Inside PepsiCo’s chef-led snacks strategy

PepsiCo knows that not every daring experiment in the R&D kitchen pays off. But that doesn’t stop the snacks giant from trialling unlikely flavour combinations on consumers, with new product development in mind.

The FMCG giant is bold enough to serve up a plate of savoury Doritos topped with sweet apple and cookie dough, and wait for consumer feedback. In public. These unexpected flavour mash-ups can catch consumers off guard, but everything is data acquisition for PepsiCo’s R&D team.

So how does PepsiCo test new and often-unconventional culinary pairings on the public, without taking major risks on launching new crisp varieties?

With “rolling innovation labs”, explains PepsiCo R&D chef Patrick Clifford.

How ‘rolling innovation labs’ inform PepsiCo’s snacks strategyA “rolling innovation lab”, in this context, is a food truck. That’s how the snacks giant is taking its foods and drinks off the shelves and into the streets, not only as a marketing activation, but as a way of testing new product development (NPD) ideas.

For PepsiCo, these types of immersive experiences are the “perfect platform” to test new flavour, ingredient and meal ideas on consumers. And not just any consumer – when developing new flavours for its snacks portfolio, PepsiCo is strongly focused on local populations. “For local executions, the local team and R&D chefs work together to identify the best flavours and ingredients that most authentically capture the heart of that region’s food culture and traditional dishes,” explains Clifford.

This idea is that PepsiCo can try new concepts and gather consumer feedback in real time (and IRL). On the marketing side of things, the company also wants to elevate consumer experiences and “surprise them in unexpected ways”.

At recent sporting matches in Europe, PepsiCo served up new takes on culinary classics. In Portugal, the company plated Lay’s potato chips or diced potato dishes mixed with smoky chorizo and paprika, or reinvented with Pastel de Bacalhau (salted cod fritter) and Pastel de Nata (custard tart) flavours.

In Germany’s Munich, crisps or potatoes are paired with pickled vegetables, strawberry jam, or currywurst (curry-flavoured ketchup) flavourings.

Strawberry jam on Lay’s potato crisps … On the topic of unlikely flavour combinations, one of the offerings sold from a PepsiCo food truck was a Strawberry Cheesecake Lay’s Loaded Potato Chips dish in Germany.

Picture layers of salted potato chips, cheesecake topping made form a cream cheese spread, double fat and whipping cream, strawberry jam and biscuit pieces.

We haven’t heard this will inspire Lay’s next NPD launch!

Could fan favourites end up as PepsiCo snacks?The most enjoyed dishes are those that best combine local food culture with traditional ingredients and flavours. They almost always “celebrate local culture, culinary trends, and bold creativity”, explains the R&D chef.

PepsiCo wants local consumers to help inform local NPD. (Image: PepsiCo)PepsiCo draws in local experts to help design the menu, to ensure they hit the mark on those three points. In Europe, the snacks major has rethought kapsalon (loaded fries) for the Dutch, tortillas for the Spanish, and lumpfish caviar for the French.

In India, PepsiCo has partnered with American-Indian Michelin-star chef Vikas Khanna to develop tests on traditional chaat dishes, and has handed over culinary control on elevated dishes. A prime example is Khanna’s purple potato dish stuffed with mozzarella, masala seasoning and encrusted with Lay’s chips.

Another high-end offering saw a plate of Lay’s surrounding hummus, served with feta, falafel, tomatoes, cucumbers and olives. A Lay’s-inspired Lebanese mezze, if you will.

PepsiCo was tight-lipped on whether any of these inventions would end up in the snacking aisle, but Clifford did suggest these combinations were amongst the most-loved. “These flavour experiences blended authenticity with surprise, elevating everyday dining moments.”

Which flavours may need a rethink before hitting shelves?Not every dish is a roaring success. But that’s to be expected when chefs are truly pushing the envelope.

“Not every bold experiment pays off – and that’s part of the process.

Chef Patrick Clifford, PepsiCo R&DWhat often doesn’t work is the naming or description of a dish. It’s less likely the issue stems from the food itself, explains chef Clifford. In these cases, names or descriptions can usually be tweaked, so that they feel ”more approachable” to the brand’s target consumer.

“Not every bold experiment pays off – and that’s part of the process. We like to test and learn Gathering insights is critical to our journey and help us refine our approach.”

A good example was PepsiCo’s Doritos Loaded tarte tatin dish, which married the crisp brand’s savoury profile with the sweetness of tarte tatin’s apple and cookie dough. “It caught consumers off guard, but once they tried it, they loved it,” says Clifford. “Little tastings can often help them take that leap of faith – risk-free.”

PepsiCo takes to the streets to get in-real-time feedback from consumers, IRL. (buffs.creative/Image: PepsiCo)PepsiCo is not giving up on its traditional new product development process, but says the two approaches are complementary. What traditional NPD can’t do, when confined within the walls of a food lab, is go out and meet consumers.

Food trucks in this context serve as “iterative learning labs”, says PepsiCo’s R&D chef, allowing the company to “test more options than traditional NPD innovation”.