Procter & Gamble to Unveil New Snack Chips

Procter & Gamble Co., taking on No. 1 snack maker Frito-Lay, this week will start selling curved tortilla chips in canisters in the U.S. this month as it tries to reverse declining food sales.

Procter & Gamble, the maker of Pringles potato chips, will market the Torengos chips in triangular canisters similar to its round Pringles cans. The company plans television, newspaper and direct-mail advertising that will claim the chips break less frequently and are shaped for easy dipping, brand manager Debra Lutz said. Spending for the campaign wasn’t disclosed.

Chief Executive A.G. Lafley said in October that he is determined to revive the company’s sagging food unit, whose sales fell 11% last year. That won’t be easy in the $2.17-billion-a-year U.S. tortilla-chip category, where Frito-Lay’s Doritos and Tostitos are the top two brands. Frito-Lay is owned by beverage seller PepsiCo Inc.

“The shape of the canister may attract some attention,” said Tom Vierhile, general manager of Marketing Intelligence, a research firm that tracks new products.

“Frito-Lay owns that whole area of the supermarket,” he said. “It’s tough to break in.”

Executives at Cincinnati-based Procter & Gamble, who say they typically want a brand to be among the top three in a category, won’t disclose sales goals for Torengos.

Frito-Lay spokeswoman Lynn Markley declined to comment.

Frito-Lay sold 82% of the tortilla chips bought in the U.S. in the 52 weeks ended Oct. 7, according to research firm Information Resources Inc. In the $3.16-billion-a-year potato-chip market, Pringles’ 14% share lagged Frito-Lay’s 59% for its Lay’s and Ruffles lines.