Pepsi’s profit mainly from chips and cereals as people consume fewer fizzy drinks
New York — PepsiCo, grappling with a slumping softdrinks business, got another boost from its food operations. The maker of Mountain Dew posted second-quarter profit that topped analysts’ estimates, helped by strong sales of Frito-Lay chips and Quaker cereals, according to a statement on Tuesday. Core earnings per share were $1.61, nine US cents above analysts’ consensus estimate. Pepsi, like rival Coca-Cola, is looking beyond sugary softdrinks to drive growth as consumers become more health conscious. CEO Indra Nooyi has said fixing the struggling North American beverage unit is a top priority, but in the meantime the company is getting a boost from its food brands. Pepsi’s North America beverage division has been under pressure as consumer tastes shift away from colas. Consumption of carbonated soft drinks fell to a 32-year low in the US in 2017, according to Beverage-Digest, a trade publication. Consumers who have moved away from sugar-laden softdrinks haven’t made the same moves...
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