PepsiCo''s First Quarter Profit Rises from International Markets
April 22, 2010
Strong sales of PepsiCo Inc.''s snacks and drinks in developing markets helped its first-quarter profit rise 26 percent, reports the Associated Press. Frito-Lay North America snacks sales rose slightly, while sales of snacks and beverages posted double-digit gains in India and China, Pepsi said. Beverage sales volume was soft in the U.S. and Europe as shoppers reduce spending and switch to juices and teas. The international gains mirrored rival Coca-Cola Co.''s results earlier in the week. Coca-Cola credited the billions it is spending in countries such as China, India and Brazil to boost manufacturing capacity and marketing for the improvements. The world''s top two beverage makers are racing to ramp up in these countries as their economies develop and lure buyers who can be lifelong customers. The company, based in Purchase, N.Y., said it made more investments in key markets such as China and plans to increase its spending on infrastructure and research and development in the second quarter, though it declined to give specifics.