International Business Growth
The international segment is the largest growth engine for PepsiCo, showing a solid 5% growth in the quarter. Key markets like Europe, India, and Brazil are performing well, contributing to the company's overall growth.
Improved Operational Excellence
PepsiCo is focusing on operational excellence across its business units. The company is improving execution, cost efficiency, and leveraging better data and systems, especially in its Frito-Lay segment.
Positive Performance in Beverage Segment
The beverage segment in North America is showing improvement with Pepsi gaining market share and Gatorade regaining share in the sports drink category. Margin improvement is driven by operational excellence.
Portfolio Transformation and Innovation
PepsiCo is investing in portfolio transformation, focusing on offering more options like increased functionality in snacks and expanding in new segments like protein and fiber.