Why Lay’s Pulled Off Its Biggest Rebrand in Nearly 100 Years

Lay’s is making one thing clear with what it’s calling the biggest rebrand in its 100-year history: potato chips come from potatoes. While that fact may seem obvious, the PepsiCo-owned brand found that 42 percent of Lay’s consumers didn’t realize their chips were made from real farm-grown potatoes—hence a design that put the vegetable front and center.

“That insight sparked the need to tell our food story more boldly and authentically,” Denise Truelove, SVP of marketing at PepsiCo Foods US, told Inc.

Known for its distinct yellow sun enveloped by a red ribbon logo, the PepsiCo-owned brand kept its iconic elements while making clearer its farm-to-bag story. The new logo maintains the iconic red ribbon while making the sun more distinguishable by adding warmth and sun-rays. Below that logo, the new bags read “made with real potatoes.”

The legacy brand’s sales were slipping, hinting towards a need for a refresh. According to the Wall Street Journal, Lay’s—which launched in its first iteration in 1932—amounts for around 60 percent of PepsiCo’s annual sales, yet its quarterly growth has slowed down since 2022.

“It was definitely something that was needed,” Leslie Zane, expert marketer and founder of Triggers, a brand consultancy firm, says. “This happens very often to big brands when they stop reinforcing what their story is. They stop talking about the product. They stop talking about what goes into them and all the goodness.”

Lay’s is focused on reframing its narrative to remind consumers of its story—its potato chips come from family-owned potato farms across the globe. But rebrands don’t always go so well. Here’s how to pull one off.

Respect the brand

Cracker Barrel’s recent redesign sparked customer outcry because of its streamlined design, which left behind the most beloved elements of the brand and its history. Shortly after the reveal, the brand reverted back to its original design.

“Brands are precious assets. They are incredibly precious, and if you don’t respect them, you are going to make a mistake,” Zane says. “Marketers come in, ad agencies come in, design firms come in, and they’re like, ‘Let’s go modernize.’ The idea of modernizations is that we should transform and make something better, but they actually don’t end up making things better.”

While complete rebrands and redesign should be done sparingly, not just as a response to declining numbers, Zane emphasizes a brand’s need to identify its distinctive brand assets prior to redesigning.

“If you take away something that’s in people’s memories, you’re taking away the connection between the consumer and the brand,” Zane added. “You’re severing the relationship between the brand and the consumer, which is the last thing you want to do.”

Keep, stop, add

For redesigns to work, they must keep what works, stop negative associations, and add new positive meanings, Zane explains, a formula her consultancy firm applies to redesigns.

Moving forward, Lay’s is following consumer preferences by focusing on the “natural” elements of its products, at the heel of a growing health-conscious movement. For instance, while its portfolio is already 60 percent free of artificial colors, it is also putting natural ingredients front and center in its branding.

“Brands should not change for the sake of change; they should anchor every rebrand in consumer insight and feedback,” Truelove adds. “Successful change isn’t about chasing trends—it’s about strengthening clarity and connection while preserving what people love.”