Sales rise at Pepsico despite consumer spending slowdown

Pepsico, the global American beverage and snack company, said sales of its snacks and soft drinks are continuing to grow in spite of concerns in consumer spending.

The world’s second-largest drinks firm announced a 4% rise in sales in the 3 months to end of December meeting analysts’ forecasts. Last month, the firm reported flat US sales.

Pepsico said that net profit for the quarter was $1.26 billion, 31% lower than in the same period in 2006, which was boosted by a tax benefit.

The company is second to Coca-Cola in global soft drink sales and owns five different billion-dollar brands including Pepsi, Tropicana, Frito-Lay, Quaker, and Gatorade.

In September last year, the company set up a partnership with Starbucks to sell Frappucino bottled drinks in China.

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