PEP - Earnings call transcript Q1 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning and welcome to PepsiCo’s 2021 First Quarter Earnings Question-and-Answer Session. [Operator Instructions] Today’s call is being recorded and will be archived at www.pepsico.com. It is now my pleasure to introduce Mr. Ravi Pamnani, Senior Vice President of Investor Relations. Mr. begin. may you Pamnani,

Ravi Pamnani

our Good this I press morning both available prepared operator. had release everyone the remarks, on are which chance to of morning, you, hope everyone. has and website. Thank review our

Before our We on make statement. our on may the XXXX plans, business. please outlook we including potential forward-looking our about COVID-XX impact take of begin, call, of cautionary note today’s business statements and the pandemic

Please of today Forward-looking our factors differ reflect as results. statements from for to inherently our actual our obligation exclude no reported information refer available uncertainties materially regarding XX-Q reconciliations that results risks results, which earnings items certain including to refer statements. and on discussing and we only and and a to discussion additional involve and may non-GAAP could definitions When results, under measures, to from are cause of view pepsico.com update. we of today’s release forward-looking and non-GAAP measures

me question. and CFO, Chairman Joining turn to for Chairman please We I that ask question. with PepsiCo’s Johnston. limit first that, the and Laguarta you and over And today the will CEO, to Hugh Vice one Ramon it PepsiCo’s yourself operator are

Operator

Thank of Morgan from Stanley. Instructions] first the you. [Operator Dara question comes Our line Mohsenian of

Dara Mohsenian

guys. morning. Hey, Good

substantially we the quarter in commodity us And in board wanted in CPG Texas term more sense been then And of mentioned really some spectrum I across up a) gross end b) of pronounced supply ex we time year-over-year. core. rise prepared out give would the you that the a chain mentioned spend can and lately, to one have the is have you some you So first, – obviously seeing what in those longer just the on certainly, in the are at remarks? gross looking just challenges margins; margins acquisitions adjusted quarter

like feel on as do higher how we in expect commodities? how XXXX, am you commodity how much in it aggressive an from your for do in these pricing? given an do as you Can through that approach more the But a like in flow interested is you are XXXX standpoint? strategically or commodities increase? I environment, really fully certainly covered normal organizational Thanks. organization we commodity it later more approach higher year because of outsized that talk an even you into does theoretically spectrum are we So, does about seem And look can that P&L sort what event the

Hugh Johnston

Dara. jump Yes, on question that I good will one, in and Thanks morning. for the

and look to we acquisition before If have we the finally the expect that. the Pioneer over really international mix primarily impact M&A, quarters, that’s driven out last recent continue primarily decline last lap margin the you gross into QX been three by our is had of at of that the really we quarter

in packaging. ‘XX, is been and of it’s into higher but inflation, of the input terms In agricultural ‘XX notably guidance, certainly there terms factored

costs that fairly transportation our of In than are to right so And just commodities. and more also now. we do accounts basket, no higher commodity all, have we again, that, exposure XX% addition you have out in we the experiencing single factored to to a for freight there remind broad

have pressures eye basis obviously, point decline, country. a basis came M&A the always we up middle experienced in QX, of proposition mitigate points very that opportunities XXX it In out basis as our net together, revenue approach surgical as the storm pressures. holds between being we productivity the balanced in our all about take in the the with will terms points result then making winter of the this managing sure the is that always XXXX, up XX and And towards of of of put well and with a we of consumers. marketplace If brand XXX that driving international it, came have we that about to out I for management

the that I to expect in of Going the half considerably. the put year, margin back probably back we into would flattish gross forward do And half range. our moderate

before ‘XX, speculating really we cycle, that early for As it’s I something on. that think some ag to the talk are probably products that. to about we wait in I commodity on that’s premature so we months start mean ought particularly

Operator

question the comes Goldman of line Herzog from next Sachs. Bonnie of Our

Bonnie Herzog

strong morning, toughest Good you. really year. the quarter the had of Thank I being everyone. on a comp despite certainly, Frito-Lay, question a

strong that you maybe could some sense sizes? winter on the hear if sizes to business in curious how any your then without you yet And separately, pack how have been portion to a Thank could why? large this business understand expect of pack growth of just not, around And still Are So, give at results down storms? are drill majority us if consumer the could maybe finally, you help momentum driving further of you the Frito-Lay and consumption have then recovery seeing us and seen patterns in you. trend? and that impulse the of you the

Ramon Laguarta

share Yes, most The Hi, X their in accelerated on take of of a last I performance. months, X has good couple the Frito, morning, one. in Bonnie. performance will months. last Frito notably the this highlights

we the have chain our to and capabilities, So, to that the good feel brands execution sure our but been part. make smaller investing share. big brands, started that brands, supply our only about not we we in gain And

are Frito winter at because of infrastructure a the of have lot Obviously, positive. depots as we storm, in lot impacted was south, our there manufacturing the particularly and So, the by that’s look the south. numbers, QX very in you

impacted. it particularly So was

we that manufacturing both chain and close So, now. a and having are to normal from actual are slowly situation, raw we recovering very materials supply

is small consumption past fact the we on a question certain snacks more more beverage to the structural is extent, also a and business. are I trends, that discussed business and Your the consumer have in we in the portion seeing that in there think trend and

an smaller the I form in has growing team that in at So there around consumption, like now lot multi-packs, that more consumer think the And given that increase is home is more package multi-packs it drives fastest. the growth that there. especially that’s drives good performance units, the of variety, a of eventually personalization very given we been seeing providing which creating consumers combination and of are

going a to trend business. I be think in that’s that structural

small on mobility, consumption we definition which trends Now, around seeing consumers in U.S., in impact obviously, and to large both more, are question by your a in positive much moving the yes, has format. format

growth format. large format channels more small seeing and are much in we single-serve both So,

have they information all uncertainty we next are about much back to the around those trends how they behavior months the in consumption, their and are consumers There meals consumer more So, go I offices, seeing. some are for as decide much working of that some is we venture in-home few going to how day. out still think during

obviously a we have those our insights based all we – of are on future and are insights. projections lot So,

I months think X we the to as next, consumer would will the show us X I in go yes. more say, along

Operator

comes Andrea question the Teixeira JPMorgan. Our of next of line from

Andrea Teixeira

you. morning. Thank Good

pantry the are likely back to winter the I the before, as disruptions quarter you. go load, initial the mentioned to top lapped behind but of wanted storms the I as cadence also and of you obviously So, line the

any exited quarter was you are And your second, strong of two-parter Number more improving So packs. pressures RGM and seeing the you. one, the you as question. large with your less foodservice of has opportunity to, some a by mitigate worldwide? Thank negative and cost that, pricing? size then the pack impacted pretty business, the seeing Are of been it’s negatively that obviously, large along part with portions you price/mix the

Ramon Laguarta

going go levels our as as are year forward. business. in on recovery are good and obviously both and lapping of the especially seeing the in should across yes, be see to Different consumption, different foodservice, that better are general, much we obviously will very channel Good better positive Andrea. we we well. last lockdowns and trends, for morning, but we Yes, that and have beverages channels see in-home traffic implications seeing we foodservice Obviously, in within of that trends we snack as are

equilibrium So was going a I Andrea? the consumption one, second I forgot, new sorry, – The rest think we what will of forward. see

Operator

been sir. closed, has line Her

Ramon Laguarta

I in foodservice seeing in listen, future I what growth of the yes. that and are Well, Okay. trends, said of consumption think will future portfolio, to terms we determine Bonnie what earlier our

Hugh Johnston

add mobility increases, which just Yes. and large will obviously I to us. tend package to more on asking for implications to small Ramon, has role, a package as also take positive she small was margin versus about prominent obviously that, package think

Ramon Laguarta

two structural about, categories trends the of what Yes, was lines yes. continue are in forward, will our which format along there small that some on telling is going Bonnie I

Operator

line question Barclays. next Lauren Lieberman the of Our of comes from

Lauren Lieberman

this talk margins. promotion a talked could think to about margin Hi, cadence? a about significantly lower mix, I little the Thanks. helps we thanks. or I a am bit. that trajectory? this start little in wanted Good to through were margins those about in objectives a up guessing They up get cost bit morning. XXX channel maybe portfolio know mix, points basis savings. this have quarter. I you PBNA of to key more should talk how is Is the and quarter of bit But improvement you about if just some it that of one-off the inputs drive

Ramon Laguarta

hi. Yes,

see at PBNA in a multiple to few is now that a the have the referred realization we What we margins I vectors efforts QX doing think team quarters. we been of for in the are improving earlier.

also productivity across team journey portfolio you better the management as better is revenue that is, There there is important but say, an mix. the different channels, So started. there a

also our levers are cost of many unit per P&L, So, the across improving.

P&L. both a So management better better and mix a cost realization better seeing we through price management, the are

are better We on a returns also our seeing A&M.

go the from probably so and A&M vectors ROI will PBNA. our A&M also these profit of in lot seeing will different are overall give the that multiple us getting on to as improvement a good opportunity output our forward an elements which of drive we better, optimize We year,

Operator

of comes America. question the next line of Bryan Bank Spillane of Our from

Bryan Spillane

the stage as really are so will kind unfold – currently marketing to things are trying like at understand you of that at terms normal reopening, I was guess I total of was down given to I we on, in all efficiencies. Was like you the a it company. today just looking sit levels or still of spending on Maybe reopen, kind whether not or yet am do it that able down, you XX-Q, segments. more lot seems good to But sure not marketing for that? in wanted was there morning. spend of really at is but Hey, made down just up importantly, the or the full in to not up comments follow-up environment marketing at advertising if you where Ramon, A&M the or was of just or wondering level or are

Ramon Laguarta

good continuing ROI A&M gives Bryan, at listen, because terms get one company. we of across I in to marketing what Hi better can different marketing in a getting rationally. year that think much A&M And different we our the really a continue the equity positive brands, the brands. been Having are different develop we optimizing last us is to on budget of sizable position always at meaningful that, for morning, brands to types our better And didn’t very types different measuring continuing invest compete brand has of to that, and of our and right the the the the got said of do content. are the understanding the channels, we

we continue our to as – development. channels, across – long-term in are company, the are in and do have to brand terms both to position growth strategic trying return with the we we as Obviously, big to geographies, make of brands every a investment trying highest is clearly, that on and opportunities. we different invest driver we So that of A&M, A&M are

of inputs. the So the combination that is number end – a P&L in those X

Hugh Johnston

presents just can have expect it. to the And In of level maintaining itself, Bryan, answer add North lower the past be that well. opportunity at certainly degree competitiveness. America as I your spend about on advantage if talked we we that Beverages, to Ramon, may to take opportunity while to a in an Hey, particular, there

Operator

from comes Grandet Laurent question line the next Your of Guggenheim. of

Laurent Grandet

be to Yes. of the Good energy Dew focus the smoothly, understand with reception if Bang, like which like to U.S., your would to revamp to Mountain new bit Rise specifically morning category on situation in would the the the the a more so. say offensive everyone. can Rockstar, launch the retail I in we of and energy seems I getting

so some So I Monster segment offensive really sales having – and retailers you. before important because of there? that more is players, more dynamic understand even is Thank understand with how many the own to seeing like its force, the than becoming your are to

Ramon Laguarta

lot you. but us thank Listen, not with a of for focused internationally. category Good, U.S., a effort, it’s only clearly also the in Laurent,

by components So, different on let the one go one me of it.

thing I have Starbucks years which you continues now, been would Energy on grow it The is, first working segment, as to the know, say, digit. double many for we

very is and us. defensible unique that So for quite

Our double very partnership triple to Starbucks relationship. continued double good very, grow with shot, a shots a digit. at our And at is

you the nicely. Now, couple when growing actually you of business said, go a the energy, is into and things, Bang pure as very stabilized

we done strong When brands, would the comes very very phenomenal reaction it teams our think on morning is So, there energy consumer good in customer, our I and unique our Dew a early from job that’s and are early, need trial, insight positive our a I on Mountain drink is particular very part. reaction to a R&D differentiated. feeling teams that Rise. for have about the very where that a product a say, finding Clearly, but from marketing

it products, are the trials. I of good. I brand, think, and think and re-launch Early very teams job delivers Rockstar, think international comes market, what again, to you with And positive the and terms Lebron flat a compared are getting the know, very, launch in consumers net We to and on have X the on front. brand. new new brand But early the – good The whether quite full also signed are that. graphics When the and in is the the sales started and to the for consumers brand that’s call here and growth. reads really would early repositioning in quite, weeks really of awareness negative the in very repositioning. the with a the Super of done feedback with I very to The U.S. stay It’s high. it’s the I to we good say, early territory advertising the with too as very we we the only reformulation going from was the now distribution. with great it’s create, those whether teams are Bowl James, early bringing the And with consumers positive retailers on with new product to

we it good four at really the level, vectors. a a and are reaction, consumer have selling And with to upon to the brand but in we makes future build from few going which us quarters feel confident think I need to customer innovation start events, that from from the more [indiscernible]. and very understand future happening across good what’s the foundation positive so

Operator

of next of Azer Your question from Vivien Cowen. comes line the

Vivien Azer

Hi, strategy, good to discuss I morning, innovation your was beverage please. hoping

week in As Rockstar that last we Germany, noticed Hemp. launched you +

appetite that the you discuss even a you. offering introduce your to please? product, So beverage that, in as please it plans for to U.S., And or then related offering Thank that can CBD to discuss relates broader beyond can also your you Germany? hemp

Ramon Laguarta

Germany. yes, world, testing the Yes. of see, I lift very we for a test drinks the country. segment different are Germany and will spaces. And There would we is in the particular listen, performance hemp depending is will Hi on and say sizable we in to across products decide innovation of consumer shift. that the Vivien,

that. for I broader read company. conclusions will We the wouldn’t any broader take

on energy the pure Our focus now is category.

well the morning propositions. by open We I have And that occasion coffee existing bar. identified is think also an we the have opportunity as not covered

to have where other globally. learn like opportunities portfolio will some test focus. the would we some we and other have priorities team And that of in we from We our the

Operator

comes line question Barclays. next of Lieberman from Lauren of Your the

Lauren Lieberman

been talk was with months if that right point, very got wouldn’t being bit little in the Asia, that New you. again. And only portion. terms X about have about China because sense COVID I very, China to Year the has there in been Thank I guess I hoping my growth I the strong. just a this at with is comparisons severe, of am Chinese of two-thirds

bit talk share on be Thank China, you. on little I could wondering if China. are differently Yes, is about there anything curious was would a update you there, I progression? if doing So you an

Ramon Laguarta

you. how than is bit Thank special other a is countries around case, given different clearly China Yes, a in now very that of a world. cycle COVID the

We are seeing noise different New Chinese there bit obviously, Year. QX – is numbers in because the of of a little timing our of

that But mobility year. this positive gain are Part On very we fact a the we year China was in in that of consumer last versus that. there the share. of we clearly, very capture Year snacks, having year. of Chinese from consumer terms So top that, good in are it, continued more New said China spending, is this in benefiting and obviously trends to performance

manufacturing. are We building new

are new programs. building We agro

building has rural distribution – our Cheery, business that of in of potato snacks business. which we have are, a Be been a portfolio building that areas company & are is We which Chinese we strong know, And we snacks, bought macro you we are chip our as for investing for years. many complements better

gaining we improving, business perform. And where category. been share very a holding numbers very, bit general. is the China growth Clearly, high on little – categories mobility, side, share, the have beverages, encouraged very On With capital made by it regards would distribution. positive snacks rural say, more areas the is on in is by in China category investments it’s a I the the in and the the for by we giving the away-from-home share, really been that we of a have very performance return to in the positive and

was the we and out the are economy of in Obviously, recently about as feeling by very laid growth and year balance market government, and are the country. is are changes in that consumption. massive is The good expectations of So channels we that good the seeing in about seeing the positive consumption. dynamic China what a feeling China of

of are in need chain e-commerce there as a to channels entertainment, type lot be very are So, and of for spend. supply us. continues of that way driving of changes But opportunity adapt their and important marketing country, and their and new consumption it the kind social a channels to in the business companies very new developing, a channels consumer large overall,

Operator

of line Kaumil comes Suisse. Your from next the Gajrawala Credit of question

Kaumil Gajrawala

of and talk diversity you you covered can can in commodity price moment? talk in maybe what pressure fading bit labor the any well Hi, on terms there commodities and of being terms should P&L the bit base, at as staffing, of cost in year-over-year you a COVID costs – what the the mentioned be about and you COVID – little of a as are about your are costs that we expecting seeing

Ramon Laguarta

society. Hi Kaumil, we the with On COVID, yes, two are – largest we obviously things. go

is there the our drop in cases, in we that goes U.S. whenever down. seen a So costs have And

We early but have a we the parts of other now. seen world, quarter, seen In see we drop more really. reduction, a then in haven’t cases the

Latin you if we seeing year. if the think of late we are Africa, see much number about Europe, about America, the you that think So, same cases pretty actually in

will pandemic a is will able And broader society the in the year, level go – our to continue government or to factor. than different obviously, be be, to a manage we geographies. but with COVID lower is So, costs there continue the how to last

part? take So, Hugh, other the do that want to is you the situation.

Hugh Johnston

Yes.

of labor okay. right the pressures, now, in terms actually U.S., Kaumil, In it’s

well We employees of reasonably and labor haven’t now. get to able inflation seen a we are right lot

that year, now, forward and costs But to as to as same to neighborhood know, I right least, the was our to fine going that’s as going $XXX remains ought had COVID million time, So it to commented the million you up. $XX picks COVID to as as And away, tend as be was economy as to are go the last as – seen go And alluded front. a cases We obviously, our away around well, well. at exit we about, Ramon somewhere period. we doing in of Ramon noted, the have quarter believe number then $XX costs. on how for as over million before, rate on I given sequentially of see stay that decline play the

Operator

Bank. the Your next Powers of Deutsche Steve question from comes line of

Steve Powers

good have off call, to part the as that up North period other inflation cost Hi, when I inputs Thanks. in especially in dated impact follow-up morning. in to is we structural tend the Yes. Frito-Lay, corn in and where Maybe that a America, and long of advantage peers. started programs a past, because seen Dara and versus think be time my versus perception more PepsiCo your often ended for hedging just competition has Bonnie

I if a that to is guess fair do maybe that the year improve as that a in phenomenon while how guess premise an are advantaged you consolidate about underlying share in see see that do, do I you perhaps and so, well? profitability, more you is combination? the shape correct Just if you first So, more opportunity and you place. bit current my if Thanks. taking as or are And thinking

Hugh Johnston

If in the on right. group. My a I will have Ramon, with that is you Steve, jump now, obviously, we competition probably sense diverse you one. pretty are right that it’s want,

to play. In Frito-Lay are business, little We our bit the sort going a further we run are of probably out.

pricing And we against expectation see will we is strategies how responds our those. place and have in to We my will now, competition right them. frankly, execute

operate. internal mentioned is in we’re a period $XX into question. Kaumil’s want regards periods But locked will I we little I in of pricing have by I one it’s thing million million the But bit use what for how for looking large, plans clarify do we of think will. to me place. $XX course Yes, to techniques hard think use. the did year. we’re some large, and So to by – relatively I that term net to we management to during next are and to they going few it of surgical the quarters? we, revenue project our Again,

costs. probably million then $XX qualify on the the $XX million progresses. is had year as see So And quarter a to COVID rate that we’ll I we exit should where as we land that

Operator

question Rob of next from Ottenstein comes Your Evercore. the line of

Rob Ottenstein

much. very level sort turn where you on the U.S. CSDs Thank Thank Great. promo it like maybe in percentage us year? kind in the beverages to wondering if question I want on and if was to a I kind in you promos the just of of sold And help down of of where you. looks set was XXXX, the XXXX, it and to for quarter fell of your for in it rest the what expectations

Ramon Laguarta

management Yes, our and we the we’re in for players lower the Robert, the this And than best I year. I was the improving net of expectations we many for understand shortages, a on the rational all U.S. is so in last balance more think, promotions our we QX seeing in working point market in of we’re we’re sophisticated, the at seeing had the promotion. And supply the getting listen, we’re capabilities becoming on rational In – the partners and point, the return in understanding in QX, we in be year. very that category. had this are environment should with promotions revenue at a becoming on level that At the that QX return from still pricing better there think promotions our and seeing – time. category, what of

will industry I position. market there And the to we’re ourselves. similar a So expect trying and the what that a follow a would next I likelihood remain is rational is do for – a think rest that’s there quarters, of the probably the high

Operator

Grundy next Your comes question the of line Jefferies. of Kevin from

Kevin Grundy

to union course, just was you key of Great, Good of I thanks. Ramon, everyone. Thanks wanted to state for question return Beverages, share of CEO. this, progress overall The the brands, when big for you market a for Mountain Pepsi, as America the morning Dew, sort relates over to Gatorade. taking North focus because question. took

Nielsen has quite drinks been data, of bit a in Gatorade lose performance share. a bit continues Looking mixed, to where sports particularly at the

segment your helpful. the of you. be you overall just to in would as if particularly comment level coming adequacy years Thank satisfaction that – on as trends, So the but year, with in not restore the you investment, could this in margins of well, look here

Ramon Laguarta

Thank laid to good beverages of you. Listen, competitiveness it brands that time about very very, we of I and our brand very And and out competitive. make we’ve America. say, done sure ago, one really North a feel consistently. go at couple became in one as we And each years would we big our in very a wanted surgically

Mountain of continues So with – strong, some growth growing it’s of again innovation, share Pepsi the added because contributing Gatorade starting now not right? the quarters, but mean of Dew is at that Dew but is and again, X X drink is brand Pepsi. very rest been X.X quarter, good last growing brand. pending the XXXX CSDs, our Mountain third, bit Gatorade not two last very the And growing And – has growing top the We we’ve which growth share sports the in growing longer not of growth gain a XXXX. by third we to for if I of started our at being competitors. It fact a category, in level. years and it’s level been what the very took Dew, the high, good especially also the then Zero, our was for base an in but We went in amazing Gatorade, in outgrowing but has our the only us been brands to last of overall with only a second-largest you brand. Mountain of see it’s the in LRB been has little portfolio. in platform yes, And Gatorade

the we’re core to want we So at continue pace we we that our fact or be very starting or That continue to above. said complemented consistently the brands with three to category see growing be – in always U.S., right? sub a the where outgrowing category of to that everybody in coffee, So leaders else. segments are segment beverage take large clearly the the you in some growing faster, if

also share Leaf we’re our our teas, in brands. see Lipton If gaining teas you Pure with and

has you about think sparkling success. been water, bubly a big If

periphery, play our to would the I brands we’re continue of we core making, good for progress and and but the So what overall what consistent are in very business on say, category. very meaningful the obviously,

happy. very we’re So

We continue will improve. to

next energy earlier. we each multiple said incrementally dynamic as will as a is space what drive, tools that – in very earlier, where mentioned gains very to other big I hopefully, category, that we to have Laurent well As our use in share is

we very So good. feel

more Beverages will becoming is for becoming last, I that think that agile. of our business North in be is for a very America today much in X future, business more we see given business and whatever, The becoming hopeful this year years. that that performing trends a the competitive. we the brands. about we investing much the more so lot thoughtful activities in is market we’re The positives much the pretty the good and performance for And see the the have that planned business

So we’re feeling good.

very feeling about PBNA. We’re good

Operator

of of Your from the next question line Sean King comes UBS.

Sean King

does or comparison incorrectly mix more just beverage? account into about sort snacking with the morning. respect snacking the a for any of effects I the beverage dynamics on side good versus margin am international international versus to focused, And your take margins outlook maybe tougher but thinking Hi, negative rebound of

Hugh Johnston

in jump what you one. Sean, yes, I’ll for just Yes. outlook our Yes. Yes, described. on account that does short, in

all we’re snack the to Overall, a a but lower on be the those in company. a outlook bottling anything is franchise U.S., business, don’t of [indiscernible]. of captures course where disruptive to XXXX. operation a mix we where to operate over Obviously, our I be little expect of tend beverages impacts. margins of company sort So outside higher-margin the terms franchise relative margins

Operator

will line Fargo of come from Securities. question Carey final Our Wells Chris of the

Chris Carey

Hi, good morning.

a Just to prior clarify answer.

with that whether division, we’ve which Is related you that view between pricing, just that back seeing categories it can trend approach you for overall pre-COVID split just expect over to promo about. in you more. that Thanks. lower is overall power going certain remain rational. levels? PBNA, or price and didn’t normalization is been quite then how think you remain I long to way was mentioned in forward? it to a it talk the comfort directionally your high Can just talking You pricing a a and historically And price that volume-driven about a were get you to brands or this imply structurally you term expect the question

Ramon Laguarta

and Hugh, want do start then complement? to I’ll you

Hugh Johnston

is that Yes. the around the in be an North on compete, one, Happy as well To the competitive think both and is price for innovation from primarily and as do Ramon. to term clear we structure we Beverage standpoint brand execution. marketplace, rationality of which what opportunity yes, think that to, building longer term, you way there what right American is

the well So based in right we think is going happening set That’s for be now. up the a what’s on not environment temporary thing environment pricing to positive forward.

Ramon Laguarta

Yes. knowledgeable and of kind Chris, I becoming we’re everybody apply capable think on what promotions more and and Hugh consumer said, and pricing insights seeing to elasticities.

the is think And down, those today. I which very a with is be And just levers more going rational some there good application provide and trends break we’ve so probably to to we’re as the incentive see prices seen anybody going value for inflation so is industry. we little in the of of rather the to don’t of environment idea commodities driving on, what obviously, very for in see to that a set to consumer big than multiple anybody

about industry. partners in our we’re that’s and talking of retail it to So how how the some we’re thinking

Ramon Laguarta

Okay.

think I last was that the question.

your you you. thank thank hope placed it. you’ve Thank and guys look especially, stayed for I much very with very to future that forward safe for your this So appreciate all much, you you morning. the much and time very us And Really meetings. investments. you healthy. Thank I in confidence

Operator

session. XXXX does question-and-answer That earnings quarter PepsiCo’s conclude you. first Thank

disconnect. You may now

PepsiCo (PEP) 15 Apr 212021 Q1 Earnings call transcript