Since the early-1990s, PepsiCo has sold $1B+ of Doritos a year.
Why is the chip so addictive? From the ingredients to cooking method to texture, its engineered to pull all the psychological levers to make you crave the snack.
Here’s a breakdown 🧵
Doritos are a good way to understand junk food. For ages, humans have taken natural ingredients and processed them to be more addictive:
◻️Grapes to wine
◻️Coca leaves to cocaine
◻️Opium poppy to heroin
This is a helpful way to help understand "corn to Doritos".
A common junk food trait is the combination of fat and sugar. In nature, these compounds are rarely found combined.
There are a myriad of ways to mix them in standard cooking but the snack industry turned the combo of sugar and fat into a science.
Here are 6 ways Doritos do it:
#1 - Ideal fat content
Speaking of fat and sugar, Doritos have nearly a perfectly balanced mix.
The top 2 ingredients are corn (carb) and vegetable oils (fat). The calories in a Doritos chip is split almost exactly 50/50 between carb and fat (each bag has 3 ears of corn).
#2 - Cooking method
Humans have developed a craving for compounds that come out of the cooking process. Doritos satisfies this craving by hitting you with multiple levels of cooking:
◻️the corn kernels are boiled
◻️corn mashed into paste
◻️corn chip toasted + deep fried
#3 - Seasoning
A Doritos chip is dusted w/ a long list of flavour enhancers:
◻️MSG
◻️Sugar, Salt
◻️disodium inosinate / guanylate
◻️garlic/pepper/tomato/onion powder
This mix is called “non-specific aroma”. No flavor is dominant enough to cause satiety (feeling full).
#4 - Salivation
Doritos have lactic and citric acid. Both of these acids get your saliva flowing, which increase your desire to eat.
You know what else makes you salivate? Cheese, and Doritos has a ton including romano, cheddar and parmesan (it uses milk from 10k cows a year).
#5 - Contrasting texture
A Doritos bite starts with a crunch.
But it quickly dissolves in your mouth.
This is a phenomenon known as “vanishing caloric density”. The feeing of food “vanishingly in your mouth signals to the brain that you “need” more.
#6 - The Finale
Doritos ingredients are combined in a process known as "flour grinding", which creates a very fine powder.
The powder completely covers the chip and leaves a dusting on your fingers. That finger dust is 5x more concentrated and is one helluva way to end a bag.
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If you are the person that did the un-aligned letters for the previous eBay logo, please contact the research app team. We are huge fans of how un-aligned the “e” is with the “y”.Bearly.AI
This article offers up reasons for popularity of simple font logos (mostly Sans Serif):
— Easier to standardize ads across mediums
— Improves readability (especially on mobile)
— The “brand” matters more than the logo velvetshark.com/why-do-brands-…
Berkshire Hathaway board member Chris Davis once asked Charlie Munger why Costco didn’t drop the membership card.
Let anyone shop and raise prices by 2% (still great value), thus making up for lost membership fees (and more).
Munger said the card is important filter:
▫️“Think about who you’re keeping out [with a membership card]. Think about the cohort that won’t give you their license and their ID and get their picture taken.
Or they aren’t organized enough to do it, or they can’t do the math to realize [the value]…that cohort will have a 100% of your shoplifters and a 100% of your thieves. Now, it’ll also have most of your small tickets.
And that cohort relative to the US population will probably be shrinking as a % of GDP relative to the people that can do the math [on Costco’s value].”▫️
I have a membership but have been guffing on the math for a few years tbh. They keep telling me to upgrade from Gold to Business but I’m too lazy (even if the 2-3% Cash Back on Business pays back after a few trips).
This is a long way of saying Costco’s membership price hike effective today — its first in 7 years — is annoying but when I decide to do the math in a few months, it’ll be worth it.
Anyway, here is something I wrote about Costco’s $9B+ clothing business my affinity for Kirkland-branded socks and Puma gym shirts. readtrung.com/p/costcos-9b-c…
Two notes:
▫️Meant “Executive” (not “Business”) membership
▫️Chris Davis was doing a pure thought experiment. Costco membership obvi high margin (on~$5B a year) and accounts for majority of Costco profits. Retail margin is tiny on ~$230B of annual sales (Costco would need like another $150B+ from letting anyone shop to make up membership profits)
One of the Team USA rowers who won a Gold Medal is an investment banker and actually did the “B2B SaaS Sales” joke on Linkedin. Legend.
Here’s the rest of the post (perfectly formatted to show up in the feed as a shitpost): linkedin.com/feed/update/ur…
Justin if you’re reading this and are available for consulting, the research app team would love to engage your B2B SaaS knowledge for our Q4 sales roadmapBearly.AI