- After 35 years, PepsiCo subsidiary Naked Juice brand is expanding beyond beverages with the launch of Naked Fruit, Nut & Veggie Bars, according to FoodBev Media.
- With its new products, Naked will continue to leverage healthy ingredients, including fruit, nuts and vegetables and no preservatives.
- The US remains the largest market for snack bars with the highest sales accounting for 42% of the global sales, according to a report from Mordor Intelligence.
Naked's launch targets consumers who want healthy and portable snacks. The individual snacking category has reached $33 billion in the U.S., with products touting health claims experiencing the strongest uptick in sales. Naked is hitting on these cylinders, marketing its non-GMO, no preservative ingredient lists. Non-GMO claims saw an 18.2% boost in sales for each of the last five years, followed by snack products that are free from artificial colors/flavors at 16.2%.
This rollout is the latest big move in the bar category, underscoring its continued potential. Mars just acquired a minority stake in Kind, which ran a grassroots-type of marketing campaign when it donated $6 million worth of its product to consumers across the country during Super Bowl weekend, instead of spending that money on a coveted commercial spot. Also at the end of 2017, the Kellogg Company acquired the company that makes clean-label RXBar.
PepsiCo's support could push Naked's products on a level playing field quickly.
However, this isn't a one way relationship. On PepsiCo’s earnings call earlier this month, CEO Indra Nooyi discussed its gained market share in the snacks category. PepsiCo very much expects to grow in specific product categories, and "most of the capacity increase is in snacks," Nooyi said.
As big as the snack category is, standing out among so many players, is a big obstacle.
A big advantage for Naked will be PepsiCo's marketing muscle, which will be critical as the category becomes more crowded and as sales eventually plateau.