Pepsi's revenues show that the thirst for sparkling water is real – Quartz

PepsiCo, one of the world's largest food and beverage companies, today announced a $ 2.04 billion profit for the second quarter, once again exceeding analysts' expectations. Revenue growth was not as strong as first-quarter exceptional results in April, but snacks and sparkling water helped support the brand.

Pepsi's Frito-Lay division, which includes various chip brands such as Doritos and Tostitos, continues to perform well, with sales growth more than double that of the beverage category. In recent years, sales of traditional soft drinks have declined as consumers are pushing for safer and healthier substitutes for beverages. Soda water sales brought in more than $ 2.3 billion in the United States in 2018, while flavored water rose 72% to over $ 3 billion.

Pepsi double on this change. Last December, it finalized the acquisition of the Israeli company SodaStream for $ 3.2 billion. The company's eponymous product allows consumers to create drinks at home with different temperatures, flavors and levels of carbonation.

"We are starting to make more use of PepsiCo's capabilities against those of SodaStream, particularly with regard to aromas and some of the consumer experience with flavors that, in my opinion, were under-optimized," he said. said in his message Ramon Laguarta, president and CEO of Pepsi. – call for calls.

Pepsi has also invested in other sparkling water products, including the Bubly sugar-free product, which according to Laguarta is the brand of tomorrow. "We are going to innovate in this brand, not just for the flavors, but for other occasions. I think we can attack. You will see mini cans. You will see bigger cans. We think it will be a very good position. It will be a non-plastic mark. It may be one of our next billion dollar brands, "he added.

Business sectors without plastics and the fact that SodaStream avoids single-use bottles could also offset some regulatory risks for the company. Its quarterly report (pdf) highlighted the prospect of new environmentally friendly taxes and regulations in some jurisdictions.