PepsiCo Pushes Into Refrigerated Aisle With Gazpacho and Guacamole

By Tom Whitfield

PepsiCo launched its Spanish chilled-soup brand Alvalle in the United States for the first time this year, staking its next phase of growth on the refrigerated case rather than the snack aisle. The rollout began at select Whole Foods Market stores in August, where PepsiCo is testing how different Alvalle SKUs perform in different sections of the store.

The Alvalle move is not an isolated experiment. PepsiCo also entered refrigerated dips this year with a line of Tostitos-branded chunky guacamole, including a mild hint-of-lime flavored variety, extending a brand long associated with shelf-stable chips into the chilled perimeter.

For retail and shopper-marketing practitioners, the shift matters because it moves PepsiCo into store zones — refrigerated meals and fresh dips — that carry different merchandising rules, cold-chain requirements and shopper missions than the center store the company has dominated for decades.

Why is PepsiCo chasing the cold case?

The push follows broader changes to PepsiCo's merchandising strategy designed to lift sales. Among them:

• Price cuts on items to attract price-sensitive consumers
• A planned reduction of roughly 20% of its SKUs as the CPG giant searches for new growth levers
• Expanded distribution tests across multiple store sections, starting with Alvalle at Whole Foods

The company's latest earnings show why the pressure is real. Soda and chips sales are underperforming, squeezed by inflation and by consumers' shifting diets, as reported by The New York Times in October.

Marisa Perez, senior vp and general manager of the Fresh Experiences Portfolio at PepsiCo Foods North America, told Modern Retail that the parent company views refrigerated meals and snacks as a big opportunity to cater to changing consumer tastes.

What does the fresh push change for retailers?

For grocers, a PepsiCo entry into chilled soups and dips means a major center-store vendor now competes for refrigerated shelf space alongside deli and fresh-prepared brands. Placement decisions become a live test: PepsiCo is explicitly watching how Alvalle's various SKUs perform in different sections of the store before it scales further.

The Whole Foods launch gives PepsiCo a curated, fresh-forward proving ground. A successful run there would strengthen the case for broader distribution into conventional grocers' refrigerated sets, where Tostitos guacamole already gives the company a second door into the case.

The bet carries risk. Fresh and refrigerated products demand shorter shelf lives, tighter logistics and more disciplined markdown management than PepsiCo's traditional portfolio. The company has not disclosed sales targets for either Alvalle or the Tostitos dip line.

Still, the direction is clear. With pricing pressure, a 20% SKU rationalization and soft soda and chips sales, PepsiCo is trading familiar shelf-stable territory for the refrigerated aisle — and the Whole Foods test will show whether shoppers follow the brand from the chip rack to the cold case.

(This article is based on reporting by Modern Retail.)