PepsiCo is making a bigger play in fresh foods as it aims to position its portfolio to better reflect growing consumer interest in healthier fare. It’s a notable pivot for one of the country’s biggest processed food companies, but one that could spark long-term growth through access to changing consumer preferences and new eating occasions.
The snacking and beverage manufacturer is investing heavily in its business to become a larger player in the perimeter of the store, where produce, deli items and prepared fresh foods, such as guacamole and other dips, are sold. During the past month, PepsiCo has launched Tostitos guacamole while bringing its popular Mediterranean-style gazpacho brand Alvalle to the U.S.
The push for a piece of the perimeter of the store, a fast-growing section responsible for more than $271 billion in sales annually, comes as the Doritos and Cheetos maker faces a slowdown in sales as consumers reallocate their spending toward fresher and less processed foods.
“This is a long-term strategic growth ambition for PepsiCo,” said Marisa Perez, senior vice president and general manager for PepsiCo Foods North America’s fresh experiences portfolio. "We wouldn’t be doing things that are small. It’s got to be meaningful if we’re going to dedicate this level of resources, time, energy and effort to build out something like this that is so new and different.”
Around 61% of consumers say they consider freshness in their purchasing decisions, according to Hartman Group data cited by PepsiCo. At the same time, seven in 10 shoppers believe food in the perimeter is of higher quality and worth paying more for when they shop.
It’s a big reason why trips to the perimeter of the store in 2025 grew 15% faster than visits to the center of the store, according to Numerator data.
PepsiCo is tapping into that growth and expanding its presence in a portion of the store where it has long had a minimal presence. The vast majority of its sales, unsurprisingly, come in the center of the store through chips, soda, water and other offerings.
The food and beverage giant, which posted nearly $94 billion in revenue in 2025, already has a small presence in the fresh area in the U.S. PepsiCo partnered on the hummus and guacamole brand Sabra for 17 years before purchasing the remaining half of the business that it didn’t already own in 2025.
Perez said PepsiCo’s growth in the fresh segment will come from launching new brands, possible acquisitions and bringing existing products into the perimeter where they can meet the needs of consumers. PepsiCo, for example, launched the Tostitos guacamole after noticing that many people who purchased the chips used it to eat the avocado dip.
The food and beverage company ultimately wants to create more opportunities where a consumer might turn to one of its products. With fresh foods growing in popularity, and PepsiCo having such a large portfolio of brands, it makes sense for the New York-based company to devote more resources to the segment as it seeks out new growth opportunities.
“As consumers have shifted and the behavior we’re seeing is going much faster into this space, there is absolutely acceleration to expand and reshape our portfolio,” said Perez. “It’s good to see big companies disrupting themselves. PepsiCo is a company that is going boldly into spaces and is excited to think differently and challenge the status quo.”
