PepsiCo India enters premium snacks segment with Lay’s Gourmet

PepsiCo has forayed into the premium potato chips segment in a bid to strengthen its snacks portfolio. The slow-cooked premium kettle chips segment under brand Lay’s Gourmet is positioned in the fast-growing category of premium snacks in the country.

Shailja Joshi, Marketing Director, Potato Chips category, PepsiCo India, told BusinessLine that in international markets premium snacks is a significant part of the company’s business. “If one looks at the macro-snacking trends, premium snacks is growing at a fast-pace in the country. Despite inflationary pressures, this segment is evolving fast and as market leaders it is a key priority for us to develop this segment into a sizeable opportunity,” she added.

Priced at ?30 (55g) and ?50 (80g), Lay’s Gourmet chips are now available across leading retail stores and e-commerce platforms. It is available in three flavours-Lime & Cracked Pepper, Thai Sweet Chilli and Vintage Cheese & Paprika.

“We dug deep into our entire global flavour pool and then focused on localising it. We have also kept in mind the bucket of flavours that Indian consumers already prefer,” she added.

Urban distribution
The snacks and beverage major will initially focus on distribution of Lay’s Gourmet in the urban regions. Joshi added that the company will focus on modern trade stores, large traditional stores besides e-commerce platforms as part of the go-to-market strategy for the new launch.

“While there are some products being offered in the kettle chips segment no one has really managed to develop the category. So we crafted the entire pricing and flavours strategy so that Lay’s Gourmet serves as a sensorial treat for a well-deserved moment of indulgence for consumers,” she stated.

Last month, PepsiCo reported double-digit growth in snacks volumes for the second quarter in India. As per industry estimates, the premium snacks segment is clocking a growth of 20 per cent year-on-year.

Despite inflationary pressures, the premium segment in the food and beverage category reported a volume growth of 13 per cent in the 12 months period ended April 2022, as per recent estimates released by Kantar. This included segments such as premium salty snacks, cookies, tea and coffee.

For the launch, Lay’s will release a campaign film, which will be followed by a 360-degree marketing strategy.