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PepsiCo’s Mini-Sized Sodas Improve Quarterly Output

PepsiCo quarterly income and profit beat Wall Street estimates on Tuesday, boosted by better sales of its traditional Pepsi soda in addition to snacks Lay’s and Dorito chips.

Beverage sales rose in the quarter as the corporate’s packaging approach to move away from large cans of sugary drinks to smaller ones that have higher margins helps it add customers who often prefer to ‘indulge’ even while preferring healthier choices in the long run.

Chief Financial Officer Hugh said: “Core Pepsi is what’s driving the improved efficiency in soda.”

“You have the customer switching from bigger volume packages into packages that are smaller… however, the worth realization is quite good on them,” Johnston stated.

Earlier this year, PepsiCo introduced berry, lime, and mango-flavored sodas in 12-ounce cans and launched variations of Cheetos and Doritos tortilla chips.

Competitor Coca-Cola noticed an increase in total sales in its last quarter, boosted by strong demand for its orange-vanilla cola, its first such release since 2007 when it launched vanilla Coke.

Pepsi, as well as Coca Cola, have also been selling new products to cater to consumers preferring healthier choices like sparkling waters and teas.

Chief Executive Officer Ramon Laguarta said the corporate would even launch mini and large cans of its Bubly glowing water in new fruity flavors.

Beverage quantity fell 2% at PepsiCo’s North America beverage unit, mainly because of higher sales of smaller packages of juices and sodas; however, income from the business rose 2.5%.

Income in its snacking arm, Frito-Lay North America, rose 4.5%, led by high single-digit development inconvenience and dollar stores, pushing total net income up 2.2% to $16.45 billion.

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