PepsiCo Takes Action To Capture Growing Demand For Online Groceries With New Snack Sites

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PepsiCo hopes to capitalize on the moment. The company announced Monday the launch of Snacks.com – a supplier of its products such as Cheetos, Doritos and Lay’s potato chips – as well as Pantryshop.com, which offers lots of oatmeal, cereal and other options.

The sites could offer a short-term solution for people who have trouble placing orders on major e-commerce sites like Amazon, or those who want a quick way to order a variety of products.

“We wanted to give the consumer another choice,” said Gibu Thomas, head of e-commerce at PepsiCo, at CNN Business.

Thomas anticipates that customers will still purchase most of the PepsiCo products from traditional retailers.

But, he noted, if people react well to the new sites, it could help shape the company’s retail strategy for the future.

Online food sales increased 66% for the week ending May 2, compared to the same period last year, according to market research firm Nielsen. Food had the strongest year-over-year growth in e-commerce for this week, said Nielsen.

Like other food and beverage companies, PepsiCo ((DYNAMISM) saw an increase in online orders during the pandemic.

Coca Cola ((Knockout), PepsiCo’s main beverage competitor, has also reported an increase in online sales. Coca-Cola “has seen an upsurge in e-commerce worldwide, the growth rate of the channel having doubled in many countries,” said company CEO James Quincey in a recent call to analysts to discuss the company’s first quarter financial results. He said the company plans to “embrace some seismic changes in consumer behavior that are underway, particularly in e-commerce.”

Before the pandemic, consumers rarely bought groceries online. A Gallup poll of about 1,500 American adults conducted over approximately two weeks in July 2019 found that 81% of those surveyed said they never shop online.

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