NEW PRODUCTS
North America sales help PepsiCo beat profit forecast
The global beverage giant’s investments in marketing and developing new products for emerging markets pay off
Bengaluru — PepsiCo posted stronger-than-expected profit on Tuesday, boosted by beverage sales in North America that rose after a year of declines and as investments in marketing and developing new products for emerging markets paid off. Shares of the company were up nearly 1% in early trading. The sales rebound in North America came as PepsiCo expanded its portfolio with more noncarbonated drinks and sparkling water, launching brands such as Lifewtr and Bubly, while adding healthier options to its sports-drink line Gatorade. The company also boosted advertising behind its trademark colas — Pepsi, Diet Pepsi and Pepsi Zero — to claw back market share from larger rival Coca-Cola. North America beverage sales rose 2.3% in the third quarter ended September 8, but were short of analysts’ average estimate of a 5% increase, according to Thomson Reuters. Frito-Lay, the firm’s snack division, also saw sales rise 2.6% in North America, but that fell short of estimates due to slowing demand f...
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