Pepsi revenues continue to fizz amid price hikes       

Company was seeing little push back due to the higher prices on 'affordable luxuries'

Pepsi's domination of the carbonated drinks market with Coca-Cola has helped it raise prices with little resistance from customers, while its snacks business is benefitting from a shift to eating more at home than at restaurants to rein in discretionary spending.

Pepsi lifted its annual forecasts for revenue and profit as the drinks and snack giant raised prices again to battle surging costs while also signalling resilient consumer demand.

The beat-and-raise pushed the company's shares higher and comes against the backdrop of gloomy expectations for third-quarter results amid surging inflation and rising interest rates.

Pepsi's domination of the carbonated drinks market with Coca-Cola has helped it raise prices with little resistance from customers, while its snacks business is benefitting from a shift to eating more at home than at restaurants to rein in discretionary spending.

"In stressful times, we're kind of the affordable luxury, so a simple snack or a beverage... is a relatively small amount of money," chief financial officer Hugh Johnston said. 

"We see our consumer as being continuing to be remarkably healthy," he said, adding the company was seeing little push back due to the higher prices.

The price mark-ups helped revenue rise across all segments, especially in its biggest two divisions of North America beverage and Frito-Lay. 

Average prices were up 17% for the quarter ended September. However, the beverages business, its largest, which houses brands such as Mirinda, 7UP, and Gatorade, posted a 1% increase in volume. 

• Reuters