PepsiCo, Inc.: Portfolio Diversification & Innovation As A Vital Tool For Growth! 

PepsiCo’s results for the third quarter of 2024 reflected the complexities of navigating through evolving consumer habits and geopolitical challenges. The company reported a deceleration in growth due to several factors, indicating both challenges and strategic initiatives needed for future growth. One of the main highlights is the Frito-Lay segment, which, after experiencing significant double-digit growth over the last few years, is expected to normalize this year. PepsiCo identifies the shifts in consumption patterns among consumers, especially Gen Z, who favor snacking and mini meals over traditional eating structures. Despite a challenging year, the company expresses optimism about the long-term growth potential in the U.S. food business. PepsiCo plans to cater to these consumer trends by segmenting its brands, such as Lay’s, into multiple tiers, offering consumers value-oriented, specialized, and premium options to maintain brand loyalty and drive growth.