Market News

PepsiCo's Second Quarter Surges

PepsiCo's second-quarter profit was up 13%—outranking even the most optimistic analysts' estimates—thanks to surging demand in overseas markets. Drinks such as Gatorade in Europe and Asia are the clear growth drivers. International sales increased by 15% after PepsiCo expanded its distribution of sports drinks and Tropicana juices in markets such as China, and boosted promotions for the Mirinda soft drink brand in Argentina. Like rival Coca-Cola Co., PepsiCo has been suffering weak U.S. carbonated soft-drink sales. PepsiCo gets two-thirds of its revenue from the U.S. market. International beverage volume increased 10% in the last quarter, led by gains in the Middle East and China, as noncarbonated drinks surged more than 10%. Source: Canadian Grocer E-Newsletter, July 29, 2005.