With consumers looking out for healthier options, the demand for sugary drinks have gone down significantly. In such a scenario, the giant PepsiCo is gaining sales owing to its snack products like Frito-Lay chips and Quaker oatmeal and not the soda business reports the Economic Times.
The Soda Industry Takes A Hit
The report further says that the core earnings of PepsiCo per share in the second quarter was $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. 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, the Chief Executive Officer of PepsiCo has said that while the struggle goes on with the beverage sector, the sales are being boosted thanks to their food brands reports the Economic Times. 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 says Beverage Digest. 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.