PepsiCo: What Is The Story Behind Its Expansion in Non-sparkling Beverages & Latest International Market Penetration?

PepsiCo recently reported its third-quarter 2025 earnings, focusing on the key challenges and opportunities across its food and beverage businesses. Volume pressures were noted in both segments, influenced by strategic shifts like the pivot to smaller pack sizes and changes in promotional strategies. This has led to a nuanced impact on volume, with beverages witnessing slight growth when excluding the case pack water divestment, while the foods segment saw adjusted promotional strategies result in better revenue realization despite impacting volumes. In beverages, the company expressed satisfaction with its volume and revenue growth, particularly with larger brands like Pepsi gaining share. The service levels have been restored to high standards, significantly improving their fill rates and execution at the point of sale. This operational efficiency, coupled with disciplined approach to pricing and product innovation, is expected to support future growth.