For struggling soda companies like PepsiCo, munchies, not fizzies, are the business of the future.
The beverage giant posted yet another quarter of mixed results, after quarter upon quarter of dowdy sales of carbonated drinks, especially in the US. Beverage sales, which make up roughly half of PepsiCo’s global business, are becoming a bigger and bigger sore spot as soda sales decline in the company’s major markets. Soda consumption has been falling since its peak in 2005 in the US and tapering in emerging markets.
And yet, Pepsi’s profit estimates beat the street, saved by the likes of potato chips and granola bars. The company’s snack sales jumped 3% in the Americas and nearly 10% in emerging markets including China, Brazil, Mexico and Turkey.