Frito Lay Manufacturing

Performance indicators

2021: First revenue drop in 20 years

The revenue of the maker of Lay's chips in Russia in 2021 fell for the first time in 20 years. During that 12-month period, Frito Lay Manufacturing registered sales in the amount of 35.5 billion rubles against 39.9 billion rubles in 2020. The net profit of the subsidiary PepsiCo decreased even more - 2.5 times, from 7 billion rubles in 2020 to 2.8 billion rubles in 2021. Such data were published in the SPARK-Interfax system in April 2022.

The revenue of the maker of Lay's chips in Russia in 2021 fell for the first time in 20 years.

Interfax notes that previously the revenue of Frito Lay Manufacturing fell in 2001, after which the indicator only increased. According to the results of 2021, the gross profit of the producer amounted to 8.96 rubles, having decreased relative to such profit a year ago at 14.96 billion rubles.

By the end of December 2021, Frito Lay Manufacturing produced chips at two factories located in the Moscow (Kashira) and Rostov (Azov) regions. The company is the largest industrial consumer of potatoes in the Moscow region. Raw materials for the production of snacks in the suburbs are purchased from Russian suppliers, including farms from the Moscow region. ^[1]]

History

2022: PepsiCo stops sales of some products, but not Lay's chips

In early March 2022, PepsiCo announced that due to a special operation in Ukraine, it decided to suspend the sale of soft drinks in Russia, investments and advertising activities in the Russian Federation. At the same time, the sale of dairy products, as well as food for children, will continue, the company said in a statement.

A little later, in mid-March 2022, PepsiCo announced that it would continue to sell potato chips in Russia, in particular, chips under the brands Lay's, Khrustim, Cheetos, Doritos will remain on sale. Against the background of high inflation in Russia, PepsiCo may be forced to raise prices for goods, or reduce the size of packages, the company warned then.

2021: Supply interruptions due to potato shortages

In September 2021, Frito Lay Manufacturing, a member of the PepsiCo enterprise, warned counterparties about expected interruptions in the supply of Lay's products in September and October due to a shortage of potatoes in the market. Hot summers and the subsequent protracted rains do not allow to remove the crop. In addition, bad weather also affected the size of tubers, while large potatoes are needed to produce chips.

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