Los Angeles — PepsiCo’s snacks are having to pick up more of the slack for its ailing beverages. The company posted sales and earnings that topped analysts’ estimates last quarter, helped by an uptick in volume at its Frito-Lay business in North America. The snack growth helped offset continued declines at company’s drinks business. Still, a disappointing forecast suggests that PepsiCo has more struggles ahead. The story is familiar: as sugar-wary consumers turn away from sweet beverages, the company has relied more on food to bolster results. The maker of Mountain Dew and Cheetos is also benefiting from cost cuts, with CEO Indra Nooyi pursuing at least $1bn in annual savings. "We delivered these results in the midst of a dynamic retail environment and rapidly shifting consumer landscape," Nooyi said in a statement. PepsiCo’s success with snacks is a sign that Frito Lay is innovating — examples include Organic Doritos and yoghurt-based crackers — while simultaneously strengthening i...

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