State of Big Food™:2022
SnaxDaddy, u up?
A newsletter on upcoming food and beverage trends that offers a curation of brands and aesthetics written by Andrea Hernández.
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🔮 Peek into the future:
BigFood™’s big moves.
Snaxshot of market in the past year.
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Return of the Snax
There’s no denying Millennials have given snacks their redemption arc, as most of our generation forego meals in lieu of snacks. After a shock to their system, brought on by 2020’s “black swan event” —SnaxDaddy has begun to shape out. From acquisitions, to divestments, to lawsuits, shutdowns and war, here’s what BigFood has been up to in 2022.
State of Snax
—Consumers are experimenting with new channels to buy snacks, with 53% reporting shopping for snacks using at least 3 nontraditional /emerging channels in 2021. Channels include delivery apps, online ordering for curbside or in-store pickup, and DTC websites.
—80% of global consumers are expecting to be able to purchase snacks on demand.
—Functional foods are out, permissible indulgence is what people really want.
—Bob Iger recently invested in GoPuff, valued at $15 Billion, the company continues to focus on emerging brands, recently launching their own accelerator program
—Reducing waste is top of mind, as consumers say the #1 environmental impact on food choices is availability of low waste packaging (78%). They also want snack brands to offset their environmental impact.
—Social media is rising as source of discovery, 55% of global consumers say social media has inspired them to try a new snack in the past year, including even greater majorities of Gen Zs (70%) and millennials (71%).
—SnaxParadox: when it comes to on-the-go snacks, high protein, low carb is high in demand, meat snacks category grew by 8.8% in retail value from 2019-2020 to reach $103 million.
—Office snax will become a thing of the past as companies cut perks.
PepsiCo Frito Lay:
In 2021, PepsiCo’s net income totaled $7.62 billion, up 7%/revenues were $79.47 billion, up 13% compared to 2020.
2021, Pepsi reported increasingly taking market share from Coca-Cola.
Back in 2021, PepsiCos agreed to divest Tropicana, Naked and other North American juice brands for pretax cash proceeds of $3.3 billion.
Thanks to double-digit percent increases for the prices of many of its popular snack and beverage products, PepsiCo saw a big jump in revenues in Q1 of 2022.
Beyond Meat and PepsiCo launched meatless jerky, becoming the first shelf stable product from $BYND as part of their ongoing partnership, but can’t keep the company from losing money.
In the past 5 years, Frito Lay's revenues have out-grown $MDLZ das their global brands gained strength and via deeper penetration in the emerging markets.
In Canada, they recently ended a price standoff with Loblaw one of the country’s biggest grocer chains.