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Lay’s Chips Get a Makeover for the MAHA Era; Delta Says Premium Sales Will Soon Top Economy; Levi Strauss Growth ‘Not Happening by Accident’
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Good morning. Today, PepsiCo aims to reposition potato chips; first-class and corporate travelers become one airline’s growth engine; and Levi Strauss credits marketing and direct sales for giving its turnaround traction.
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A new Lay’s bag design trumpets the lack of artificial flavors and dyes. Photo: Kevin Serna for WSJ
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Lay’s iconic yellow bags later this year will start declaring that the chips inside are “made with real potatoes,” Laura Cooper reports.
That’s always been true, and the classic packaging already pictured a potato turning into chips, but parent company PepsiCo believes Lay’s can drive the point home further. Its evidence includes 2021 consumer research that found 42% of people didn’t know the chips were made from real potatoes.
The company also wants Lay’s to appear healthier, so some varieties will start frying in olive or avocado oil instead of seed and corn oils, while barbecue flavors will eliminate artificial coloring.
For years PepsiCo has gradually reduced the sodium, saturated fat and sugar content in its products. But pressure is growing on food makers to make more drastic changes. The Make America Healthy Again movement championed by Health Secretary Robert F. Kennedy Jr. has gained sway in Washington, taking aim at artificial colors and seed oils.
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Photo: robertfkennedyjr/Instagram
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As an aside, there’s one RFK Jr. stance I feel confident predicting won’t catch on: working out in jeans. [WSJ]
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Content from our sponsor: Deloitte
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Regional Banks Could Lead Private Credit Push
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Innovative strategic arrangements are reshaping the lending landscape and positioning regional banks for sustainable growth. Read More
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Higher-income travelers are giving Delta a boost, the company said. Photo: Mike Segar/Reuters
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Delta Air Lines expects its rapidly expanding luxury and corporate business to overtake its economy-class sales by 2027, and maybe even for a quarter or two next year, Dean Seal writes.
“Much of our growth, if not all of it, will be in the premium sectors,” Delta President Glenn Hauenstein said on a call with analysts to discuss the company’s latest results.
Delta credited premium cabin demand, corporate travel and loyalty customers for a 6% increase in revenue for the third quarter.
The carrier caters to higher-earning consumers who are still spending despite signs of turmoil in the economy and seeking out travel.
“Their number-one objective is to travel,” CEO Ed Bastian said. “It’s to go out and adventure, to invest in themselves, to invest in the experience economy.”
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“We wanted to put it out there and hopefully inspire others in the industry along the way.”
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— Stacey McCormick, chief marketing officer at American Eagle brand Aerie, on the brand’s new “100% Aerie real” campaign promising not to use AI in its ads or their creation
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Levi Strauss has been working to increase direct sales to consumers as well as to broaden beyond denim. Photo: Andrew Kelly/Reuters
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Levi Strauss & Co. raised its fiscal-year outlook as the company’s focus on its direct-to-consumer business and broader brand turnaround continue to catch on with shoppers, Conor Hart reports.
“This is not happening by accident,” Chief Financial Officer Harmit Singh said Thursday on an earnings call. “We narrowed our focus, exited low-margin brands and really doubled down on Levi’s.”
Higher overall revenue was led by an 11% rise in direct-to-consumer sales, Singh said, while the company’s wholesale business grew 3%.
The company’s effort to reposition itself as a lifestyle brand is also gaining momentum, with a growing share of sales coming from products beyond jeans. Marketing including deals with Beyoncé and Shaboozey has been key to that expansion, Singh said.
Next year the company plans ads tied to the Super Bowl and FIFA World Cup matches at Levi’s Stadium in California.
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15,440
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Hours that former “Million Dollar Listing” star Ryan Serhant says his company’s generative AI platform has saved its real-estate agents so far, helping the firm achieve $5 billion in closed sales volume in the first half of this year
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The WSJ CMO Council Summit
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This Nov. 18 and 19, CMOs will gather in New York for The WSJ CMO Summit to explore fan-fueled growth, AI in marketing and the evolving CMO–CEO partnership. Join the CMO Council and be part of the conversation shaping the future of marketing leadership.
Request Invitation
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Kendrick Lamar performed ‘Not Like Us’ as part of his Super Bowl halftime show in February. Photo: Frank Franklin II/Associated Press
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A federal judge dismissed Drake’s defamation lawsuit against Universal Music Group over Kendrick Lamar’s hit diss track “Not Like Us.” [WSJ]
A Zach Bryan lyric about ICE has become another political battleground. [WSJ]
Turning Point USA, the conservative political organization co-founded by Charlie Kirk, said it will counterprogram Bad Bunny’s coming Super Bowl halftime show with its own “All American Halftime Show”—performers to be announced. [Deadline]
A Burger King ad campaign in Brazil depicts babies reaching longingly for their parents’ fast food. [Creative Bloq]
Tyra Banks says she has finally perfected “hot ice cream” at her Sydney, Australia, dessert shop Smize & Dream. People have some questions. [Vibe]
Gen Z’s version of the “lipstick index,” the notion that sales of affordable luxury items like lipstick pick up during economic uncertainty, may have more to do with matcha. [BI]
The U.K. competition enforcer labeled Google as a company it needs to keep a close eye on due to its ubiquitous search engine and lucrative search-advertising business. [WSJ]
Los Angeles Times journalists frustrated by three years of inconclusive contract talks voted to give their union authority to call a strike. [THR]
British activewear brand Gymshark is opening stores in the U.S. [Modern Retail]
WNBA star Angel Reese next week will be the first pro athlete to join the Victoria’s Secret Fashion Show. [Sports Illustrated]
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