As more Americans turn to water and other beverages instead of soda, the soda companies are struggling to figure out what to do. Now, in light of PepsiCo's most recent earnings, it seems PepsiCo is holding steady with snacks instead of soda sales.
The Associated Press reports that PepsiCo, the owner of Frito-Lay, Tropicana, and Quaker Oats, had earnings that beat Wall Street expectations, thanks to the sales of its snacks. Reports the AP: "Despite its better-than-expected results, PepsiCo stood by its forecast that core profit would grow 7 percent, noting that the global economy remains volatile and that it could opt to reinvest any savings. For the quarter, the company earned $1.08 billion, or 69 cents per share. That's down from $1.13 billion, or 71 cents per share, a year earlier."
The foods that sold particularly well: Sabras hummus and Stacy's Pita Chips, as well as Doritos (obviously). But soda sales flatlined, surprising no one. Newsday quoted CEO Indra Nooyi in a conference call as saying, "The cola category continues to be a challenge."
No wonder both Coca-Cola and PepsiCo are trying to figure out how to get people to keep buying soda, or as Nooyi put it, "reinventing cola." Despite its numerous beverage brands, though, like Lipton teas or Aquafina bottled water, soda is still what sells the most. Maybe it's Beyoncé and Sofia Vergara that are convincing people to buy.