PepsiCo reported that its total revenue rose 2.6% to $23.94 billion in the July to September period. This was better than the $23.84 billion Wall Street was expecting, reported the Associated Press.
“PepsiCo is already seeing good results from innovation on the beverage side. Pepsi Zero Sugar saw double-digit net revenue growth in the July-September period, the company said, while Mountain Dew sales got a boost from new flavors like Summer Freeze and Dragon Fruit. PepsiCo said its North American beverage revenue rose 2% in the third quarter,” AP wrote.
“Innovation is critical for us, and we’ve been working with a real sense of urgency on new platforms to capture segments of the market that are disproportionately growing,” PepsiCo Chairman and CEO Ramon Laguarta said during a conference call with investors.
Laguarta said that the company is moving quickly to cut underperforming products and reinvest in new ones, including a line of Doritos and Cheetos with no artificial flavors or colors. Tostitos and Lay’s chips with no artificial dyes will reportedly soon be for sale in the U.S.
“PepsiCo, which in recent months bought prebiotic soda brand Poppi and raised its stake in energy drink maker Celsius, said it was evaluating acquisitions in segments that are showing faster growth in the packaged food industry,” reported Reuters.
The company is also offering smaller pack sizes as consumers look for affordable options, a move that helped drive volume growth in some Asian markets this year, per the Reuters report.
In July, PepsiCo announced its new Pepsi Prebiotic Cola is “the evolution of cola created to reflect the tastes and values of today’s cola lovers.” The drink includes five grams of cane sugar, has 30 calories and contains no artificial sweeteners.