FMCG major PepsiCo on Tuesday reported double-digit organic growth in both its convenient foods and beverage categories in India, even as it witnessed a weak demand for its sodas and snacks in the United States, its largest market.
“Convenient foods unit volume grew 2%, primarily reflecting mid-single-digit growth in South Africa and double-digit growth in India, partially offset by double-digit declines in the Middle East and Pakistan,” the company said in its yearly financial report.
“Beverage unit volume grew 1%, primarily reflecting double-digit growth in India, partially offset by a low-single-digit decline in the Middle East, a mid-single-digit decline in Pakistan and a high-single-digit decline in Nigeria,” it added.
The company said it held or gained the market share for both savoury snacks and beverages in India.
PepsiCo, which is undergoing a restructuring, missed quarterly revenue estimates and reported a 1% fall in total organic volume.
Under the restructuring, which was implemented on January 1, PepsiCo will establish a new International Beverages Region to unify global franchise partners under one management structure with profit-and-loss accountability.
This includes Varun Beverages Ltd, which serves as PepsiCo’s bottling partner here.
It has also included India as one of the 13 “anchor markets”, which can contribute over 85% to its future growth.
Ramon Laguarta, PepsiCo’s chairman and global chief executive, said that international business now accounts for 40% of the total revenue of the company.
In India, it competes with rivals such as Coca-Cola, Paper Boat, and Reliance Consumer Products.
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