PepsiCo Turns to Premium Snacks to Fuel Growth
- Poppables, LifeWTR allow company to charge more to consumers
- Volume was flat at Frito-Lay, company’s biggest sales source
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Facing stagnant sales volumes, PepsiCo Inc. Chief Executive Officer Indra Nooyi is turning to a well-worn playbook to fuel growth: charge higher prices and cut expenses.
The company is focusing on more premium products such as Poppables, LifeWTR and Quaker Overnight Oats, rather than old standbys like Lay’s and Diet Pepsi. And the strategy is showing up in PepsiCo’s bottom line: It contributed to second-quarter earnings that topped Wall Street estimates, and the food giant boosted its annual forecast.