PepsiCo Faces Challenges in Convenience-Store Salty-Snack Market
PepsiCo's Frito-Lay dominates approximately 62% of the U.S. salty-snacks market, according to an SEC filing from Utz Brands. Despite this strong position, CEO Ramon Laguarta noted during PepsiCo’s Q2 earnings call that volume growth in the category has been lower than expected due to weaker consumer spending and high gas prices. Meanwhile, Casey's General Stores CEO Darren Rebelez highlighted a growing issue for national snack brands like Frito-Lay: rising prices have led consumers to shift toward store-brand alternatives. Rebelez observed an 8% decline in sales of national brand chips at Casey’s while the retailer’s private-label chip sales grew by 16%. This trend is not isolated, as a Daymon report showed that private labels gained significant market share over national brands. According to NielsenIQ data cited in the study, private label dollar and unit shares increased slightly compared to declining performance for national brand products. McKinsey’s State of Grocery North America 2026 also noted consumers are increasingly trading down to private-label goods amid inflationary pressures. Over half of shoppers have reduced impulse purchases or trade into store brands as a cost-saving measure, reshaping demand patterns in the grocery sector.
Topics: Coca-Cola convenience stores Frito-Lay PepsiCo salty-snacks market