PepsiCo Looks Beyond Chips and Drinks as Fresh Foods Gain Ground

PepsiCo is increasing its focus on fresh foods as consumers show greater interest in healthier, fresher and less processed products.

The move signals an important change for the company behind brands such as Doritos and Cheetos. PepsiCo has traditionally been strong in the centre aisles of supermarkets, where packaged snacks and beverages dominate. It is now looking towards the outer sections of stores, where shoppers usually find fresh produce, deli foods, refrigerated products and ready-to-eat meals.

As part of this strategy, PepsiCo recently launched Tostitos guacamole and expanded its Mediterranean-style chilled soup brand Alvalle. The company plans to grow further through new product launches, acquisitions and by taking some of its existing brands into refrigerated and fresh-food categories.

Marisa Perez, senior vice president and general manager for PepsiCo Foods North America’s fresh experiences portfolio, described fresh foods as a long-term growth opportunity for the company.

Freshness Influences Buying Decisions

Changing shopping habits are one of the main reasons behind PepsiCo’s move.

According to Hartman Group data cited by the company, 61% of consumers consider freshness while making food purchases. Seven out of 10 shoppers also believe products found around the outer sections of supermarkets offer better quality and are worth paying more for.

Numerator data shows that visits to these fresh-food sections grew 15% faster than visits to the centre aisles in 2025.

The fresh-food perimeter is already a major business, generating more than $271 billion in annual sales. This makes it an attractive market for large food companies looking for new areas of growth.

For PepsiCo, fresh foods could also create more occasions for consumers to use its brands. The launch of Tostitos guacamole, for example, followed the company’s observation that consumers were already eating its tortilla chips with avocado-based dips.

Acquisitions Could Support Expansion

PepsiCo is not entirely new to fresh foods. The company has been associated with hummus and guacamole brand Sabra for many years. After a 17-year partnership, PepsiCo acquired the remaining stake in Sabra in 2025.

The company expects its fresh-food business to grow through a mix of new brands, possible acquisitions and the expansion of existing products into new categories.

The strategy also comes at a time when growth in some traditional processed-food categories is slowing. PepsiCo generated nearly $94 billion in revenue in 2025, with a large share still coming from snacks, soft drinks and other packaged products.

As consumer preferences continue to change, PepsiCo wants to broaden its identity beyond snacks and beverages and secure a bigger share of the growing fresh-food market.