PepsiCo’s most recent quarterly earnings report showed growth internationally, but volume in North America declined for the mega CPG company.
Earnings and revenue both beat analysts’ expectations, with the company pulling in $23.94 billion in revenue for the third quarter, up 2.6%. Net income was $2.6 billion — but that figure was lower than the $2.93 billion the company posted a year ago.
Worldwide volume for PepsiCo’s products fell 1%, however, and CEO Ramon Laguarta attributed that to smaller packaging sizing targeting price-conscious consumers. Worse yet, Pepsi Foods North America reportedly saw volume drop 4% this quarter, and Pepsi’s North American beverage unit experienced a 3% volume dip.
The company is looking at additional ways to improve its results in North America, such as aggressively reducing costs, accelerating innovation and sharpening its price pack architecture initiatives, according to Laguarta.
Andy Hanacek has covered meat, poultry, bakery and snack foods as a B2B editor for nearly 20 years, and has toured hundreds of processing plants and food companies, sharing stories of innovation and technological advancement throughout the food supply chain. In 2018, he won a Folio:Eddie Award for his unique "From the Editor's Desk" video blogs, and he has brought home additional awards from Folio and ASBPE over the years. In addition, Hanacek led the Meat Industry Hall of Fame for several years and was vice president of communications for We R Food Safety, a food safety software and consulting company.
