The reopening of public spaces may contribute to increased soft drink sales.
While PepsiCo has not been hurting for money over the course of the pandemic, with sales from long-lasting pantry products like chips and oatmeal bringing in impressive revenue, their signature soft drink has declined somewhat in the past year. While sales are fine on canned and bottled Pepsi cola, as well as Pepsi’s other soft drink brands, one of their primary moneymaking avenues has always been sales in public spaces like sporting venues, which have been either limited in their openings or closed entirely. Now that more people are getting vaccinated, though, public venues are beginning to reopen, and with reopening venues comes greater soft drink sales.
In a statement to Reuters, PepsiCo representatives expressed hope that the reopening of public places as the United States nears the end of the pandemic will boost their sales further. They’re expecting drink sales to “perform well,” while their snack sales will “remain resilient.”
“We had been losing market share in the beverage space in the past… It’s getting better. We are gaining share right now,” PepsiCo CFO Hugh Johnston told Reuters.
PepsiCo analysts have noticed a downturn in the purchase of multi-pack snacks as venues begin to reopen, likely as students and workers are no longer required to remain at home and don’t need as many snacks. However, they are confident they can keep up with any changes in the market.
“The consumer will show us more as we go along in the next, I would say, 6 to 9 months,” PepsiCo CEO Ramon Laguarta said.