Snacks contribute to 40 per cent hike in PepsiCo profit growth
The quarterly total sales for the company leaped to $15.5bn in the quarter ending September 4 from $11.1bn in the prior-year.
PepsiCo registered an operating profit of $2.8bn, up 25 per cent compared with $2.2bn the year before.
50 per cent all-natural goal
PepsiCo’s Americas Foods’ operating profit was driven by its Frito-Lay North America (FLNA) unit as investments in innovation and brand building for FLNA boosted operating profits up 10 per cent and a 1.5 per cent increase in sales.
A spokesperson for the company told BakeryandSnacks.com that FLNA was the fastest-growing food and beverage company in measured channels in the quarter: “We are having great success with our Lay’s all-natural local flavours, which include the launches of Lay’s Regional Flavors and All Natural Lay’s Kettle.
We are targeting to have about 50 per cent of our portfolio all natural by the end of 2011. Additionally, we continue to see double-digit volume growth in our Stacy’s and Sabra products as we further our expansion into adjacent snack categories.”
New Global Nutrition Group
The snack and beverage giant also announced its goal of building a $30bn nutrition empire by 2020.
The spokesperson said that the company was starting from a position of strength, with high quality nutritious brands like Quaker, Tropicana, Gatorade, Naked juice, Alvalle soups, Sabra dips, Sandora and Lebedyansky juices: “Our objective is to position PepsiCo globally as a source of convenient nutrition across four target platforms – Fruits & Vegetables, Grains, Sports Nutrition and Dairy – to put PepsiCo in a uniquely advantaged position to win in the $500bn global market for convenient, packaged nutrition.”
Based in Chicago, the group will be run by PepsiCo's chief scientific officer, Dr Mehmood Khan, who has been named CEO of the new group and will retain responsibility for the company's research and development organisation.
CEO Indra Nooyi said that the company is actively ramping up its innovation capabilities and developing strong partnerships with the scientific community, universities and research institutions around the world.
PepsiCo also stressed its commitment to achieving a set of “industry-leading” nutrition goals that include: reducing the average sodium per serving in key global food brands in key markets by 25 per cent by 2015 and reducing the average saturated fat per serving in key global food brands in key markets by 15 per cent by 2020.
