PepsiCo CFO sees growth in snacks, dairy
February 16, 2009
PepsiCo Chief Financial Officer sees opportunities for dairy products and snacks to help it weather the economic slowdown that''s hammering its domestic beverage business, according to Reuters. Pepsi has formed a joint venture with Saudi Arabia''s Almarai Co, the Gulf''s largest dairy company by market value, to invest in dairy and juice processors in Southeast Asia, Africa and the Middle East. The venture will be called International Dairy and Juice Ltd and PepsiCo will hold 52 percent. At present, the company''s business includes drinks like Pepsi, Gatorade, Tropicana and SoBe Lifewater and foods including Frito-Lay snacks and Quaker oatmeal. Volume in the North American beverage business fell 6 percent in the fourth quarter, as a recession has made consumers more frugal. Volume in the foods business remained flat. CFO Goodman said he is confident the food business will continue to outperform the drinks business, since historically the food business has never suffered that badly.