Pepsico Introduces Doritos Chips to Britain in Global Expansion
May. 11, 1994
NEW YORK (AP) _ Pepsico Inc. introduced the top-selling U.S. snack food, Doritos tortilla chips, in Britain on Wednesday and said it plans to make Doritos available in a dozen other world markets by the end of 1995.
Pepsico said it hoped Doritos would become a global brand like its Pepsi- Cola soft drinks and its Pizza Hut and KFC restaurants.
''We intend to establish snacking as an everyday pleasure for consumers worldwide and global brands are a primary means to get us there,'' said Christopher A. Sinclair, president of Pepsico Food and Beverages International.
Doritos is the largest selling snack food brand in the United States with retail sales of about $1.4 billion, the company said.
Corn chips are a relatively undeveloped market in Britain where brands currently available are usually heavy textured and spicy and are marketed as an ethnic food, priced above mainstream potato chips.
It plans to produce Doritos at its Walkers Smiths Snack Foods unit, the leader in the $2.1 billion British snack chip category.
Doritos will be sold in Britain as Walkers Doritos and will be sold in three flavors - cool original, tangy cheese and savoury beef.
Pepsico Food, the international arm of Somers, N.Y.-based Pepsico, plansd to spend over $27 million introducing Doritos in the United Kingdom, including a $9 million marketing plan with TV advertising and sample distribution.
Pepsico also plans to build an $18 million plant in Coventry to produce Doritos for the United Kingdom and other European markets.
Peter Thompson, president of Walkers Smiths, said his company conducted an unprecedented amount of consumer research and developed a version of Doritos tailored for the British market.
He said Walkers Doritos are not as thick as those found in the United States but are being marketed in three flavors to accommodate British consumers' preference for variety.
Sinclair said he hopes Doritos will become one of the top 10 snack food brands in the United Kingdom and hopes to replicate that in other world markets. ''Our billion-dollar U.S. success story could soon be a $2 billion global phenomenon,'' he said.