PepsiCo’s CEO says pressure on household budgets is reshaping food and drink demand, while lower snack prices have helped lift volumes at the cost of profitability.
PepsiCo said inflation and pressure on household budgets are weighing on demand for snacks and soda, as consumers pull back on discretionary food and beverage purchases. CEO Ramon Laguarta said the company is also seeing shifts tied to factors including higher gasoline prices and the appetite-suppressing effects of weight-loss drugs, creating new challenges and openings across the food and beverage industry. Earlier this year PepsiCo lowered prices on snacks including Doritos and Lay’s, a move that helped revive sales volumes but reduced profit.