PepsiCo Launches D2C E-Commerce Stores

Need to Know

• Hundreds of PepsiCo products are now available for purchase by individual consumers via PantryShop.com and Snacks.com.
• PepsiCo is looking to strengthen its direct-to-consumer capabilities as shoppers turn to e-commerce during coronavirus pandemic.
• Brands available for purchase include Quaker, Tropicana, and Lays.
• The majority of orders will arrive within two business days, the company says.
• More and more brands such as Heinz and Aldi are turning to D2C options as shoppers look for alternative ways to purchase goods.

Analysis

Multinational food and beverage giant PepsiCo on Tuesday launched its direct-to-consumer e-stores, PantryShop.com and Snacks.com, in an effort to attract customers who are increasingly turning to online shopping in the midst of the coronavirus pandemic.

The online stores, which are now live and accepting orders, offer two ways to purchase: On Snacks.com, consumers can select items from familiar Frito Lay brands such as Ruffles, Smartfood and Quaker, and build personalized orders for home delivery. “We’ve seen incredibly strong demand for our snacks during this time,” Michael Lindsey, CTO for Frito-Lay North America, said in a statement. “Snacks.com offers consumers another way to purchase the products they love, delivered right to their door.”

On PantryShop.com, shoppers can select from curated “Pantry Kits”—such as the breakfast food-heavy “Rise & Shine” kit or the fitness-focused “Workout & Recovery” kit—that satisfy more particular grocery needs.

Customers can expect to receive their orders from either site within two business days.

“In these uncertain times, as more and more consumers are using eCommerce channels to purchase food and beverage products, PantryShop.com and Snacks.com offer shoppers another alternative for easy and fast access to products they love,” Gibu Thomas, PepsiCo’s SVP and head of e-commerce said in a statement announcing the new D2C stores.

Both online stores were created from “concept to execution” in less than 30 days, PepsiCo said, using existing in-house technology resources.

PepsiCo joins a growing cadre of companies that are pivoting to direct-to-consumer sales in an effort to maintain a healthy bottom line during the COVID-19 pandemic, as bricks-and-mortar stores remain closed or limited in their abilities to serve consumers: For instance, early last month, Heinz launched a direct-to-consumer e-commerce site in the UK.

Brands that offer direct-to-consumer options are, overall, better positioned to weather the economic storm of COVID-19, studies suggest: according to a report by marketing software firm Klaviyo, 43% of online retailers have seen an increase in sales since the COVID-19 crisis began, and a survey by e-commerce marketing platform Yotpo revealed that 43% of consumers planned to do more shopping online, with 46% of survey respondents saying they planned to purchase food staples on the internet.