PepsiCo expects to See 6% revenue growth in 2023
By Joseph Ekeng
PepsiCo, one of the leading soft drink brands, ended the year 2022 on a sound note, and the company is already predicting that the good run will continue in 2023.
PepsiCo has projected that its revenue in 2023 will rise by 6% despite the fear of recession hovering around major markets like the US and UK. Some of the markets that contributed the most to Pepsi’s success in 2022 include US, India, Brazil and UK, which delivered double digits revenue growth.
PepsiCo saw net revenues grow by 8.7% to $86.39bn (£71.1bn) in 2022, while its core operating profit increased 7% to $11.51bn (£9.5bn) for the year.
To ensure that its revenue targets for 2023 are met, the company has assured that it will accelerate investment in brand growth as it looks to build on the momentum it created in 2022.
The brand also insisted that investment in marketing and advertising will be more aggressive.
“We are looking to continue to put investments back into the business, because we think that is what’s driving the top line and consumers are clearly responding positively to it,” chief financial officer Hugh Johnston stated recently.
The business’s priorities for the year ahead include investing in its Pep+ “roadmap” to enable it to become the global leader in the beverages and convenience food market.
PepsiCo has also stressed that Pepsi Max will be at the centre of the brand strategy as the company seeks to rise on the wave of increasing demand for zero-sugar coke brands.
“Zero sugar is clearly a segment of the beverage category that is growing much faster than full sugar all over the world,” CEO Ramon Laguarta said.
Pepsi Max is known as Pepsi Zero Sugar in markets outside of Europe. The business has reformulated the product in the US to bring it closer to the recipe of the Western Europe Pepsi Max. It is also investing in marketing, including the Super Bowl to boost the no-sugar product.
Pepsi Zero Sugar grew 26% in the fourth quarter of 2022.
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