Several Major Food Brands Cut Down Product Variety


Manage episode 268450097 series 2530089
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Big food companies have pared down their product variety to speed up the production of their most popular items. In the last few months, quarantines implemented in several countries have caused a surge in demand for some products from major food brands. To ensure that they have enough stock to meet this increase, companies like General Mills, Mondelēz, and PepsiCo have decided to streamline their production process and focus their resources on in-demand products. A General Mills executive said that offering fewer products makes the process of supplying goods faster and less complicated. The move also allows businesses to concentrate their marketing and distribution efforts. Currently, Mondelēz is making fewer flavors of Oreos, one of its highest-selling products. The president of the company’s North American branch said that the company has put off the production of new Oreo flavors to keep up with the demand for regular Oreos. Likewise, PepsiCo's Frito-Lay has been offering a narrower range of potato chips and other snacks since March. According to one company executive, Frito-Lay began simplifying its offerings to expedite production. The executive added, however, that the company has recently resumed making some varieties, like light-salted and extra spicy chips. According to packaged food specialist David Driscoll, despite the reduction in variety driven by the health crisis, it is likely that many companies will return to their regular production soon. He said that consumers will be looking for new varieties by December, which could prompt big food companies to produce new products in the second half of the year.

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