Healthier Habits Haven't Stopped the Doritos and Cheetos Snack Boom

Snacks, not fizzy drinks, served once again as the highlight of PepsiCo’s (PEP) quarterly performance last week. Revenue from its Frito-Lay division increased 2 percent in North America, according to an earnings report released Wednesday, while beverage sales in the region remained flat.

Pepsi Chief Executive Indra Nooyi told analysts on a conference call that revenue from sales of Lay’s, Doritos, and Cheetos increased, in percentage terms, in the low to high single digits, driving some of the company’s growth for the quarter. She also mentioned strong results in dips, including the Sabra hummus brand, as well as crackers and Smartfood popcorn.

Link to Pepsico's latest Quarterly earnings reports

By now the narrative that consumers are making more health-conscious decisions about what they eat and are buying more fresh foods has become well established. But that doesn’t mean we’ve totally given up snacking, and sales of such packaged foods as chips and snack bars reflect this fact.