Pepsi Co. (NYSE: PEP) climbing up the rating chart

On October 9, the 3^rd quarter results for the stocks of Pepsi Co. (NYSE: PEP) were announced. The company witnessed an all-time high of $96 and went on to enjoy a 3.1% yearly increase in its Q3 revenues. With a global rise of 1% in the snack and beverage volume, the company has a reassured status in the market. Pepsi Co. (NYSE: PEP) has achieved huge profits in several global regions.

In North America, the growth of carbonated soft drinks (CSD) is declining as people are switching to healthier options, such as the ready to drink teas or Gatorade. Pepsi Co (NYSE: PEP)’s CSDs marked almost 15% sales in America. Similar trends were observed in Pepsi Co (NYSE: PEP)’s Q3 figures, as CSD volume fell by 1.5% in North America. However, the volume for Gatorade and Lipton RTD teas increased.

Pepsi Co. (NYSE: PEP) has managed to attract growth by improvising its profitability, by strategic packaging and cost-cutting.

Pepsi Co (NYSE: PEP)’s smaller sized packs have been quite popular amongst consumers, despite the fact that they carry the same calories per unit as the regular ones do. The only difference is that smaller more expensive cans and bottles have less sugar. The sales of mini bottles and cans have ended up at 2% annual rise in the profits generated by the company in North America. Pepsi Co. (NYSE: PEP) declared that the 12 ounce bottle sells at more than 100% premium with the 12-ounce can.
Pepsi Co. (NYSE: PEP) has taken initiatives to do productivity savings. The company aims to gather $1 billion in 2014 savings. In 2013, the company managed to save $900 million and targets to save another $5 billion in the next 5 years, by optimizing global manufacturing operations and simplifying the systems within the organization to improve efficiency.

Pepsi Co. (NYSE: PEP) had been expecting two-thirds of growth in revenue to emerge from developing countries by the beginning of 2014, and so far, these expectation have been met. The organic sales in emerging countries saw a quarterly growth of 8%. In India and Egypt, the company’s revenues grew by double-digit percentages, and in Chine and Turkey, revenue grew by single-digit percentages. The growth in Russia and Brazil however is the talk of the town. The two countries are important markets for Pepsi Co. (NYSE: PEP) as they make about 10% of the overall sales. The high commodity cost and the value of U.S dollar were the hurdles for Pepsi Co (NYSE: PEP)’s market in Russia but what went in the company’s favour is the fact that most of the products that the company sells are manufactured in Russia itself and a lot of the raw material are purchased locally. Due to this Pepsi Co. (NYSE: PEP) didn’t have to go through any hassle as far as import bans are concerned. The inflation in the country caused the price of the beverage and snacks to increase, but the consumption was not affected because of the price change.