PepsiCo cashes in on the direct-to-consumer bandwagon

GlobalData Consumer 14 May 2020 (Last Updated May 14th, 2020 14:30)
PepsiCo cashes in on the direct-to-consumer bandwagon

Following on from Kraft Heinz’s recent launch of its Heinz to Home service in the UK, PepsiCo has launched two of its own direct-to-consumer (DCT) websites, named the PantryShop.com and Snacks.com, in a bid to better engage with consumers during the Covid-19 pandemic.

In an impressive display of the company’s e-commerce capabilities, the two online platforms were developed in less than 30 days and offer consumers an accessible and convenient service to get their favourite PepsiCo snacking products.

The websites both offer a unique position inspired by the recent changes to people’s lifestyles that the lockdown measures have enforced. For instance, the PantryShop.com focuses on particular categories, such as ‘Rise & Shine’, ‘Hydration’, ‘Snacking’, and ‘Workout & Recovery’, in which consumers can order specific product bundles that fit their mood or requirements. Some of the brands included are Quaker, Gatorade, SunChips and Tropicana.

On the other hand, the Snacks.com site offers an array of products from the Lay’s, Tostitos, Cheetos and Ruffles brands, with free delivery for first time orders of more than $15.

In week 7 of GlobalData’s Covid-19 tracker consumer survey, 61% of US consumers admitted that they are trying to only buy products from their favourite brands. Such DTC services capitalise on this demand for familiar, nostalgic and often perceived to be higher quality products, and will help to cement a strong online presence for the brand. Whilst this has obvious benefits during lockdown, while reliance on online shopping and delivery is at an all-time high, there is also ample opportunity for it to provide the company with long-term sales.