In recent news, PepsiCo reported lower-than-expected revenue for the second quarter, as demand for its snacks and sodas declined, particularly in the U.S., its largest market.
Inflation-weary consumers have been reducing spending on these products, opting for smaller pack sizes and cheaper alternatives due to higher prices from branded food companies.
Despite a 5% increase in average prices, PepsiCo experienced a 3% decline in organic volume. To counter this, the company has increased promotional efforts to stimulate growth. Sales from its North American beverages and Frito-Lay units continued to be significant contributors to overall revenue.
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PepsiCo’s net revenue rose to $22.50 billion, slightly missing analysts’ expectations of $22.57 billion. However, net income attributable to the company increased to $3.08 billion.
The company continues to navigate a challenging market environment, focusing on strategies to boost consumer demand and maintain revenue growth.
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