CNBC: "PepsiCo earnings beat estimates but . . . weaker lower-income consumer hurt U.S. sales"

From the article:

But the company’s volume is still under pressure. Pepsi, along with many of its rivals, has seen its volume fall in response to higher prices for its Gatorade, Fritos and other products in its portfolio. . . .

Volume in its beverage unit fell 5% in the quarter, while Frito-Lay North America reported a 2% decline in its volume.

Frito-Lay North America’s effective net pricing was up 3% in the quarter, while Pepsi’s domestic beverages unit’s prices rose 6%.

In the U.S., lower-income consumers are still trying to stretch their paychecks, Pepsi CEO Ramon Laguarta told analysts on the company’s conference call. . . .

Let there be no doubt.

Let there be no dispute.

We our current economic progress is K-shaped at best.
“It’s a great economy” applies only to some.
“The economy is unchanged, it’s always been this way,” is simply untrue.

Generation after generation of low- and middle-income Americans could afford basic things like Pepsi and now they cannot. (Heck it was invented as a drink for the masses.)

Something has changed. It is not the same. It is getting worse nd singing “the economy is great! the economy is great.” is incorrect and not at all something a president or or governor or congressman should be doing.

When the poor can’t even afford their soda; when booze is cheaper than gasoline, you know the economy is doing great! :rofl:


Junk food is a luxury for the lower income. When money gets tight luxuries are always the first things cut back.


John F Kennedy once famously said “A rising tide lifts all boats.”

He never said “Inflation treats all income-groups equally.”
He never said “Inflation doesn’t matter because most people get a pay incfrease and it kinda balances out.”

And he certainly never said “When the economy sucks, the president’s job is to lie and tell everyone how great it is. That is what makes a great president.”

I think I know why he never said those things.

I disagree. Responsible people do that.

Having been as poor as it gets and living with others in the same situation, I can assure you that most poor people will very commonly prioritize their vices over just about everything else, including utilities, rent, etc…

Because, “At least I’m not jonesing for a cigarette on top of everything else!”

1 Like

PepsiCo returned $8 billion to investors in 2023.

Maybe if they used that to keep prices low more people could afford their product.

But for some reason they think the low-income consumer is weaker now than before.

Do you disagree?

Compared to recent years the low-income consumer is (economically)
a. Better off
b. About the same .
c. Worse off

If you let in a bunch of low wage workers, wages drop. Simple supply and demand. Voting democrat makes people poor and unsafe.

Dems states like poverty , or they would not create so much of it…

1 Like

I am sure that they are in a weaker position.

But it seems like PepsiCo is beating estimates so profitability isn’t their problem… they have raised prices to respond to rising ingredient cost… it when you see $8 Billion in that profit going to shareholders and stock buybacks I can’t believe that they don’t have the money to keep their prices lower.

1 Like

Booze is cheaper than bottled water in most cases. And that’s nuts to me.


Or maybe lower income consumers are not wanting to drink as much pop?

1 Like

It would be better if they didn’t. Due to my kidney issues I completely cut out any dark soda (I’ll still have a Sprite or 7-Up once in a while) and I lost almost 50 pounds in just four months.

Now to be fair I do have to mention that I didn’t have an appetite either so I was only eating once per day. So the numbers are skewed. But I’m sure cutting out the sodas did wonders for my weight.


Cutting carbs is a guarantee for guys to shed the stored fats. Women hate it. :sunglasses:

1 Like

I’ll have to check.

Stock buybacks are generally nothing more than dividends in another form.
Insofar as investing is not supposed to be a not-for-profit business (cops, teachers plumbers etc., invest so they can retire etc,) there is nothing wrong or improper about it.

Moreover it does not always imply a company is making a great/unfair profit.
To wit:

Pop is my vice. I dont smoke, drink alcohol but my god I love pop. I really have to change my habits.

What is good for me is that when i go into the office there is no pop to be found. Just a plethora of flavored waters, juice etc. I am incredibly fortunate as all bottled drinks, food etc at my employer is free.

1 Like

At my job I’m just begging them to get some more water please. And maybe put some sprites in the machine. I can’t drink coke or Dr Pepper.

1 Like

So it’s Pepsi’s fault.


Not bidenflation.

Leftists take responsibility for NOTHING they ever do.

Wait you’re British and don’t smoke?? :rofl::rofl::rofl:

Man I always assumed y’all came out of the womb with a lit cigarette.

1 Like