PepsiCo Q2 Beverage Sales Decline in India Amid Early Rains, Global Growth Remains Buoyant

PepsiCo reports a decline in its beverage business in India due to early rains impacting FMCG demand, but global growth is buoyed by no sugar drinks and food volume gains. The company's beverage share has been aided by the performance of trademark Pepsi, which has been bolstered by the expansion and success of low and no sugar offerings. International beverages business delivered 9% organic revenue growth, while international convenient foods business delivered 4% organic revenue growth.

PepsiCo Inc. has reported a decline in its beverage business in India for the second quarter (Q2) due to early summer rains, which negatively impacted fast-moving consumer goods (FMCG) demand. Despite this setback, the company's international beverages business performed well, delivering 9% organic revenue growth. This growth was driven by the success of low and no sugar offerings, which now make up nearly 60% of Pepsi's volume mix in key markets [1].

The company's international convenient foods business also showed resilience, delivering 4% organic revenue growth. This growth was primarily driven by strong performances in markets such as Mexico, Brazil, Colombia, India, Egypt, Türkiye, Saudi Arabia, and Thailand [1].

PepsiCo's Chairman and Chief Executive Officer, Ramon Laguarta, highlighted the company's ability to navigate challenging environments. He stated, "We’re encouraged by the acceleration in our net revenue growth versus the previous quarter, with our businesses effectively navigating through a challenging environment. Our international business momentum continued" [1].

The company's beverage portfolio includes trademark Pepsi, which has gained market share in major markets such as China, India, Mexico, Brazil, and the UK. The success of Pepsi Zero Sugar, a low-sugar offering, has contributed significantly to this growth [1].

In its North America food business, PepsiCo saw an improvement in organic volume trends, with the company stepping up commercial activities and introducing new product innovations. This led to a 1% increase in volumes despite a 1% decline in the overall food business. The beverage unit saw a 2% decline in volumes, but this was offset by gains in Latin America and Asia Pacific [2].

PepsiCo's revenue for the second quarter rose to $22.73 billion, beating analysts' expectations by $0.45 billion. The company maintained its annual outlook and reported earnings per share of $2.12, which exceeded market expectations. The company expects organic revenue to rise this year and for earnings to be flat with last year on a constant-currency basis [3].

The company continues to face challenges such as higher supply chain costs and foreign-exchange headwinds. However, PepsiCo remains optimistic about its future growth prospects, particularly in the international market, which accounts for about 40% of its total net revenue [4].

References:
[1] https://www.business-standard.com/companies/news/pepsico-q2-india-beverage-sales-decline-amid-early-summer-rains-125071701359_1.html
[2] https://finance.yahoo.com/news/pepsico-revenue-rises-despite-lower-122600903.html
[3] https://www.bloomberg.com/news/articles/2025-07-17/pepsico-beats-estimates-citing-strong-international-business
[4] https://www.reuters.com/business/pepsicos-results-exceed-expectations-international-growth-soda-demand-rebound-2025-07-17/