Pepsi acquires Bare Foods
As more and more food companies are jumping to the healthy snack ship, giant soda company, PepsiCo continues their exploration to healthy snacks and bought Bare Foods, a maker of baked fruit and vegetable snacks.
The company has started exploring healthier options for their snacks, said Vivek Sankaran, president and chief operating officer for PepsiCo’s Frito-Lay North America unit.
They started with Simply Tostitos organic tortilla chips, Simply Organic Doritos and Off the Eaten Path, which makes crispy snacks using vegetables like black beans and green peas.
Since 2006, the percentage of revenues coming from healthier food and beverages at PepsiCo has climbed to 50 percent from 38 percent.
With the rising number of health conscious consumers, sales of nuts, trail mix, and organic savory snacks in the United States jumped to nearly $9 billion last year from $7.8 billion in 2012, according to Euromonitor International.
Though going for more healthy snacks have proven to rake in profits, companies acquiring small healthy snack producers tend to be cautious.
“About eight or ten years ago, you had a lot of small companies come into the world of snacking,” Sankaran said. “Many of them didn’t stick. Consumers tend to be fickle and try lots of different things. If something isn’t a powerful concept, it doesn’t last.”
Among Bare Foods products are salt-and-vinegar beet chips and Granny Smith apple chips