• Ad Age, Friday, November 10, 2006 11:30 AM

PepsiCo is launching a high-energy protein-drink line called Fuelosophy this month that's made specifically for Whole Foods consumers. It follows the Sun Snacks organic line of sunflower-oil chips and cheese puffs, which have been testing in the chain since February. Pepsi is creating these brands--which bear no telltale trace of their corporate lineage and are supported with little marketing--to compete with the homespun, lifestyle-oriented companies that appeal to the Whole Foods shopper.

Distribution in Whole Foods allows big food marketers to test new products without the heavy costs of mainstream launches, and establish much-needed credibility in health and wellness.

"Every company I work with is designing products distinctively different than regular grocery products to appeal to the natural-foods channel," says Steve Gundrum, president-CEO of product-development firm Mattson.

Read the whole story at Ad Age »