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October 2, 2020updated 16 Jun 2021 3:55pm

Beverages post “significant improvement” for PepsiCo in Q3

PepsiCo's North America drinks division has seen its latest set of results return to growth after a tough prior period.

  • PepsiCo Beverages North America Q3 sales climb 3% to US$5.96bn
  • Volumes dip 1% for the unit in three months to end of September
  • Nine-month PBNA sales come in flat at +0.5% – $15.77bn – on 2% volumes dip
  • Group sales rise 4.2% in three months, +3.6% in YTD

PepsiCo’s North America drinks division has seen its latest set of results return to growth after a tough prior period.

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Almost three months after posting a 1% decrease in sales for the first six months of 2020, PepsiCo Beverages North America this week delivered a top-line lift of 3% in the three months to the end of September. While the unit’s volumes were down 1%, the decline was slower than the 3% slide in the first half.

PepsiCo’s drinks volumes in North America were juxtaposed, with its CSD portfolio down 3% and non-carbonated brands up by the same amount. Both Gatorade and the groups’ energy drinks stable were credited with driving the non-carbonate volumes.

Elsewhere, in geographical terms, Latin America’s drinks volumes fell 7%, with Colombia and Argentina’s strong showings being offset by Honduras, Guatemala and Mexico. Europe, meanwhile, boasted an 11% beverage volume jump, thanks to Germany, France, Russia and the UK. India had a tough quarter, down double digits, although Nigeria enjoyed mid-single-digit volumes growth.

CEO Ramon Lagurta

“Despite the ongoing volatility and complexity in our operating environment, I believe our third-quarter performance reinforces the diversification of our portfolio [and] the resilience and agility of our teams across every continent … .

“These results reflect … a significant improvement in our global beverage business.”

On outlook, the company is projecting a 4% increase in sales from 2020.

To view PepsiCo’s Q3 results statement, click here.

The rise of adaptogens – the continued evolution of health & wellness in soft drinks – Click here for a just-drinks comment

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Understand the impact of decreasing sugar consumption on the F&B market

Growing consumer concern regarding health and wellbeing has increased the focus on reducing sugar consumption. This has driven food and beverage manufacturers, alongside governments, to take measures to meet this challenge. In addition, the pandemic heightened the focus on self-care, including implementing healthy eating to support the immune system. Now more than ever, consumers are paying attention to the amount of sugar and calories in the products they purchase. Access GlobalData’s new whitepaper, The Sugar Reduction Challenge – Past, Present and Future Outlooks within Beverages, to better understand the recent trends in sugar demand, how manufacturers and governments have responded to the challenge, and what solutions are available to the industry. The white paper covers:
  • The key factors behind the recent trends in sugar consumption
  • What is driving consumer choices when shopping for food and beverages?
  • How companies and governments are stepping up their efforts to meet consumers’ expectations
  • The outlook for sugar demand
  • Which ingredients stand to benefit from these future developments?
Enter your details here to receive the free whitepaper.
by GlobalData
Enter your details here to receive your free Whitepaper.

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