PepsiCo had such a blowout year that 2023 will be a hard act to follow. But company officials speaking at the Consumer Analysts Group of New York meeting on Feb. 21 seem confident that 2024 will see another record in sales and profitability.
Net revenues in 2023 were $91.4 billion, up 6% from the previous year (which itself was a record). Net income was nearly $9.1 billion, up 2%, and also a record. Latin America was the standout, with sales up 19%. Frito Lay North America grew 7% and beverages increased 5%. Quaker Foods saw a 2% drop, and Africa, Middle East and South Asia also declined, by 5%.
Company sales are now 59% in convenient foods and 41% in beverages; 61% of sales are in North America
“Where do we go from here?” asked Ramon Laguarta, chairman and CEO. His answer at first was simple, probably guarded: expand convenient food into more convenient food occasions, and expand beverages across beverage occasions. But he expanded:
They’re trying to move snack products into meal occasions; Frito-Lay brands have been on dips and salsas. Expanding beverages has meant licensing the Starbucks name for ready-to-drink coffee beverages, and licensing-out the Mountain Dew brand for alcoholic drinks. Gatorade has lent its name and sports hydration reputation to stick packs, gels, even tablets you drop into a water bottle. Recent acquisition Muscle Milk came out with a protein powder.
