Pepsi posts weaker-than-expected sales as volume slips

The food giant, which has a significant presence in Ireland through its operations in Cork, raised average prices on its products by 5% for the quarter ended June 15, in line with the first quarter.

After years of price increases and sales growth, Pepsi’s US business is now struggling.

Pepsi missed expectations for second-quarter revenue as a series of price hikes and competition from private-label brands slowed sales of its snacks and soda mainly in the US, its largest market.

Analysts have said that product prices, which are starting to normalise almost after two years of multiple hikes, are still higher than the pre-pandemic levels, giving packaged-food companies such as Pepsi little room to raise prices as volumes shrink.