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PepsiCo’s snack rebound lifts food division

Financial Times Companies •
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PepsiCo reported a rebound in its salty‑snack segment after cutting prices and launching cleaner‑ingredient variants. Volume for its North American Foods unit climbed 2 % in the first quarter, the first rise in almost three years, and the division still leads the snack market. The move follows a December plan to simplify ingredients and slash prices for shareholders and consumers today.

Earlier this year, PepsiCo cut prices on Doritos, Lay’s, Ruffles and Cheetos by up to 15 % after consumer backlash to inflation. Those brands gained market share against rivals, while Lay’s highlighted its farm‑sourced potatoes in new ads. The company also unveiled fruit‑colored Gatorade variants, pledging to remove artificial dyes while keeping the signature hue for healthier consumption and brand loyalty.

Financially, PepsiCo topped forecasts with revenue up 8.5 % to $19.4 billion and net income rising 27 % to $2.3 billion. The company cited commodity‑hedging programs to shield against volatile oil prices amid the Iran war. Despite a 2.5 % dip in North American beverages, the firm’s European, Middle East and Africa unit grew 9 % in the quarter reflecting steady growth in core markets globally.