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October 6, 2010

What matters most: Environment or quiet chip bag?

Discouraging news for those who believe that someday Americans might adopt carbon standards, downsize their cars and stop living in 5,000-square-foot houses. They won't even buy a biodegradable chip bag if it makes crinkly sounds. From the WSJ:

Frito-Lay, the snack giant owned by PepsiCo Inc., says it is pulling most of the biodegradable packaging it uses for its Sun Chips snacks, following an outcry from consumers who complained the new bags were too noisy.

Touted by Frito-Lay as 100% compostable, the packaging, made from biodegradable plant material, began hitting store shelves in January. Sales of the multigrain snack have since tumbled.


Posted by Jay Hancock at 4:34 PM | | Comments (5)
Categories: Marketing
        

Comments

What matters most is that the company generate a return for its investors, anything else is just public relations.

If the product isn't selling and the bag is to blame - you change the bag. As the late Charley Eckman used to say "It's a very simple game."

I wonder how many of the greenies who will inevitably complain about this change have Pepsico stock in their 401-Ks?

If the bags were so noisy how did anyone hear the customer's complaints?

By the way Jay, at the rate Obamanomics is going it appears you will get your wish for an across the board decreased standard of living and the carbon reductions that come with it. It is not at all clear to any sane person why carbon reduction is a priority but if it gives a few people their kicks who am I to judge? I just hope you appreciate that Mother Nature does not care a bit about what our computers say should happen and why or when.

Gary - that is a simple minded approach to this issue. Maybe Frito-Lay didn't do a good job of "changing" the customer on this one or they made an educated guess (that was possibly wrong) by trying to correlate a decline in sales to a handful of morons complaining about their noisy bag. We'll see if those sales climb back up once they change the bag yet again. I doubt they will though. Flip-flopping your production line is expensive and investors should take note of that as well. It' s just not that "simple".

Every chip bag I've ever come across has been loud. How is the new bag really any different? I hate Sunchips, so I'm guessing that sales are down because it's not that great a product.

I think that the earth is mor important than worrying about how much nosie the bag makes

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About Jay Hancock
Jay Hancock has been a financial columnist for The Baltimore Sun since 2001. He has also been The Baltimore Sun's diplomatic correspondent in Washington and its chief economics writer. Before moving to Baltimore in 1994 he worked for The Virginian-Pilot of Norfolk and The Daily Press of Newport News.

His columns appear Tuesdays and Sundays.
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