It’s time to stop calling Pepsi a soda company

Pepsi soda sales are less than one forth of company sales

Soda. Pop. Whatever you call it, Pepsi is no longer a soda company. Sure the company still sells a ton of its PepsiCo signature carbonated products, but global sales of soda now make up less than 25% of the company’s global output for all combined products.

PepsiCo CEO Indra Nooyi said on Monday that the company is increasingly focusing on healthy snacks and non-carbonated beverages.

Nooyi told investors in October that focusing solely on carbonated soft drinks was “a thing of the past” while adding that non-carbonated beverages are “driving all the growth in the whole industry.”

Bottled water and unsweetened drinks now account for 25% of sales at PepsiCo, the company announced Monday.

Nooyi says the company will continue to invest in nutritionally-savvy customers who will help “future-proof” the company’s portfolio.

The company did see a 3% increase in sales of its Frito-Lay sales, which includes Doritos, Cheetos, and Lay’s chips.

The total volume of soda consumed in the US decreased 1.2% in 2015, according to Beverage Digest’s annual report. Pepsi Cola consumption in the US dropped 3.2%, compared to Coca-Cola’s decrease of 1% by volume.

SEE ALSO:
Top 10 Most Successful Shark Tank Products

Pepsi is still attempting to convince consumers that soda can be an authentic and craft-oriented option.

The company recently launched hipster, vintage-inspired brands Mtn Dew Black Label, 1893 Original Cola, Caleb’s Kola, and Dewshine.

Only 12% of the company’s international sales come from Pepsi Cola, and that should be enough to give the company the motivation to move well beyond soda sales.

Written by Tammy Johnson

Tammy Johnson

Tammy Johnson is the Retail Editor at BusinessPundit. She focuses on Fortune 500 retail company's and disruptive brick-and-mortar and e-commerce companies that are changing the retail landscape. She can be reached at TammyJohnson@BusinessPundit.com or (929) 265-0240