NEW DELHI: Snacks and beverages major PepsiCo Inc witnessed a double-digit decline in its beverage sales in India in the 12-week period ended June 13 as the covid-19 pandemic dwindled demand and impacted sales channels, dragging the overall volume growth in the Africa, Middle East and SouthAsia (AMESA) region. According to the company’s earnings statement, beverage volume shrank 25 per cent in the AMESA region, reflecting double-digit declines in India and Pakistan, a low-single-digit decline in Nigeria and a high-single-digit decline in the Middle East.
“The months of March and April were particularly challenging as overall global economic growth was contracting and restrictions, closures and the resulting impact on consumer mobility had a significant effect on our performance,” said PepsiCo Chairman and Chief Executive Ramon Laguarta on Monday. For PepsiCo, which competes with Coca-Cola in the beverages space, net sales for the quarter fell 3.1 per cent. Revenue for the second quarter stood at $15.95 billion.
While peak summer months for its beverages business were washed largely because cinemas and restaurants were shut, the firm’s snacks volumes remained resilient, driven by its popular brands such as Quaker Oats and Lay’s that benefitted from rise in in-home consumption—in India. “Snacks volume grew 117 per cent, primarily reflecting a 124-percentage-point impact of the Pioneer Foods acquisition, mid-single-digit growth in the Middle East and Pakistan and low-single-digit growth in South Africa, partially offset by a double-digit decline in India,” the company said in a statement.
Not so fizzy
Net sales for the quarter fell 3.1% largely pulled down by its beverage business
Snacking business, however, benefitted from a shift to in-home consumption