Recently, the top-selling potato chip brand in the United States, Lay’s, announced that they will soon start labeling their iconic yellow packaging with the words “made with real potatoes.”
Although Lay’s has always used potatoes grown on farms to make their chips, the brand’s executives believe that this information hasn’t left a clear impression on consumers. Therefore, they have decided to adopt a more explicit labeling approach. A consumer survey in 2021 revealed that 42% of consumers were unaware that Lay’s potato chips are made from real potatoes.
Despite fried foods often being seen as junk food, Lay’s parent company PepsiCo believes that emphasizing the brand’s farm roots will help shape a healthier image for Lay’s and create stronger appeal.
To improve the quality of Lay’s products, some of their chips are now being made with olive oil or avocado oil, replacing canola oil and corn oil. The snacks will also use a new formula without artificial colors.
The packaging of the snacks is also undergoing a complete overhaul. They are moving away from glossy wrinkled designs to using a thicker matte material and will be printed with images of potatoes and chips. The front will bear the label “No artificial flavors or colors,” while the back will describe how the original recipe of Lay’s founder, Herman Lay, has evolved over more than 80 years and is still in use today.
Currently, there has been a decrease in consumer purchases of the snack product. As of Wednesday, PepsiCo’s stock price has fallen by about 8.7% this year.
On Thursday, the CEO of the company, Ramon Laguarta, pledged to reverse the decline in North American food business through reshaping product lines, cost-cutting, and other measures.
Over the years, PepsiCo has been continuously reducing sodium, saturated fat, and sugar content in their products but has always faced pressure for ongoing changes.
Currently, US Secretary of Health Robert F. Kennedy Jr. is strongly advocating for the “Make America Healthy Again” movement, targeting artificial colors and seed oils. This movement has garnered strong support from the public. Food companies are competing to adjust their supply chains and improve formulas to keep up with the trend.