PURCHASE, NY. -- A wide range of new products from Frito-Lay North America introduced recently include The Walking Taco, an innovation the company said was inspired by street food and festivals. The span of innovation unveiled by Frito-Lay and Quaker Foods was described in PepsiCo, Inc. management comments issued July 13 in connection with second-quarter financial results.

As previously reported, PepsiCo net income for the second quarter ended June 17 was $2.75 billion, equal to $1.99 per share on the common stock, up 9.2% from $1.43 billion, or $1.03 per share, in the prior-year period. 

In the management remarks, PepsiCo said The Walking Taco will extend its brands “into different dayparts and occasions such as Doritos After Dark, a late-night culinary experience with unique menu items from Doritos-inspired recipes.”

To be sold under the Doritos, Fritos and Tostitos brands with a package conducive to adding toppings and suitable for “on-the-go” eating, The Walking Taco will be offered at concession stands, convenience stores and colleges.

In addition to The Walking Taco, Frito-Lay is looking at a multi-dimensional approach to innovation beyond just new products/varieties, management said. The company said it is moving to meet the “changing needs and taste preferences of consumers” with a variety of introductions, including its baked, “Simply” and lightly salted options, as well as smaller pack sizes “to satisfy consumer demand for portion control.”

Regarding packaging options, management said the company has stepped up its multipack and variety pack options and recently introduced Frito-Lay Minis, bite-size versions of Doritos, Cheetos and Sun Chips packaged in an easy-to-pour canister. More varieties are anticipated in the future.

Along its core portfolio, management said Frito-Lay will be introducing “bolder and spicier flavor combinations… to address societal preferences.” Examples cited were Flamin’ Hot varieties of Doritos, Cheetos, Funyuns, Fritos and Chester’s.

Operating profit for Frito-Lay North America advanced 15% to $1.65 billion, and revenue rose 14% to $5.9 billion. Organic revenue also grew 14%, marking the seventh consecutive quarter of double-digit organic revenue growth, according to the company. Continued top-line momentum was led by a diversified portfolio, marketplace execution and net revenue management capabilities, according to the company.

Management said the core operating profit growth was achieved despite a “significant increase in advertising and marketing spend,” adding that planned business investments going forward are expected to be up as well.

Numerous wins were marked in PepsiCo’s Quaker Foods business in the second quarter, and management described a robust new product pipeline.

“We gained share in the pancake mix, pancake syrup, grits, rice and pasta and lite snacks categories, and delivered double-digit net revenue growth in the lite snacks, grits, cookies, and pancake syrups and mixes categories,” management said. “In addition, the business continues to innovate and extend its brands to serve multiple dayparts and occasions.”

New products highlighted by PepsiCo management included Quaker Chewy Granola, Marias Gamesa cereal, Cap’n Crunch Instant Oatmeal made with Quaker Oats, Fruit Fusion Instant Quaker Oatmeal, Cap’n Crunch Original Crunch Treats Cereal Bars, and Near East Heat & Eat Rice Pilaf and Long Grain & Wild Rice.

Quaker Foods North America operating profit fell 5% to $129 million, while revenue of $684 million was up 1% from the prior year. Organic revenue increased 2%. PepsiCo gained share in the pancake mix, pancake syrup, grits, rice and pasta and light snacks categories and delivered double-digit revenue growth in light snacks, grits, cookies, and pancake syrups and mixes.

Of the drop in its quarterly operating profit, PepsiCo said the decrease was due to a “strong double-digit increase in advertising and marketing spend.”

Quaker’s core operating profit declined and reflects a strong double-digit increase in advertising and marketing spend.