PURCHASE, N.Y.—PepsiCo highlighted the convenience store channel as a bright spot in its strong third-quarter earnings, the Wall Street Journal reports.
Revenue grew in convenience stores and gas stations, Hugh Johnston, PepsiCo finance chief, told the Journal, while sales in restaurants and offices remain depressed.
“Mobility has clearly risen,” Johnston said. “People are getting comfortable with how to protect themselves in the new environment and live their lives.”
PepsiCo’s North American beverage division revenue climbed 6% to $5.96 billion, reversing a 7% decline in the previous quarter. PepsiCo’s Frito-Lay and Quaker Foods units reported strong growth. Third-quarter sales in the Frito-Lay North America division, which makes Doritos, Tostitos, Cheetos and other snack foods, rose 7% to $4.4 billion.
PepsiCo also is considering a move into the U.S. alcohol market. In August, Coca-Cola said it will release its first hard seltzer—Topo Chico Tangy Lemon Lime—in select Latin America cities later this year, followed by a U.S. launch in 2021.
Trips in the packaged beverages and salty snacks categories are improving across the c-store channel, according to data from the PDI/NACS biweekly report examining how COVID-19 is impacting consumer behavior.