Consumer
PepsiCo Sales Disappoint as US Consumers Cut Back on Snacks
- Company plans to focus on promotions and marketing initiatives
- International business grows in importance as US slows
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PepsiCo Inc. reported weaker-than-expected revenue growth as its snack-food business was hurt by increasingly budget-focused shoppers and a recent Quaker Foods recall.
The maker of Doritos chips and Mountain Dew sodas said Thursday that organic revenue rose 1.9% in the second quarter, missing the 2.9% average estimate of analysts surveyed by Bloomberg. The volume of food products sold in the period was down 2% from a year earlier, including steeper drops for the Frito-Lay and Quaker Foods businesses in North America.