Dive Brief:

• PepsiCo's Frito-Lay division launched its first online holiday shop where consumers can buy snack-themed gifts and apparel, including sweaters, beanies, knit scarves and fuzzy socks, the company said in a press release. When customers buy merchandise featuring Cheetos, Tostitos and other snack brands, they'll also receive a corresponding snack with their purchase.
• As part of the marketer's holiday efforts, it's bringing back an ad that debuted last year and features actress Anna Kendrick singing a snack-themed parody of perennial favorite "My Favorite Things."
• Frito-Lay holiday-themed packaging will also be available across the country, and the marketer will donate up to $500,000 to Toys for Tots, per the press release.

Dive Insight:

Frito-Lay's new holiday campaign stems from the success of last year's "Share Your Favorite Things" ad, which garnered inquiries about how consumers could purchase items featured in the spot, Rachel Ferdinando, senior vice president and chief marketing officer of Frito-Lay North America, said in a statement. The ad, which was the first holiday campaign for the PepsiCo subsidiary when it aired last year, still holds up even as the COVID-19 pandemic calls for alternative celebrations this year, with its focus on the joy of home-based holiday activities like watching movies, building a snowman and snacking.

Resurfacing an ad that was filmed last year also meant Frito-Lay could avoid the challenges around creating a new spot as coronavirus rates are on the upswing, making in-person productions difficult.

With its online gift shop, Frito-Lay is also putting a bigger focus on e-commerce this holiday season as consumers stick close to home, a trend that has been apparent across consumer packaged goods brands, with PepsiCo making one of the bigger commitments to it. Another driving factor behind the e-commerce push is marketers looking to beef up their first-party data about shoppers.

Frito-Lay aims to offer convenience to consumers shopping online for the holidays this year, the press release states. The marketer's internal research shows that 77% of people are likely to purchase snacks online during the holidays and 50% of Americans are planning to shop for their holiday groceries through an online retailer, up from 15% just a year ago.

The online holiday shop follows PepsiCo's establishment of two direct-to-consumer websites where consumers can buy its products. The sites, which launched earlier this year, offer a range of Frito-Lay products, including Tostitos, Cheetos, Ruffles and Lay's.

The snack company is among other brands, including McDonald's, General Mills and Sour Patch Kids, that have released their own branded apparel and other merchandise to cater to hardcore fans. Last year, Red Lobster also introduced ugly holiday sweaters, T-shirts and fanny packs in its own online shop.