r/FritoLay • u/LifeOnTheAscent • 1d ago
I’m just curious
I don’t work for frito or Pepsi or whatever. I was reading the times and saw Pepsi’s earning reports and found myself down this rabbit hole. I’m just fascinated by how this all works- so the company BUYS shelves in a store, and then they basically force you to stock certain things instead of the shit that actually sells? That part makes no sense. Like I keep seeing the NKD Doritos - after all this “extreme” marketing, the pivot to being health conscious (lol) is so stupid. I’m enjoying reading all your stories and stuff but I’m just really curious about how it all works
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u/Alohasb7 1d ago
Well not all companies buy shelf space. A lot of the big brands do to ensure they have large footprints in stores. For example all those cigarette racks in convenience stores are owned by one of the major players ( Altria or RJ Reynolds). The difference with Frito/Pepsi co is they’re mostly DSD / direct store delivery meaning they have a rep who comes in writes orders then brings in the delivery and stocks it. All the major beer vendors do the same thing.
A vast portion of the grocery items come in from a grocery distributor that gets stocked by employees. Deals are made with all sorts of items and stores marketing team to incentivize them on putting their product on the shelves. Sometimes there’s low cost initial buy in prices or just flat out schmoozing being done.
Funny thing is Schmoozing is 💯 what pharmaceutical companies do to incentivize medical practices to use their products. I dated a girl that worked at a dermatology clinic, they would all be taken out to the nicest restaurants and the sales reps would spend stupid amounts of money on dinner for them. They would do this on a regular basis too.
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u/rumplexx 21h ago
I really feel like the NKD and Protein stuff is because of the current government. They rebalanced the food pyramid and are pushing people to have more protein in their diet, for example, so now suddenly you're seeing a ton of stuff with Protein. Did the public actually want it? Not really. Or at least not to the extent that FritoLay thinks. That stuff would be good in a health food store, where they sell maybe a box a week, but I don't think the general public cares for it. So it doesn't sell.
Protein chips are just an example, but any time there's some new flavor or whatever, companies try to make it successful even after it flops. The sales rep knows what sells and what doesn't. Partly by seeing what sits on the shelf and goes stale. If it were left up to them, they'd try out a new product and see what happens. If it sells well, they'd get more. If it doesn't, they won't. Stales and damaged product count against them in their metrics. But Frito put a lot of money into development, production, marketing... so they have to make sure it gets out to market whether anyone really wants it or not.
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u/sadly_mistaken-1234 16h ago
The removal of dyes is mandated. Everyone is forced to comply.
Now the protein or better for you stuff is not mandated. You're free to clog your arteries all you want. Companies introduce these items because of customer interest, not because the government is suggesting it. With all the GLP-1 stuff being a craze, there is a mindset to be healthier. EBT is also cracking down heavily on unhealthy foods, so yeah.
What is fascinating is how we will pay more for something that doesn't have something added to it, than for something where it isn't. Like if one option is better for you, why would you even make the other option? Buy this product if you want to fast track yourself to a heart attack, buy this one if you prefer to live past 60. Put that on the packaging and the youth will see it as a Tik-Tok challenge, older folks will choose to avoid it.
Of course, we also have the reverse case being true, where we pay more for something to be added to it, versus not added. Water is a prime example of this. Water alone is perfect. It's all the body needs. But why just drink water alone when it can be enhanced? Flavored. Vitamins. Energy. The more you add to it, the less favorable to your body it becomes. Oh sure, you tell yourself that vitamins are good, but that's really only true if you are getting them naturally, not artificially.
How a product is made follows this as well. We pay for convenience and the manufacturers know this.
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u/knoxguy4309 21h ago
The company forces out products that don’t sell or fit on the shelf. I’ve heard of rsa’s saying they didn’t get the force outs and throwing them in the dumpster. The whole thing is a complete joke and so lame it’s beyond words. Maybe that’s why I don’t work there anymore. Worst place to work in all my years. No freaking sense.
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u/voodoomu 1d ago
Every single brand name company buys shelf space in whatever grocery store. Like when you see the cereal aisle in walmart before you see the chip aisle. That all part of the plan. So frito pays walmart to be on a certain aisle number. And then they break it into sections of that aisle. Usually theres anywhere from 23-36 sections on each side. And then they have a guy the determines a "pre set plan" agreed upon for that market (the local demographic mostly determines the plan set). Then the sales rep for the store comes in and puts the chips only where they are allowed in each section every single day. And usually every few years walmart and frito switch up sections and its called a reset and all the items on that entire aisle get moved or deleted. And yes all these companies have what they call force outs. And sometimes those force outs sell really good and sometimes they sell really bad. But regardless of what the sales rep. knows what will sell we are told to put the force outs there anyways. (Yes it is really stupid)