Paul Young’s Post

PepsiCo reported lower-than-expected revenue for the second quarter as demand for its snacks and sodas, especially in the U.S., its largest market, softened. Inflation-weary consumers cut back on spending, opting for smaller pack sizes and cheaper alternatives amid higher prices from branded food companies. Despite a 𝟓% 𝐢𝐧𝐜𝐫𝐞𝐚𝐬𝐞 in average prices, PepsiCo experienced a 𝟑% 𝐝𝐞𝐜𝐥𝐢𝐧𝐞 in organic volume, leading to increased promotional efforts to boost growth.

PepsiCo says it is boosting the volume of some of its packages of chips, after being accused last year of "shrinkflation," or reducing the size of products without lowering the price. In the company's earnings call last week, PepsiCo CEO Ramon Laguarta said the food and beveragegiant would be offering bonus packs of Tostitos containing 20% more chips, and will also be throwing two or three more bags of Doritos into multipacks as a way to add value for consumers. The move comes after Pepsi reported a surprise drop in revenue in the third quarter and cut its annual forecast as consumers in North America limit their spending on sodas and savory snacks, while opting for cheaper private-label brands. #inflation #groceryindustry Breck Dumas https://lnkd.in/eCVjxyzG

Breaking! This morning ahead of the bell, PepsiCo released its Q2 2024 financial results, revealing continued slumping demand in its salty snack business and persistent challenges from a recall of Quaker Oats products. On an investor call today, PepsiCo CEO Ramon Laguarta acknowledged that "some parts of the portfolio need value adjustment" but backed off on making broad cuts to pricing. He also highlighted how the company is tapping into consumer demands for zero-sugar and functional beverages. To learn how PepsiCo plans to offset these challenges with "productivity initiatives and ... disciplined commercial investments," make sure to read my latest article over at FoodNavigator-USA. #FoodandBeverageNews #PepsiCo #FritoLays #FinancialResults #Pepsi #BeverageNews

"Do the Dew" won't overcome these weak earnings. Many food makers took shrinkflation to extreme over the past decade. That may be coming back to bite as PepsiCo trims revenue outlook customers practice their on form of shrinkflation by cutting back on snacks. Forget the dip and let the chips fall where they may. Earnings are down, which shouldn't come as a surprise. PepsiCo's sales of both snacks and drinks declined this quarter with a 2% decrease in volume for both its food and beverage divisions. Like many other food makers are painfully discovering, a major shift in consumer behavior is occurring across all income levels. That's not just happening in the U.S., but globally since Latin America and Africa, Middle East and South Asia all saw shrinking volume for both food and drinks. Salt and savory are out. Speaking of chips, consumers are snacking less on Corn Chips, Cheetos and SunChips, which may speak to a larger issue - value and variety. Like the fast food industry, consumers are becoming much more selective about their spending, but they're willing to open their wallets for something different. It's one reason why PepsiCo dished out more than $1.2 billion for Siete Foods, which manufactures items for a broader audience with dietary concerns. PepsiCo's earnings are likely representative to those of other food manufacturers. The challenge now is coming up with a strategy to diversify food and beverage offerings balanced with value, while overcoming the bad taste consumers still have over shrinkflation https://lnkd.in/edemTwyH #pepsico #inflation #earnings #food #snacks #shrinkflation #consumers

PepsiCo reported lower-than-expected revenue for the second quarter as demand for its snacks and sodas softened, especially in the U.S., its largest market. The company faced challenges as inflation-weary consumers cut back on spending, opting for smaller pack sizes and cheaper alternatives amid higher prices from branded food companies. Despite a 5% increase in average prices, PepsiCo experienced a 3% decline in organic volume, leading to increased promotional efforts to stimulate growth. Sales from its North America beverages and Frito-Lay units remained significant contributors to overall revenue. PepsiCo's net revenue edged up to $22.50 billion, slightly missing analysts' expectations of $22.57 billion.

The company, which owns brands like Mountain Dew, 7up, and Lays, now anticipates organic sales to increase at a low single-digit rate for fiscal year 2024, down from its earlier prediction of a 4% rise. Commenting on this, the CEO Ramon Laguarta said, “The cumulative impacts of inflationary pressures and higher borrowing costs over the last few years have continued to impact consumer budgets and spending patterns.” According to a report by Reuters, Increased prices for food and other goods have led consumers to cut back on spending, choose smaller packages and portions, and reduce their visits to convenience stores, which are usually a significant source of PepsiCo’s beverage sales. Additionally, PepsiCo reported an unexpected decline in third-quarter revenue, partly due to a 13% drop in sales at Quaker Foods, still struggling with the effects of product recalls earlier this year. To read more, click link below 👇 https://lnkd.in/eBEQEF66 • • • #marketingedgem #marketingedge #industrynews #imc #branding #adverting #marketing #digitalmarketing

🔄 PepsiCo Lowers Sales Forecast! 🏭 PepsiCo has revised its sales forecast as consumers cut back on snacks and sodas. With economic pressures mounting, companies are adapting to evolving consumer behavior. What’s next for the snack giant? Read more: https://lnkd.in/ggmJu-_r Stay informed by following Ice Cream Times Magazine for more industry updates! #PepsiCo #ConsumerTrends #SalesForecast #IceCreamTimes #FMCGNews

#WeAreSpendingLess #ConsumerGoods Consumers frustrated by rising prices are now spending less on established brands, particularly in the snack and soda aisles. PepsiCo, which makes not only its namesake sodas but also other drinks, Frito-Lay snacks and Quaker cereals, raised prices by 5 percent in the second quarter and saw unit sales shrink. Volumes in North America fell 4 percent for Frito-Lay, one of the company’s more prolific snack businesses, and 3.5 percent for PepsiCo Beverages. Some retailers have already responded. Target, Aldi, Amazon and Walmart announced in May that they were rolling back prices on many grocery items. Are we all hungry for better deals? 🙂↕️ #consumernews #recruiterinJapan #FMCGJapan #FMCGNews

PepsiCo reported lower-than-expected revenue for the second quarter as demand softened for its snacks and sodas, particularly in the U.S., its largest market. The company faced challenges as inflation-weary consumers reduced spending on these products, opting for smaller pack sizes and cheaper alternatives amid higher prices from branded food companies. Despite a 5% increase in average prices, PepsiCo saw a 3% decline in organic volume, prompting increased promotional efforts to stimulate growth. Sales from its North America beverages and Frito-Lay units remained significant contributors to overall revenue. PepsiCo's net revenue edged up to $22.50 billion, slightly missing analysts' expectations of $22.57 billion. Net income attributable to the company rose to $3.08 billion. #PepsiCo #Q2Earnings #SnackAndSodaDemand

𝗗𝗼𝘂𝗯𝗹𝗶𝗻𝗴 𝗱𝗼𝘄𝗻 𝗼𝗻 𝘄𝗵𝗮𝘁 𝘄𝗼𝗿𝗸𝘀 (𝗯𝗼𝗹𝘁-𝗼𝗻 𝘀𝗮𝘃𝗼𝗿𝘆 𝘀𝗻𝗮𝗰𝗸𝘀 𝗠&𝗔): PepsiCo PepsiCo is in advanced talks to acquire tortilla-chip maker Siete Foods for more than $1 billion according to the WSJ following a competitive sales process drawing interest from private-equity firms and other food companies PepsiCo is the world largest savory snacks player with its Frito-Lay business (23% global market share) with a leadership position in the US (39% market share & $25bn net revenue) PepsiCo was one of the 49% of the world largest listed 50 FMCG companies that missed its top-line consensus last quarter 𝗔𝘀 𝗽𝗿𝗲𝗱𝗶𝗰𝘁𝗲𝗱 𝗮𝘁 𝘁𝗵𝗲 𝗯𝗲𝗴𝗶𝗻𝗻𝗶𝗻𝗴 𝗼𝗳 𝘁𝗵𝗲 𝘆𝗲𝗮𝗿, 𝘄𝗲 𝗰𝗼𝗻𝘁𝗶𝗻𝘂𝗲 𝘁𝗼 𝗮𝗻𝘁𝗶𝗰𝗶𝗽𝗮𝘁𝗲 𝗮 𝗽𝗿𝗼𝗴𝗿𝗲𝘀𝘀𝗶𝘃𝗲 𝗠&𝗔 𝗮𝗰𝗰𝗲𝗹𝗲𝗿𝗮𝘁𝗶𝗼𝗻 𝗶𝗻 𝘁𝗵𝗲 𝗙𝗠𝗖𝗚 𝗶𝗻𝗱𝘂𝘀𝘁𝗿𝘆 𝗮) 𝗗𝗿𝗶𝘃𝗲𝗻 𝗯𝘆 𝘄𝗵𝗮𝘁 𝗵𝗶𝘀𝘁𝗼𝗿𝗶𝗰𝗮𝗹𝗹𝘆 𝗱𝗲𝗹𝗶𝘃𝗲𝗿𝗲𝗱 𝘁𝗵𝗲 𝗯𝗲𝘀𝘁 𝗥𝗢𝗜 - Mid-size transactions ($0.5-5bn) - On same categories leveraging GTM synergies & existing expertise - In the world largest FMCG markets starting with the US (historically >50% of M&A transactions value) 𝗯) 𝗢𝗻 𝘁𝗵𝗲 𝘃𝗲𝗿𝘁𝗶𝗰𝗮𝗹𝘀 𝘁𝗵𝗮𝘁 𝗻𝗲𝗲𝗱 𝗶𝘁 𝗺𝗼𝘀𝘁: - Led first & foremost by Food & Beverage (75% of the global FMCG industry), vertical most hit by volume deceleration/ price elasticity & benefiting the most from M&A consolidation (lowest gross margin % vertical) Exciting times for M&A in the FMCG industry 𝗔𝗯𝗼𝘂𝘁 𝘂𝘀: FF&A solves the most complex strategic problems of the world largest FMCG companies across Corporate Strategy, Organic Growth, Digital RTM (Ecommerce, DTC and EB2B) and M&A. 14 out of the world 20 largest FMCG companies are repeat Clients (https://lnkd.in/dc6jY4Qp) 𝗧𝗼 𝗸𝗻𝗼𝘄 𝗺𝗼𝗿𝗲, 𝗰𝗳. 𝗼𝘂𝗿 𝗹𝗮𝘀𝘁 𝗙𝗠𝗖𝗚 𝗠&𝗔 𝗽𝘂𝗯𝗹𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝗯𝗲𝗹𝗼𝘄: 𝗙𝗠𝗖𝗚 𝗖𝗘𝗢𝘀: 𝟭𝟬 𝗕𝗿𝗶𝗲𝗳 𝗧𝗵𝗼𝘂𝗴𝗵𝘁𝘀 𝗔𝗯𝗼𝘂𝘁 𝗧𝗵𝗲 𝗠𝗮𝗿𝘀-𝗞𝗲𝗹𝗹𝗮𝗻𝗼𝘃𝗮 𝗗𝗲𝗮𝗹 & 𝗢𝗻 𝗪𝗵𝗮𝘁 𝗟𝗶𝗲𝘀 𝗔𝗵𝗲𝗮𝗱 𝗙𝗼𝗿 𝗠&𝗔 𝗜𝗻 𝗧𝗵𝗲 𝗙𝗠𝗖𝗚 𝗜𝗻𝗱𝘂𝘀𝘁𝗿𝘆 https://lnkd.in/eKcD6VRa 𝗧𝗼 𝗴𝗲𝘁 𝗮𝗹𝗹 𝗼𝘂𝗿 𝗶𝗻𝘀𝗶𝗴𝗵𝘁𝘀, 𝗳𝗼𝗹𝗹𝗼𝘄 𝘂𝘀 & 𝘀𝘂𝗯𝘀𝗰𝗿𝗶𝗯𝗲 𝘁𝗼 𝗼𝘂𝗿 𝗙𝗠𝗖𝗚 𝗖𝗘𝗢 𝗜𝗻𝘀𝗶𝗴𝗵𝘁𝘀 𝗻𝗲𝘄𝘀𝗹𝗲𝘁𝘁𝗲𝗿: https://lnkd.in/ea4gy65y #fmcg #cpg #mergersandacquisitions The Coca-Cola Company PepsiCo Procter & Gamble Unilever The HEINEKEN Company Danone Carlsberg Group AB InBev Henkel Reckitt Opella Bayer | Consumer Health Kenvue Mars Ferrero Mondelēz International Lindt & Sprüngli JDE Peet's General Mills Kimberly-Clark Essity Diageo Pernod Ricard Campari Group L'Oréal The Estée Lauder Companies Inc. Coty Beiersdorf Coca-Cola HBC Coca-Cola Europacific Partners Campbell's FrieslandCampina Kellanova Church & Dwight Co., Inc. Colgate-Palmolive Nestlé Edgewell Personal Care https://lnkd.in/enScw5fj