- PepsiCo is broadening the reach of it's better-for-you brand Hello Goodness from vending machines to online ordering, according to an article on CNBC.
- Curated boxes of Hello Goodness brands, like Sun Chips, Smartfood popcorn and Nut Harvest pistachios, are currently available on Amazon. A store test on the e-commerce giant in September last year performed nearly 45% better than similar PepsiCo campaigns, according to the company.
- PepsiCo plans to use the boxes of healthy snacks as another inroad to e-commerce, and as a way to test out new products by tracking outside sales of new additions to the box.
Expanding the reach of Hello Goodness is the latest move by PepsiCo to tap into the booming better-for-you snacking space.
The Hello Goodness umbrella of products, which range from Sabra hummus to Simply Cheetos Puffs, has performed exceptionally well in vending machines. According to PepsiCo, studies show that adding a Hello Goodness machine to a vending bank boosted sales between 12% and 59%. The next step is to translate that success to e-commerce.
PepsiCo CEO Indra Nooyi says the company's e-commerce business is now approximately $1 billion in annualized retail sales, with room to grow. Hello Goodness is a logical brand to add to its e-commerce lineup, as it has a good chance to drive impulse purchases more commonly associated with in-store shopping.
The better-for-you snack market is continuing to grow as consumers not only reach for more small meals throughout the day, but also expect better nutrition from those foods. The individual snacking category has reached $33 billion in the U.S., according to Nielsen. Products that were free from artificial colors and flavors saw a 16.2% boost in sales during each of the last five years. Snacks with no or reduced sugar claims saw a jump of 11.3%.
PepsiCo has aligned itself publicly to meet demand for healthy snacks. In 2016, the company laid out nutrition goals, including reducing sodium and saturated fat by certain increments by 2025.
The Frito-Lay division of PepsiCo is innovating current products and developing new ones to give consumers healthier options when it comes to snacking. Consumers largely know the brands that are included under the Hello Goodness umbrella, even if they're not familiar with the healthier formulas.