The Frito-Lay division of PepsiCo, Inc. ( PEP ) recently introduced a new flavor of potato chips named Lay's Wavy Garlic & Sea Salt potato chips under its popular brand Lay's Wavy. In addition, Lay's Wavy has also introduced a new packaging for the entire product line.
The introduction of Lay's Wavy Garlic & Sea Salt potato chips comes at a crucial time, with National Garlic Day just around the corner on April 19. Garlic has been an all time favorite ingredient and the new chips incorporate the flavor of dried garlic with a pinch of sea salt. With changing consumer preferences, there is a huge demand for new snacking products that tickle the taste buds.
Product innovation plays a huge role in the company's success. PepsiCo regularly creates new flavors of existing products as well as maintains a robust pipeline of new products.
PepsiCo was in news recently for rumors of its possible merger with food giant, Mondelez International ( MDLZ ). The Telegraph of London reported last month that activist investor Nelson Peltz is fast building stakes in PepsiCo and Mondelez, possibly in pursuit of a large $170 billion merger of the consumer giants.
The news daily conjectured that Peltz may push PepsiCo to either take over Mondelez or split it up into two separate companies. PepsiCo has, however, denied rumors and issued a statement stating that it is not interested in large acquisitions.
Mondelez emerged from the split of Kraft Foods, Inc last year into two separate companies, Mondelez and Kraft Foods Group ( KRFT ).
PepsiCo carries a Zacks Rank #3 (Hold).
Another company in the consumer staple sector, which is better positioned at current levels is Energizer Holdings Inc. ( ENR ) carrying a Zacks Rank #2 (Buy).