PepsiCo pivots to fresh foods amid shifting consumer preferences

PepsiCo is pivoting its business strategy toward fresh foods to align with shifting consumer preferences. As shoppers increasingly move away from processed snacks in favor of healthier options, the company is investing heavily in the “perimeter” of grocery stores, which includes produce, deli items, and prepared fresh foods.

To expand its presence in this high-growth sector, PepsiCo has launched Tostitos guacamole and introduced the Mediterranean-style gazpacho brand Alvalle to the U.S. market. This strategic shift comes as the manufacturer faces slowing sales in traditional snack categories like Doritos and Cheetos, while data indicates that store perimeter visits are growing faster than trips to the center aisles.