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. . . .
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.
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.”
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!”
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.
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.
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.
