As soda sales in the United States decrease, Pepsico recorded higher earnings for the third fiscal quarter Wednesday thanks to its efforts to expand globally, and success with snack products Reuters reported.
"In the last six to nine months, there has been an accelerated decline in diet drinks as people say they don't even want artificial sweeteners," Pepsico chief executive officer Indra Nooyi told analysts Reuters reported. "The diet slowdown has been a little more rapid than we expected. "For Pepsico to keep a grip on soda, it's important in the next two to three years we come up with innovations such as new, more natural, low calorie sweetener."
In the third fiscal quarter, Pepsi had revenue earnings of $1.91 billion or $1.23 per share Reuters reported. The figures increased one percent from $1.90 billion or $1.21 per share the year prior. This succeeded analysts' predictions of $1.17 per share. The company also saw early trading numbers of 1.6 percent at $81.89.
Pepsico's competitor, Coca-Cola also saw sales increase, but with its offerings of non-soda products. The company also makes a variety of snacks, and beverages. These include Frito-Lay chips, and Tropicana juices.
"I believe in running the company for shareholders that are going to stay, rather than the ones that are going to leave and if you are going to stay as a shareholder I think you like the idea of them having two good businesses," investor Warren Buffet, whose company Berkshire Hathaway has a major stake in Coca-Cola, told Reuters.
Overall sales increased three percent for food companies, while beverage companies had a one percent increase. Sales for food companies in Asia, the Middle East, and Europe increased four percent. This was helped by double digit growth in China, Pakistan, and Turkey.
Beverage sales decreased four percent in the United States, while only falling one percent in Europe. In Asia, the Middle East, and Africa sales went up seven percent Reuters reported.
