Potato Chips Sales Keep PepsiCo in Balance

PepsiCo Inc. is facing a drop in beverage sales caused by coronavirus lockdowns, as fewer people grab sodas on the go at convenience stores and gas stations. The decline in the company's beverages has been only partially offset by an increase in sales of potato chips, as consumers eat meals at home and snack more throughout the day.

"The negative impact on beverages is more significant than the positive impact on snacks and foods," Chief Executive Ramon Laguarta said in prerecorded remarks posted on the company's website recently. PepsiCo posted higher sales for the first quarter of the year but withdrew its full-year guidance citing the uncertainty caused by the Covid-19 pandemic.

The maker of Doritos, Lays potato chips, Quaker oats and Aunt Jemima syrup said its food brands have benefited as consumers sheltering in place look for comfort in trusted, well-known brands. That trend may continue even as economies reopen, Finance Chief Hugh Johnston is quoted by morningstar.com.