PepsiCo’s Biodegradable Snack Bag Was A Disaster – At First

PepsiCo’s attempt to boost its snack brands image and perhaps help ease an environmental problem began with the development of a compostable snack bag but nearly ended after a public relations calamity. The biodegradable bag made from plant material was first marketed in 2006 with the SunChips “healthy snack” product, but quickly drew consumer ire because it was a lot noisier than the old bag.  A social media uproar ensured, and the bad publicity created a dilemma for PepsiCo: should they abandon the new bag or push on with it? They pushed on, eventually creating a quieter version. In a business management journal article, Gregory Unruh discusses three lessons that can be drawn from the PepsiCo experience.