After 13 years, PepsiCo round manufacturing Lay's in the country

The multinational PepsiCo brought back to Brazil the Lay's potato chips, which were out of the market for thirteen years. The company's biggest brand in the world, with annual sales of $ 12 billion, the goldfish is the largest investment of the company's food Division this year in the country.
The Lay's is part of a larger plan, released two years ago, when PepsiCo decided to increase its investment in the brands of food. Investments, in amounts not informed, 20% in 2013 grew and 2014 in relation to 2012.
The Lay's potato distribution began in November in São Paulo and Rio, and will arrive gradually to the whole country in the first half. The line is being manufactured in Sete Lagoas (Minas Gerais), 72 km from the State capital.
There are 75 years on the market, Lay's is present in more than 60 countries. "Brazil was the only major country to PepsiCo hadn't the brand," says the Director General of snack Division of PepsiCo, Andrea Alvarez. The country is the fourth global operation of the group.
PepsiCo had brought to Lay's country in 1999, with production in Itu (SP), but the item lasted less than two years in the portfolio. "The market was not so mature, and we prefer to take the mark to preserve it," says Andrea. "Today the market is more open to innovation."
The initial portfolio of products consists of two sizes (33 and 90 grams) and three flavors: Classic, ' sour cream ' and rump. The first two are the most sold in the world, and the last was developed for Brazil. The package, a bag that opens easily and can stand on a table, is a Brazilian design.
PepsiCo owns Ruffles, which has 60 percent of the market for chips in Brazil. Andrea explains that the target audience of the two brands is different. Ruffles attracts teenagers, while Lay 's-thinner and drier-for young adults. "There must be some cannibalization, but the market is still small and we see room for both to grow," says Andrea.
The snack area is the largest in PepsiCo in Brazil. The company has a division that brings together food snacks, cereals and biscuits (Mabel, Equilibri, Quaker, etc.) and dairy products (chocolate milk and Toddynho). The unit of drinks (Pepsi, Gatorade, Lipton) is lower, representing a third of all the food Division.
The Brazilian potato snack market is relatively small compared to other countries. The consumption is only 200 grams per capita per year, according to PepsiCo. The thread moves around r $ 1 billion per year, which represents about 25% of the total market of snacks. "In other places, it's 50% of the total," says Andrea. She designs the Brazil reach that level in five years.
"Lay's will be key to this and will occupy a space around Ruffles," he says. Ruffles is the flagship of the company in Brazil, the biggest billing. Lay's price per kilo is superior to that of Ruffles, but the package sizes are different.
The snack market grew about 3 percent in volume and 10% in revenues last year, until the third quarter. For 2014, Andrea designs an increase of up to 15% on sales volume of snacks before and during the World Cup, but the movement in the second half is more uncertain.
PepsiCo reduced their prices around 3% to 4% by the end of 2013. Among its competitors are Yoki, bought by General Mills in 2012.
The PepsiCo's snacks are made with a variety of potatoes developed globally by the company. For 20 years, the company works with Brazilian farmers, who grow the tuber used in Ruffles. As most of them stay in Minas Gerais, the company decided to use the Sete Lagoas plant to produce Lay ' s. This unit can support the desired production without the need for expansion, for the next two years, says the Executive.
PepsiCo has thirteen food factories in Brazil and produces chips of potatoes in four of them. Manufactures items of Sensations and Lucky Potato and imports the brand Stax. The use of the installed capacity is between 75% and 85%.