NEW YORK–PepsiCo reported a stronger-than-expected quarterly profit as the company sold more snacks around the world and hiked prices, including on its drinks.
The company, which also makes Frito-Lay, Gatorade, Mountain Dew and Tropicana, said global snack volume rose 2 percent in the period. Global beverage volume was unchanged from a year ago, including in its closely watched North American drinks unit.
Even though beverage volume was flat in North America, PepsiCo managed to push up revenue by raising prices as well as introducing more expensive drinks such as Mountain Dew Kickstart, which is marketed as an energy drink of sorts for younger men.
In a phone interview, Chief Financial Officer Hugh Johnston noted that a can of Kickstart costs US$1.99, versus US$3.50 for a 12-pack of Mountain Dew. He said that stepped-up marketing has strengthened the company’s brands, which has allowed PepsiCo to raise prices.