NEW YORK: PepsiCo Inc’s quarterly sales and profit beat Wall Street estimates on Wednesday, as the beverage maker’s advertising and marketing push helped drive sales of its snacks, sparkling waters and low-sugar sodas globally.
Shares of PepsiCo hit a record high of $125.92 in morning trading after the company said its core sales grew at the fastest pace in more than three years.
The results come as a boost for Chief Executive Officer Ramon Laguarta who took over from Indra Nooyi six months ago.
Under his watch, Pepsico has spent more on advertising, raised production capacity, while tweaking its supply chain to focus more on healthier snacks and beverages.
The changes have helped Pepsi respond better to shifting consumer preferences at a time when packaged food and beverage companies are battling high transportation and labour costs, while trying to find the right product mix to cater to a more health-conscious consumer.
The company has modified some of its recipes using healthier ingredients and is tinkering with product sizes and marketing to keep shoppers reaching for its products.
PepsiCo recently launched a new flavour of Cheetos under its Simply snack brand and introduced a blackberry and peach flavour for its bubbly sparkling water that was promoted by singer Michael Buble.