Tag Archives: PepsiCo

PepsiCo’s Nooyi to leave post

Indra Nooyi, the long-serving Chief executive Officer of Purchase, New York based PepsiCo is to step down from her post after 12 years.

The 62-year old Nooyi, who has been with the company for 24 years, will cede the CEO role to 54-year old Ramon Laguarta, a Spaniard and 22-year veteran of the soft drinks giant.

PepsiCo’s Q2 profit slumps on sluggish sales of trademark soda

PepsiCo on Tuesday reported a 2.4% revenue growth for the second quarter of 2018 to $16.09bn.

However, the results did not mirror the performance of its North American Beverages unit, its largest segment, which declined by 1% to $5.1bn.

The firm’s North American beverages unit has been posting declining sales for four consecutive quarters (since third quarter of 2017), a worrisome trend for the soda giant to consider operating it as a separate unit or spinning it off into a stand-alone public entity or do what its main rival Coca-Cola has done by refranchising them to multiple franchisees.

PepsiCo reports strong start to year despite struggles with soda business

PepsiCo on Thursday reported its first quarter results for 2018, with revenue growing 4% to $12.6bn from $12bn in 2017. The growth was helped by a 3% sales rise in its Frito-Lay North American snacks business.

On the International front, the company reported strong growth in Latin America and Europe Sub-Saharan Africa, which recorded 14% and 15% growth, respectively.

The soft drinks giant said its Quaker Foods North American division had flat sales, while its North American Beverages unit, which houses its soda drinks declined by 1%.

“North American beverages sector continues to work through some challenges,” said the company’s CEO Indra Nooyi.

PepsiCo sees flat sales and earnings slump in full year as firm struggles with beverage sales

PepsiCo reported a sharp drop in earnings for the full year 2017 by 23% to $4.9bn, blamed on a host of factors including sales decline in its North America Beverages business unit and Quaker Foods North America business segment plus a $2.5bn one-time charge related to the new U.S. tax laws.

Lagging sales in core brands crimp PepsiCo’s 3Q sales

Soft drinks giant PepsiCo said on Tuesday that a focus on healthier and low-calorie drinks may have hurt third quarter sales.

The company’s CEO Indra Nooyi said that the company stocked shelf space with more of its newer, low-calorie drinks and spent too much on marketing promoting them at the expense of its core brands such and Pepsi and Mountain Dew.

PepsiCo, like all soft drinks companies have been playing a balancing act to reformulate its portfolio to reflect changing consumer tastes towards healthier, low-calorie beverages and away from high-calorie drinks. So the company has to weigh between growth of its newer low-calorie drinks and defending its position as the bulk of the firm’s beverage sales still come from its core brands –Pepsi and Mountain Dew.

PepsiCo names Ramon Laguarta President; makes other senior leadership appointments

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PepsiCo on Thursday announced the appointment of Ramon Laguarta, a 20-year veteran of the beverage giant as President, filling the number-two position in the company and a slot that has been vacant since 2014 when the former president, Zein Abdalla left the firm.

In his new role, the 53-year old Laguarta will oversee PepsiCo’s global category groups; its global operations, corporate strategy, and public policy, and government affairs, as well as PepsiCo’s Foundation.

PepsiCo sustains revenue, profit growth with price increases, healthier drinks and snacks

PepsiCo said on Tuesday that price increases implemented on its premium products in North America helped lift sales and profits in the second quarter.

The soft drinks giant recorded a 2% growth in revenue to $15.4bn in the second quarter, while net profit climbed 5% to $2.1bn. Half-year profit grew 17% to $3.4bn. It notes that “guilt-free” drinks which it describes as drinks with fewer than 70 calories such as diet sodas, and foods with lower levels of sodium and saturated fat like baked crisps which now account for about 45% of the its sales helped fuel higher revenue and profit.

PepsiCo’s earnings boosted by higher prices, healthier drinks and snacks

PepsiCo received a strong boost in earnings as higher prices helped lift first quarter results. The company best known for its Pepsi cola brand said that revenue grew 2% to $12bn in the first three months of the year, while profits jumped 41% to $1.32bn, from $931m in the previous year.

The soda giant said that there was a strong demand for its healthier drinks and snacks and it also kept a lid on costs as selling and administrative expenses fell 5% from the previous year’s period.

PepsiCo’s full-year results boosted by North American business unit

PepsiCo on Wednesday reported its fourth quarter and full-year results for 2016, with Q4 revenue rising 5% to $19.5bn, while full year sales came in flat.

The soft drinks giant said that the positive results in the fourth quarter and full year were helped by productivity gains and the impact of efficiency initiatives and lower raw material costs.

Coca-Cola sued in U.S. court for allegedly minimizing the health impact of sugary drinks

Atlanta-based Coca-Cola and the American Beverage Association, a trade group, are being sued in a U.S. court for allegedly misleading consumers about the true health effects of sugary drinks.

A non-profit organization – The Praxis Project accused the beverage giant and the trade group of downplaying the risk of soft drinks on health in order to grow sales, despite evidence from the scientific community linking sugary drinks to obesity, diabetes and cardiovascular disease.