Corporate Profiles - 2020 - 55

PEPSICO

love, delivered right to their door," said Michael Lindsey, chief transformation
and strategy officer for Frito-Lay North America. "Snacks.com provides our
incredibly loyal Frito-Lay shoppers with beloved products like Lay's Classic potato chips, Doritos Cool Ranch flavored tortilla chips and Flamin' Hot
Cheetos so they can quickly and conveniently fill their pantries."
The new initiative is in response to consumers using online ordering
more in the wake of the COVID-19 outbreak, according to the company.
Beyond Meat's DTC platform features a variety of plant-based meat
alternatives along with new bulk packs, mixed product bundles, limitedtime offers, trial packs and more, the company said.
And while much of the focus during the year has been on retail ecommerce, digital trends in the foodservice sector are evolving as well as
operators have sought growth opportunities. App-based ordering, delivery options and the emergence of ghost kitchens, "restaurants" without
physical footprints are all growing.
US Foods Holding Corp. developed a ghost kitchen program for
foodservice operators interested in creating a new revenue stream.
The US Foods program is designed to streamline the development
process by identifying menu opportunities, including food costing,
providing marketing support and guiding operators through the decision-making process. Due to COVID-19, 75% of restaurant operators
consider off-premises dining to be their best
opportunity, according to US Foods.
Panera Bread Co. is using digital technology to make it easier for consumers to
order through Google Search, Google Maps
and Google Assistant. The integration with
Google's platforms expands Panera's offpremises capabilities and accessibility to meet
customers where they are.

PepsiCo launched two DTC e-commerce platforms during the year.

stores and in e-commerce, truly the omnichannel concept of the future."
Before COVID-19, 19% of Americans purchased edible groceries online in the past three months, according to The NPD Group, Port
Washington, NY. The percentage more than doubled to 40% by May.
Older consumers are the fastest-growing adopters of e-commerce this year.
"This is not just existing techno-savvy, young, affluent, e-commerce
consumers who have doubled down on their
e-commerce activity," he said. "This is truly a
broadening of the face of consumers that are
using e-commerce."
Older consumers have found benefits in
e-commerce such as a contactless means of
acquiring necessary goods.
"Now is that going to change just because
the pandemic goes away?" Mr. Portalatin
said. "I don't think so. I think as people, when
we grow, when we stretch, we build up our
- David Portalatin,
muscles, we gain new capabilities. We're goThe NPD Group, Inc.
ing to continue to use those capabilities."
He expects the resurgence in at-home eating, which increased to 80% of eating occasions in the United States, to
remain popular even after the global pandemic fades. People are making
investments in in-home meal preparation by buying items like pasta machines, breadmakers, sandwich presses, pizza ovens and soda machines.
Brick-and-mortar stores could evolve in the COVID-19 era. Certain
sections of the store could become fully dedicated to expediting online
orders. Some grocery stores even could transform into "dark stores" and
be fully dedicated to online orders. He compared "dark stores" to "ghost
kitchens" that solely exist to prepare restaurant meals for delivery. Cooking technique demonstrations or wine pairings also could take place in
brick-and-mortar stores.
"We have an opportunity to change what exactly happens within the
four walls of that brick-and mortar store," Mr. Portalatin said. CP

'We've probably leapt
five years ahead into
the future in a very
short period of time.'

ACCELERATED DIGITAL GROWTH
The volume of e-commerce transactions in
the United States for the second quarter of calendar 2020 was remarkable. Sales during the
period were estimated at $211.5 billion, up 32% when compared with the
first quarter of 2020 and up 45% when compared with the same period during 2019, according to the Census Bureau of the Department of Commerce.
E-commerce made up 16% of total retail sales of $1.3 trillion during
the period. For context, during the first quarter of 2020 e-commerce
was 12% of total retail sales and 11% of retail sales during the second
quarter of 2019.
"We've probably leapt five years ahead into the future in a very short
period of time," said David Portalatin, vice president and industry adviser for The NPD Group, Inc., in the Trends and Innovations virtual event
hosted by Food Business News in August. "Many of the things that we
were talking about before have really intensified and come into focus. The
future really is now in terms of how we go to market differently both in

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Corporate Profiles - 2020

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