PepsiCo sees its sales growth stall as consumers, particularly those in the United States, reduce their spending on non-essential items. The multinational anticipates only a modest improvement in demand for 2025.
Stimulating demand
Frugal American consumers are spending less on soft drinks and snacks, which caused PepsiCo’s revenue in the fourth quarter of 2024 to drop slightly. In contrast, sales increased in Europe and Latin America. Net profit grew by 17 % in the fourth quarter, primarily due to a favourable comparison base, as the manufacturer faced a major recall in North America in 2023. For the entire year, revenue rose by 0.4 %, and profit increased by 9 %.
CEO Ramon Laguarta called his company’s operations “resilient”, but pointed to geopolitical tensions as a reason for concern. The company aims to win back shoppers with more affordable multipacks and plans to stimulate demand by revising existing products and introducing new ones, such as “ethnically inspired” flavours.
