The dip related to negative foreign exchange translation and heavy structural changes, including its
However, PepsiCo Americas Foods (PAF), that comprises Frito-Lay North America (FLNA), Quaker Foods North America (QFNA) and Latin America Foods (LAF), recorded a 4% revenue surge for Q2 with profits slightly up.
This steady growth was driven by positive effective net pricing and underpinned by innovations and increased media support, PepsiCo said.
Mexico
In today’s conference call, Indray Nooyi, chairman and CEO of PepsiCo, highlighted how important emerging and developing markets had been to this growth across its foods segment.
While all emerging and developing markets have been driving growth, for snacks,
PepsiCo already holds the largest market share in
PepsiCo outlined that Latin America Foods showed the strongest revenue growth among PepsiCo’s food arms, with an 8% surge underpinned by“particularly strong growth in
The snacks and beverage giant caters to the Mexican snacks market through two subsidiaries – Sabritas and Gamesa – that produce Doritos, Tostitos and Cheetos. Its Sabritas arm was recently caught up in a drug-gang problem as it was accused of allowing police to spy on Mexican druglords.
Europe
Crisps stable, cereals sinking?
Frito-Lay North America (FLNA) saw reported net revenues surge by 3% spurred by “effective net pricing and disciplined channel revenue management strategies”.
A growth strategy was employed in early March dedicated to exploiting the premium and value end of the snacks market.
“We could have employed different volume growth strategies for Frito-Lay…But we are comfortable with what has been achieved,” Nooyi said today.
While the push is on premium and value, the ‘middle’ segment must not be forgotten, she said.
“Our challenge is to find the right strategy to compete with value without impacting the middle brands,” she added.
Quaker Foods North America (QFNA) saw a dip of 7% in its core constant currency operating profits due to higher commodity cost inflation, partially offset by productivity initiatives, PepsiCo said.
PepsiCo said that results were in line with expectations and indicated business was on track to reach its forecast full-year earnings for 2012.
