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    PepsiCo India beverages and snack sales fell by double digits in the past 12 weeks

    Synopsis

    The maker of Pepsi cola and Lay’s snacks said in its statement that in the Africa, Middle East and South Asia (AMESA) regions, its “beverage volume declined 25%, reflecting double-digit declines in India and Pakistan, a low-single-digit decline in Nigeria and a high-single-digit decline in the Middle East.”

    Reuters
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    NEW DELHI: PepsiCo India’s beverages and snacks sales fell by double-digit in the 12-week period ended June 13 amidst the coronavirus pandemic, an earnings statement by the New York based beverages and snacks maker said.

    The maker of Pepsi cola and Lay’s snacks said in its statement that in the Africa, Middle East and South Asia (AMESA) regions, its “beverage volume declined 25%, reflecting double-digit declines in India and Pakistan, a low-single-digit decline in Nigeria and a high-single-digit decline in the Middle East.”

    PepsiCo, which competes with Coca-Cola in the beverages space, said the Covid-19 pandemic contributed to decrease in consumer demand, which had a “negative impact on volume performance”.

    The company reported growth in snacks volumes, mid-single-digit growth in the Middle East and Pakistan, low-single-digit growth in South Africa and double-digit decline in India.

    PepsiCo Chairman and Chief Executive Ramon Laguarta said in the earnings statement:“The months of March and April were particularly challenging as overall global economic growth was contracting and restrictions, closures and the resulting impact on consumer mobility had a significant effect on our performance.”

    Laguarta said given the environment which remained volatile and much uncertainty remains about the duration and long-term implications of the pandemic, PepsiCo is not providing a financial outlook for fiscal year 2020 for now.

    The company attributed the net revenue decline in the AMESA region as primarily reflective of net volume decline and a six-percentage-point impact of a prior-year refranchising of a portion of its beverage business in India. PepsiCo had refranchised its entire beverages bottling operations to its long standing bottling partner RJ Corp early last year.
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