PepsiCo Inc., the No. 2 soft-drink maker, reported second quarter revenue of $8.6 billion, up 12% from $7.7 billion one year ago.
Its portfolio of non-carbonated beverages and snacks business drove growth in the North American beverage business. The company also reported that its health and wellness initiatives under Smart Spot products grew at double-digit growth. The quarter ended June 17.
Revenue in the Frito-Lay snack division grew 8%, with volume up 4%. Lay’s and Cheetos saw low-single-digit increases, Tostitos volumes were up high-single digits and Doritos volumes declined mid-single digits. Dips and variety packs boosted salty volume performance by double-digit gains. Sun Chips grew more than 20%.
North American beverages revenue grew 13%, with volume up 8%. The growth was driven by a 23% jump in non-carbonated beverages including Gatorade, Aquafina, Lipton teas, Tropicana juices and Propel. Carbonated soft drinks saw a low-single-digit decline in Pepsi, both regular and diet products. Mountain Dew and Sierra Mist had positive volume performance, the company said.
PepsiCo International snack volume grew 11%, beverage volume grew 10% and net revenue grew 14% in the quarter.
Quaker Foods North America reported volume increases driven by gains in Quaker Oatmeal, Cap’n Crunch and Life cereal. Revenue growth was 7%.
“In North America, our balanced product portfolio has been a key to our results,” Chairman and CEO Steve Reinemund said in a statement.
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