Food

Snack smacked: Pepsi PH suffers P341M loss from ill-fated Cheetos move

Pepsi-Cola Products Philippines Inc. failed miserably in its move to face head on local snack food giants Universal Robina of the Gokongweis and Oishi of Carlos Chan in their home turf.

Pepsi Philippines, which is controlled by South Korean giant Lotte group, closed down its Cheetos snack production in September 2019 “to focus on and strengthen the company’s core business categories….specifically, in the beverage space which has been the bottling giant’s core business for 70 years.”

But in its latest report, Pepsi revealed that it swallowed a combined P341 million loss from the ill-fated Cheetos business in three years – P119.23 millon in 2017, P77.38 million in 2018, and P143.74 million in 2019.

Pepsi opened its Cheetos production line in Cabuyao, Laguna in 2015 to produce snack brands such as Lays, Doritos, Ruffles, Fritos, and Tostitos.

But after four years, Pepsi realized Jack & Jill and Oisihi snack brands were no pushovers and that it was better off importing Cheetos and other its other snacks into the country.

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