Thursday, October 13, 2011

PepsiCo 3Q Profit Climbs on Snack and Beverage Sales

PepsiCo Inc. has gained revenue due to raising its prices and growing overseas.

Higher costs of fuel, packaging and ingredients have caused many companies in the United States to raise prices. Along with raising prices, many companies in the U.S. have had to cut back on spending, forcing them to expand overseas. This has turned out to be a recipe for success for PepsiCo Inc. who has shown higher revenue in the 3rd quarter, despite a shaky economy. The company has shown a 4 percent profit for the 3rd quarter, which beat Wall Street's predictions.

PepsiCo showed its largest gains in Europe, which showed a 37 percent increase. Asia, Africa and the Middle East all showed gains of 25 percent while Mexico and Brazil showed gains of 19 percent. In North America, snack foods like Frito lay, Doritos, Cheetos and Ruffles all showed gains of 2-4 percent despite higher prices and cost controls.

The company is brainstorming, trying to think of new ways to attract the customers in the U.S. who have cut back on their spending but still want to buy Pepsi products. The Company has also stated that they will be raising prices further on select products during the fourth quarter.

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