According to Reuters, in the first quarter, PepsiCo’s revenue grew by 8.5% to $19.4 billion, beating analysts’ expectations. The growth was driven by discounts on popular products and a partial recovery in demand in North America. But behind these figures is a less optimistic picture: sales volumes continue to decline.
The main problem is changing consumer behavior. Shoppers are increasingly saving money and opting for cheaper or healthier alternatives. Sugary drinks and calorie-laden snacks are losing ground, especially against the backdrop of growing interest in healthy lifestyles.
Pepsi is under pressure from ZOLO
The main problem is changing consumer behavior. Consumers are increasingly turning away from expensive snacks and sugary drinks, forcing manufacturers to cut prices and revise assortments.
Changing consumer habits are also having an impact. In particular, the proliferation of weight-loss drugs and the growing interest in healthier eating are already leading to a decrease in the consumption of calorie-rich snacks.
Company response
Against the backdrop of these challenges, PepsiCo is taking measures to support demand, first of all, it is reducing prices on key products (in some cases by up to 15%). Secondly, it is updating recipes with a lower content of sugar and artificial additives. The operator is also reducing the assortment and optimizing production.
In addition, the company is focusing on new categories – energy drinks and healthier alternatives to sodas.
Focus on “price maneuvers”
Despite pressure in certain segments, PepsiCo maintains a moderately positive outlook for 2026. According to investing.com, it expects organic revenue growth of 2-4% and EPS growth of up to 6% .
Nevertheless, analysts warn that further dynamics will depend on whether the company can restore sales volumes, and not only maintain earnings through price maneuvers.
