PepsiCo is seeing “huge growth [in] small-format” snacks, as well as for mini cans of its full-sugar products, CEO Ramon Laguarta said Tuesday on an earnings call.
The reason? “Portion control,” Laguarta said.
But sometimes you just want something sweet, salty or fatty, albeit in moderation. That’s where smaller sizes come in.
“It’s becoming increasingly obvious that smaller pack sizes are really important,” to companies trying to appeal to more customers, said Duane Stanford, editor of Beverage Digest. “If you do it right, it’s definitely a win.”
Cheap snacks on the go
There’s another bonus for the company: When customers buy smaller sizes, they usually spend more per ounce compared to a larger version of the snack or drink — sometimes significantly more. And as people get back to their pre-pandemic routines, some are placing a premium on snacks and sodas that can be eaten on the go, no matter the relatively higher cost.
“Post-pandemic, people have returned to busy schedules and are increasingly choosing convenient options that fit into their lifestyles, including grab-and-go products that can easily be transported,” said Claire Lancaster, head of food and drink at WGSN, a trend forecasting company.
The demand for smaller items could also be due to more snacking in general, she noted, adding that people are shifting “toward all-day snacking rather than having three sit-down meals.”
Laguarta pointed to a variety of pack sizes and prices as a method to keep consumers in the fold and drive sales.
Customers who can afford only a small snack today may become tomorrow’s repeat customers, agreed Stanford, as companies hope that they will “stick with [their] product or even move up to more expensive versions.”