The Frito-Lay division of PepsiCo, Inc. (PEP) recently introduced new kettle cooked potato chips under its popular brand Kettle Cooked. The new product is called Lay's Kettle Cooked Lattice Cut potato chips.
Lay's Kettle Cooked Lattice Cut potato chips come in two flavors: Aged Cheddar and Black Pepper and Roasted Garlic and Sea Salt. These new chips are made from thick slices of Lay’s signature potato, cut into a Lattice shape. These chips are then kettle cooked in small batches to retain the crispy texture. Available at retail stores nationwide, Lay's Kettle Cooked Lattice Cut potato chips come in 2.5-oz. and 7.0 oz bags at a suggested price of $1.49 and $3.49, respectively.
With changing consumer preferences, there is a huge demand for new snacking products with unique flavors. Product innovation plays a huge role in the company’s success as PepsiCo regularly creates new flavors for its existing products and maintains a robust pipeline.
PepsiCo’s overall product portfolio consists of 22 brands including Pepsi, Mountain Dew, Gatorade, Tropicana, Lay's, Doritos, Cheetos and Quaker, each generating annual retail sales of more than $1 billion. Though PepsiCo has the competitive advantage of selling both snacks and beverages, which are complementary food categories, the present product introduction is in line with the company’s long-term strategy to shift the business mix more toward snacks. In fact, earlier this week, the company introduced a new pretzel snack called Rold Gold Pretzel Thins that comes in three flavors: Original, Garlic Parmesan and Three Cheese.
PepsiCo carries a Zacks Rank # 3 (Hold).
Some better-ranked stocks in the consumer goods sector are Coca-Cola Enterprises Inc. (CCE), Dr Pepper Snapple Group, Inc. (DPS) and Monster Beverage Corporation (MNST), all carrying a Zacks Rank #2 (Buy).