Once registered, you can:

  • - Read additional free articles each month
  • - Comment on articles and featured creative work
  • - Get our curated newsletters delivered to your inbox

By registering you agree to our privacy policy, terms & conditions and to receive occasional emails from Ad Age. You may unsubscribe at any time.

Are you a print subscriber? Activate your account.


By Published on .

The "Power of One" is becoming more than a PepsiCo catchphrase.

Ten months after putting an executive in charge of its initiative to leverage the combined strength of its Frito-Lay snack foods and Pepsi-Cola beverages, the marketer is said to be realizing results.

Although the phrase has been around for a few years at PepsiCo, it was taken more seriously after the company spun off its fast-food chains.

Jennifer Solomon, an analyst with Salomon Smith Barney, said soft-drink and snack sales in one supermarket jumped 21% after PepsiCo tinkered with displays to create a "profit aisle."

The aisle, a major tactic in Power of One, jointly merchandises snacks and soft drinks down and between both sides of a grocery aisle.

While chips and soda may appear to be an obvious marriage, the two are paired in only 40% of U.S. supermarkets. Ms. Solomon said PepsiCo has found that with no special marketing efforts at joint promotions, the profit aisles add 4 points in soft-drink sales growth and 3 points in salty snacks.

The company is adding these aisles to more than 70 individual supermarket locations in the next few months. That's a small number in the universe of U.S. supermarkets, but a significant measure of PepsiCo's care with the strategy, Ms. Solomon said.


"This process really takes time. The mistake Pepsi's made in the past . . . was to kind of gear up on things and then not stick with it," she said.

The initiative gives PepsiCo an edge over archrival Coca-Cola Co., which doesn't have salty snacks in its portfolio.

"Power of One is all about leveraging the fact Pepsi accounts for an average 3% of supermarket sales," Ms. Solomon said, who noted in a recent report that Coca-Cola represents a 1.8% share of supermarket sales.

Coca-Cola couldn't be reached at press time.

The executive in charge of the Power of One market activities is 18-year Frito-Lay veteran Al Carey, who as senior VP-retailer strategies reports to PepsiCo Chairman-CEO Roger Enrico.

It's unclear how the Power of One strategy will play out in advertising strategy. But a company spokesman said PepsiCo has been taking steps to "add one plus one and get three."

Last month, the company moved media buying duties for its acquired Tropicana

Most Popular
In this article: