Look out, it seems we are drinking more soft drinks again – as reflected by the latest numbers from PepsiCo and Coca-Cola 🥤
More coke? Where does that come from?
Maybe let’s start from PepsiCo… It beat out a ton of Wall Street’s expectations. They also raised their annual outlook after seeing strong growth.
- Say thanks to reopening: Revenue rose 21% from last year as demand for soft drinks in restaurants and cinemas soared after the easing of lockdown.
- Snacks doing okay: Frito-Lay, Pepsi’s snack segment owning Lays chips and Cheetos, maintained their growth of 6%. More snacks are still needed no matter how the pandemic goes. 🤣
One weakness was in Quaker Oats in North America, which fell 14% as consumers eat less breakfast at home – probably more options after reopening?
Haha… So how about Coca-Cola?
Similar to Pepsi, Coca-Cola also beat expectations and hiked their outlook. Both revenue and profit climbed 30%+, as the away-from-home channels (basically restaurants and cinemas) are back.
- Many want to be healthier. Nutrition, juice, dairy volume grew by 25%, outpacing soda; coffee also jumped 25% with more going out.
But our coke will be more expensive! 😮 Coca-Cola said it will raise prices later this year, facing surging commodity and raw material costs.
Coca-Cola’s shares rose 1.5% overnight, and Pepsi’s shares have gained nearly 2% since its earnings report last week. Consider adding a can of coke to your lunch menu today?