PepsiCo Potato Chip Brands Surpass $10 Billion in Global Retail Sales

Expansion into international markets has driven the success of PepsiCo's potato chip portfolio, with about 60 percent of "Banner Sun" sales coming from outside North America.

Mar 15 2012 --- PepsiCo, Inc. announced that its global "Banner Sun" potato chip portfolio has grown to more than $10 billion in annual retail sales, anchored by Lay's, the world's largest food brand and the No. 1 potato chip brand globally.

The "Banner Sun" logo – which appears on packaging for leading brands such as Lay's, Walkers, Smith's and Sabritas – has grown into a symbol for quality potato chips around the world. Lay's and Walkers are among PepsiCo's portfolio of 22 billion-dollar food and beverage brands, a number that has doubled since 2000 – further illustrating the strength of the company's worldwide food and beverage business.

Expansion into international markets has driven the success of PepsiCo's potato chip portfolio, with about 60 percent of "Banner Sun" sales coming from outside North America. The top 10 markets are: the United States, United Kingdom, Russia, Canada, Spain, Australia, China, Mexico, Netherlands and India.

"PepsiCo continues to focus on growing its largest food and beverage brands, and this milestone is another example of how our efforts are paying off," said Salman Amin, PepsiCo's chief marketing officer. "Whether it's Lay's, Walkers, Smith's or Sabritas, PepsiCo has built some of the world's strongest brands that are loved by consumers around the globe. And it's because of PepsiCo employees throughout the world that we are able to achieve this impressive milestone – from the growers in our fields to our frontline workforce that makes, sells and delivers our products each and every day."

Global success of the "Banner Sun" potato chip brands have been driven by:

- Great-Tasting Products: PepsiCo uses culinary insights to tailor its chips to the local tastes of consumers in diverse markets around the world, with current best-sellers including Lay's Magic Masala in India, Lay's Red Caviar in Russia, Lay's Numb & Spicy Hot Pot in China, Lay's Cheese & Onion in the United Kingdom, Sabritas Adobadas (tomato & chili) in Mexico and Lay's Classic in the United States.

- Innovative Marketing: PepsiCo has leveraged its global brand-building strength to connect with consumers in meaningful ways and drive the growth of the "Banner Sun" portfolio worldwide. For example, with the "Do Us A Flavour" campaign, which first launched in the United Kingdom in 2008, PepsiCo was among the first companies to co-create new products with consumers by using traditional and social media to invite people to submit their ideas for new flavors of potato chips. PepsiCo has launched this campaign in 30 countries to date.

- Local Agriculture: As one of the largest seed-to-shelf companies in the world, PepsiCo sources more than four million tons of potatoes a year for its products. The company works with local farmers to understand every aspect of the growing process and ensure a consistent supply of high-quality potatoes needed to make the great-tasting chips consumers know and love.

- Powerful Go-to-Market System: PepsiCo has one of the world's most powerful go-to-market systems, operating more than 100,000 routes, serving approximately 10 million outlets every week and generating over $300 million in retail sales every day. This ability to make, sell and deliver its products on such a large global scale has been instrumental to the growth of the "Banner Sun" portfolio. Frito-Lay North America was one of the first companies to adopt a system for direct-store-delivery, enabling the company to reach more than 500,000 retail customers each week.