Pepsi Delivers Profits on Salty Snacks as Soda Fizzles

PepsiCo reported a strong quarter with impressive sales in Frito-Lay and Quaker Oatmeal, despite challenges in beverage sales. Analyst Lauren Lieberman discusses the company's performance and Coca-Cola's resurgence due to increased advertising. PepsiCo is advised to focus on core brands and develop a small brand strategy to compete effectively. The company continues to innovate in the snack sector, with new flavors and acquisitions like Bear Snacks, to keep the business fresh and modern.

What factors contributed to PepsiCo's strong performance in the second quarter?

• Strong sales of Frito-lay chips and Quaker Oatmeal

• Expansion into new markets

• Increased beverage sales

• Reduction in advertising costs

How has Coca-Cola become a competitor to PepsiCo again?

• By reducing product prices

• Through increased advertising spending

• By launching new beverage flavors

• By acquiring smaller brands

What strategy does PepsiCo need to focus on to handle the rise of small brands?

• Increase advertising for core brands

• Develop a credible small brand strategy

• Expand into international markets

• Reduce production costs

What recent acquisition did PepsiCo make to diversify its product offerings?

• Quaker Oats

• Mountain Dew

• Bear Snacks

• Lay's Chips

How does PepsiCo keep its Frito-lay business fresh and appealing?

• By focusing solely on core products

• By introducing new and exciting flavors

• By cutting down on marketing expenses

• By reducing product prices