July 16, 2018
In lieu of the customer demand for healthier foods, the demand for sweet and sugary drinks has gone down considerably. Taking this as an opportunity, the giant PepsiCo is gaining sales owing to its snack products like Frito-Lay chips and Quaker oatmeal and but not the soda business.
The report further expressed that the main earnings of PepsiCo per share in the second quarter were $1.61, 9 cents which sent up the shares to 1.6% during the early trade. Further, the stock for PepsiCo closed at $107.76 in the city of New York and went down 10% for the year. The report also says that as consumers look to healthier options, the carbonated drinks’ consumption has gone down to a 32 year low in the US. Adding to this, the report also says that even though the food brands are going strong, that hasn’t stopped PepsiCo from introducing organic snacks.
In India, the new head of PepsiCo, Ahmed El Sheikh had said two months ago that while carbonated beverages was the integral part of their business but it wasn’t the fastest growing category.
While in North America, Indira Nooyi, CEO of PepsiCo has said that while the struggle goes on with the beverage sector, the sales are being boosted thanks to their food brands.