THAILAND: Frito-Lay launches Pringles alternative
The imminent arrival of Lay's Stax onto the potato-chip market of Thailand will reveal an unguarded challenge by snack giant Frito Lay on the established popularity of Proctor & Gamble's Pringles. Both products are packaged in a drum and sport similarities in size, choice of flavours and price. Lay's Stax are produced by a subsidiary of PepsiCo, which hopes that the US imports will be well positioned to win some of the valuable market from Pringles. Since arriving in Thailand two years ago, Pringles have posted record sales, annually grossing around Bt1bn and comprising 16% of the local potato-chip market. Frito-Lay expects to capitalise on the product's popularity, and produce sales worth Bt120m over the course of next year."The market demand for potato chip products is very high in Thailand," explained the marketing director of Frito-Lay Thailand, Srun Chutharatkul. "Lay's Stax is meant to fill in the production vacuum created by the uneven supply of local potato crops that are used to produce typical bagged Lay's potato chips."He added: "The sales proportion of canned potato chips increased to 20% of the total potato chip industry in 1999, from 11% in 1998 since our products were in short supply. We will not lose sales opportunities any more after adding Lay's Stax."Currently being launched in Argentina and Thailand, Frito Lay has announced plans to release Lay's Sax onto six or seven additional international markets soon.Managing director of Frito-Lay Thailand, Jurmsak Siri-Panich-Gon, explained the choice of the Thai market as a launching base because it suited the ambitious company programme. On the domestic market, Lay's controlled the dominant 58% share, with potato chips accounting for 25% of the total snack market. "Our priority marketing strategy is to expand the potato-chip consumption base to 30% of the total snack market," he said. With this strategy, the company expects to gross revenue of Bt3bn during the next year.
Get full access to all content, just $1 for 30 days
A Message From The Editor
just-food gives you the widest food market coverage.
Paid just-food members have unlimited access to all our exclusive content - including 17 years of archives.
I am so confident you will love complete access to our content that today I can offer you 30 days access for $1.
It’s our best ever membership offer – just for you.
Dean Best, editor of just-food
- Why personalisation will take-off in US food
- US food next wave on display at Winter Fancy Food
- General Mills sales woes continue - analysis
- Comment: Meal kits in US - don't believe the hype
- Column: Kraft Heinz, Unilever and sustainability
- Unilever 'lining up spreads sale'
- UK own-label firm Park Cakes sold in MBO
- Immigration crackdown "risk" for US dairy industry
- BRF plant suspended amid bribery allegations
- Brazil giants JBS, BRF probed over alleged bribery