Pepsi says drinkers are pulling back and buying less of its namesake beverage
PepsiCo reported a decline in sales volumes for its North American soft drinks business in the third quarter as consumers pull back on spending. CEO Ramon Laguarta expressed caution, noting that shoppers are struggling with inflation and are unlikely to increase spending in the near term.
Why it matters
PepsiCo's performance serves as a bellwether for broader consumer sentiment and the impact of persistent inflation on household budgets.
Bottles of Pepsi are displayed in a grocery store, Ill., Thursday, Feb. 10, 2022. (AP Photo/Nam Y. Huh) Nam Y. Huh/AP We're drinking less Pepsi these days. Sales volumes of PepsiCo sodas declined in the third quarter, the company said on Thursday. Pepsi doesn't expect consumers to suddenly be in a better place in the next 12-18 months, CEO says. Pepsi is losing its fizz. Sales volumes in PepsiCo's North American soft drinks business fell 2% during the company's third quarter, it said on Thursday. The company also cut its sales growth forecast for the fourth quarter. "We do not feel good about the beverage business," CEO Ramon Laguarta said on the company's earnings call. The soda slowdown is the latest indication that many consumers are spending more carefully. US consumer sentiment recently dipped below pandemic levels as wages have failed to keep up with inflation.
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