https://www.yahoo.com/finance/economy/policy/articles/doritos-prices-jumped-50-four-200242097.html
9 replies (most recent on top)
@p1 I remember 20+ years ago when HEB approached Frito about producing HEB brand chips, Frito basically laughed them out of the building in Plano. So HEB went out and set up their own manufacturing facility, the rest is history.
They lost the war when they refused to produce private labels and take part of the profits. Now, the private labels are dominating the market with a better product at half the cost.
I just laugh, thousands of people running around in Plano at Frito HQ like their hair is on fire in a frenzy like clowns at a Circus sideshow, all this "world class leadership", with meetings and more meetings, with more and more pointless powerpoints, all this playing office. This frenzy of constant repeated pointless activity and pretend work which has resulted in $7 Doritos, declining sales, declining market share and a really poor return on PEP stock. Yet, Frito's world class leadership thought $7 Doritos was okay and rubber stamped it. They have no clue and are just doing what they have always done, just shrink the bag and raise the price ( to $7) and hope the stupid consumer doesn't notice . Einstein's theory of "Crazy / Insane" is doing the same thing over and over and hoping for different results.
@c0 exactly on the mark. FL has been a massive hog bien of red tape and fifedom. They have decimated beverages with their utmost stupidity of bringing their re--rded ways of working.
I can't wait for beverages to be spin off.
Frito offers the consumer zero value, it's crossed the "just not worth it" line in the consumer's mind, just like McDonalds and fast food. All these brands are way to expensive for what the consumer gets, that is why they are now perceived as a rip-off to be avoided. There are much better alternatives in the market that are a value for the consumer.
The only "strategy" Frito ever had was shrinking the bag, pumping more air into the bag and raising the price. This was the best the massive expensive clueless bureaucracy in Plano could do. No sympathy for them, they deserve to lose billions more.
Gabba gabba hey!
More info.
https://www.yahoo.com/finance/markets/stocks/articles/pepsi-warned-7-doritos-too-151723387.html
It has already been doomed!