PepsiCo 'loses out' to Coke

Beverage giant PepsiCo's Q2 net income dropped by three per cent leaving it lagging behind rival brand Coca Cola.

However, revenue for the beverage manufacturer rose by 40 per cent and sales in PepsiCo's US beverage units began to improve.

Foreign currency fluctuations and charges related to the company's buyout of its largest bottlers were blamed for the fall in net income.

PepsiCo’s snacks and beverages brands all saw high growth in developing economies, while growth for the cereal brand Quaker was slower than other businesses.

Over the quarter, PepsiCo's energy beverage brands, including its Gatorade range, dropped one percentage point in shares of the US market, while energy drinks by rival Coca Cola fell by 1.4 percentage points.

PepsiCo's Gatorade beverages are available in more than 80 different countries around the world.

The line is performance beverages which are designed by sports nutrition experts who made them specifically to rehydrate and reenergise.

Posted by Phillipa Atkins