Frito-Lay Targets Hispanics with Snack Assortment

Frito-Lay launched an assortment of spicy snacks in cities with large Latino populations in November, reports The Wall Street Journal. The single display consists of new Doritos Rancheros, four items that were big sellers for Mexican subsidiary, Sabritas SA, and five spicy snacks already sold in the U.S.

Frito-Lay has blanketed 20,000 stores in the test markets of 14 cities in Chicago and the Southwest with a selection that ranges from hot, crunchy pork rinds to tangy, lime-flavored potato chips called Lays Limon. The stores put the new racks stamped with the slogan A Todo Sabor, loosely translated as "In Full Flavor," near the checkout and the beer cooler.

With a 58 percent share of the salty-snack market already in the U.S., Frito-Lay is "looking for the next growth opportunity," and the company sees Hispanic consumers as an important one, says Rebeca Johnson, a vice president in charge of ethnic marketing. "We couldn't ignore this segment. It's a population the size of Canada," she says.

Moderator Comment: Will large companies such as Frito-Lay continue to produce niche/targeted products if they fail to grow to mass market levels? [George Anderson - Moderator]

• Frito-Lay Adds Spicy Accent To Snacks to Court Hispanics - The Wall Street Journal (subscription required)