PepsiCo Intros Rold Gold Pretzels - Analyst Blog

The Frito-Lay division of PepsiCo, Inc. PEP has recently introduced a new pretzel snack under its popular brand Rold Gold. The new product is called Rold Gold Pretzel Thins.

Rold Gold Pretzel Thins come in three flavors: Original, Garlic Parmesan and Three Cheese. These light and crunchy-textured pretzels can be complimented with a huge variety of dips and toppings. Available at grocery stores nationwide, Rold Gold Pretzel Thins come in an 8.25-oz. bag with a suggested price of $3.29.

With changing consumer preferences, there is a huge demand for new snacking products with unique flavors. Importance is laid on frequent snacking in order maintain a steady energy level through out the day. Rold Gold Pretzel Thins offer a perfect snacking option for the afternoon break when energy levels tend to dip.

Product innovation plays a huge role in the company's success. PepsiCo regularly creates new flavors in its existing products as well as maintains a robust pipeline of new products.  

PepsiCo's overall product portfolio consists of 22 brands including Pepsi, Mountain Dew, Gatorade, Tropicana, Lay's, Doritos, Cheetos and Quaker, each generating annual retail sales of more than $1 billion. Though PepsiCo has the competitive advantage of selling both snacks and beverages, which are complementary food categories, the present product introduction is in line with the company's long-term strategy to shift the business mix more toward snacks.

However, this Zacks Rank # 4 (Sell) company has been witnessing a challenging consumer spending environment and continued sluggish volumes in the North American beverage business for sometime, which keeps us on the sidelines.

Some better-ranked stocks in the consumer goods sector are Coca-Cola Enterprises Inc. CCE, Dr Pepper Snapple Group, Inc. DPS and Monster Beverage Corporation MNST, all carrying a Zacks Rank #2 (Buy).