Bytes has remained a low-volume and low-margin business. It could not match the volumes which salted snacks brands such as Frito Lay's had garnered and gross margins have continued to be under pressure.

Why did they stop making bytes?

Why the snack was discontinued

Bytes was no match to the kind of market Frito Lays commanded and there was constant pressure on the gross margins. Kraft also spent most of its effort in marketing iconic products such as Oreo cookies and Tang, instead of pushing resources into an indigenous brand such as Bytes.

Why did Cadbury Bytes fail?

According to FMCG analysts, while there was no problem with the product, Bytes has remained a low-volume and low-margin business. ... Besides, there were intense manufacturing costs involved with the product which might have led to lack of profits.