Pepsi Sales Rise with US Summer Heat

03 October 2005

A long hot US summer has led to better than expected earnings for soft drinks giant PepsiCo.

The Purchase, New York-headquartered company says its powerful Gatorade brand helped drive up third quarter sales by 13% to $8.18 billion (€6.8bn; £4.64bn). Net income, however, fell 37% to $864 million, hurt by $735m in taxes on income and the return of overseas profits to the US.

But the results lifted PepsiCo's full-year profits growth forecast from 8% to 9%-10%.

Ceo Steve Reinemund says Gatorade and other non-carbonated brands such as Tropicana fruit juices increased sales in the US by 24%, while carbonated drinks sales grew overseas, especially in developing markets such as India, Turkey, Russia and China.

The world's number two beverage firm bought star performer Gatorade as part of its $13.4bn acquisition of Quaker Oats five years ago, after arch-rival, the Coca-Cola Company, walked away from the deal.

PepsiCo's snack foods brands, which include Doritos and Granola bars saw worldwide volume climb 4.5%.

Data sourced from New York Times; additional content by WARC staff