PepsiCo (PEP) 8 Oct 242024 Q3 Earnings call transcript

Good morning, and welcome to PepsiCo's 2024 Third Quarter Earnings Questions-and-Answer Session. [Operator Instructions] Today's call is being recorded and will be archived at www.pepsico.com. It is now my pleasure to introduce Mr. Ravi Pamnani, Senior Vice President of Investor Relations. Mr. Pamnani, you may begin.

good and Kevin, you, morning, everyone. Thank everyone review our hope which available has remarks, had to morning are website. our this chance on press of a both I release prepared and

statements of begin, we statements. make including updated plans please our note XXXX on Before our guidance. call, today's take We cautionary may business and about forward-looking

to including our results, on Forward-looking involve risks discussion could that we our refer today, and of as XXXX, actual measures, statements pepsico.com certain third and and third of reflect non-GAAP forward-looking which results our to release and cause available inherently items to results. definitions results, XX-Q of October reconciliations under are update. When Form to non-GAAP information a obligation quarter for additional from no view we Please uncertainties earnings and discussing X, measures statements. factors quarter differ exclude only XXXX from refer materially and XXXX our regarding reported

today are CFO, Jamie Joining and Ramon will that, first Instructions] And with for the PepsiCo's [Operator turn the President PepsiCo's I and operator CEO, me question. over Vice Caulfield. to Executive Chairman and it Laguarta;

Barclays. first Our Instructions] Lieberman with comes from [Operator Lauren question

that maybe this the you kind value isolate and third in then and offerings of say, of clear of Lay's, the offerings the where is backdrop growth prepared of spectrum. in about for some kind and started lot focused from Positive it building the volumes if more that think remarks summer, offered work between, promotional multicultural the So the volume Choice, business. premium let's a efforts in return of the the on and strategy we the I a that tough, Frito end to And quarter, and expansion the you core right you release, blocks trended to wanted category direction still to detail here. in

to rates gets to growth what if will, do for of we Lay's part path kind segments you the that you the business Do of we it drives turnaround or the think are but hold a back avoid about there, other volume forward? about forward, in Or as is the long-term of we contributor? what the X initiatives? a those line kind losses think As the core really move X, that more be and of positive think

in the step for think back me the positive They're about of will category of and being minute. potential about very snacking patterns growth are seen let we Z favor food trends. growth long-term Listen, brands in eating and the Gen If our grow. U.S., that meals, a our the and the food way a patterns long-term of we business We've they're favors category. occasions that mini number the versus that snacking meals more, large the

some of about very is a So consumer what's the long about knew mobility years X think the be it. After of you that's for to and of this good and feel double-digit with situation. happened. we patterns was term, going outsized if year and reassessing The growth we normalization, year financial Frito, growth,

Now to. referred going that grow of will the because think at past category to pace trends the forward, the that long-term I of continue we the

chips to the and And we're will way your growth. at space, the about a playing opportunity we're multi-tier the same a of chips, for seen the we've other as that brands big segments. Lay's, thinking question Now in to on our potato driver continue looking all be potato

the we'll have category salted options brands consumer for potatoes. end of for a permissible lightly And of and to part we a experience. Vickie's clearly And the value the we lot we more stay even So have know and in consumers. We'll we main Miss as or loyalty have more higher category. baked the unsalted will like like where that Lay's, then create provide we'll subsegments upper have within that Lay's have flavors, premium of can provide at

to keep we're other where So the brings want we value stay and some healthy ensure with the growing very the consumers occasions consumers more create long-term specific with long consumers, business. you the about thinking we're -- create should those categories our But us thinking into creates continue can think innovation category that's multi-tier category customers. within is that the overarching that continue for the brand, choices the for about and each category Frito-Lay of for as bring offer to that the we in our to value how into about future to one we brands. the programs, the way our to our to And term, consumers -- category growth, the

Instructions] [Operator BofA. comes question with Spillane Bryan next Our from

that I'm to So uncharted about this preserve investment, you ways, spending trying some or just to line, to my maybe is terms is stimulate guard medium it of how is balance, in I and returns order against question much affecting growth? of, we're ways the the right, planning get the to we're the I demand, between approaching how too affects given the is, it sort while and is dealing them to way guess, do water guess in respond, really, consumer question the -- bottom reaccelerate And just for, top bottom 'XX guess, underneath my how you're finding cost what in I and term. And Ramon, asking thinking line with line? gauge what cutting the how

as for outsized growth. be cost to year Yes. X some Listen, going of Bryan. normalization a years of Great time. I knew -- We about and said, after, we've now thinking been productivity was it transformation

chain, programmatic supply and both our have And will some So centers. next about productivity deploy thinking to started way company. across we And in deploy very the warehouses, these and a automation the continue way been to big we've systemic few are are over platforms distribution manufacturing, that there platforms of years.

data in scale organizing a invested at we can have We way now that digitalization data chain. the deploy value lot a in throughout and our

the to call So as go-to-market, of we're started we we -- our We procure we really ago. our way that capability global run well. productivity invested our the to shared to services, generate services, now our the global about company, we and couple digitalizing transportation create will from and growth way them years business to factories a centers,

Now we the A&M demand our use in have can level generation service them at that across optimization, do we labor optimization. in we how and organization. general, much a we how maturity budget more company them

much better are ROI. We at understanding

the internationally. to business returns invest that we us give to investors responsible a the background, expect challenging years financial us. Again, programs levels good our the started is grow for makes that we delivering. see company as we Even the even of investing will best optionality our the of making That to in productivity, in we that -- the we're long-term long few transformation the challenged high So in positive. very term. in way long feel very investment line, and transformation using to to keep continue will year sustainability, in categories of we deliver are One us and deploying we this, EPS there's consumer in the feel we productivity we're right good term, like platforms with the sure long-term in are that the company, target. we're for multiple in next the on top year investing the we keep And will it deliver managing sense less confident we that cost a keep A&M, resources. always U.S. of with that a our that and the continue in keep at deliver about the able this end That the investing very

our the we'll ball coming long term think years. productivity, on program deliver So we're our on continue to best-in-class term whilst in short Thanks for the we to deploy multi-pronged not is that what the off taking investors. the I eyes

[Operator question with comes Kaumil Gajrawala Instructions] Our Jefferies. next from

deliver flexibility If forward EPS, could of if other putting with on single do revenue up that that indeed of of follow for the the to can you do stay you still growth organic X% does X% I the year? just or in the that kind than digit together, have sort range, low on all details,

said and same category, are very large we next keep don't of grow have productivity much our innovation year X% we health we'll at year, putting place deploying I we the X%. and investments term. a with it as that set that back the long the tools time, deliver we'll the systematically. we than think into At more our this We Kaumil, of have I for in and business that think brands will think earlier, our category,

of we're considering scenario our not So kind planning. that in

around global believe snacks on categories our Both partners we that relevance, dollar our category to brands, consumers on beverage of very growth the I we our where productivity, long-term to category. and to with for type will lot want a the health confidence world our do would the in long-term which I a categories But of long-term term. many in markets sizable keep long what with generate this our is growing our earlier, focused continue as both is can category, putting that's with what control, say categories, trillion growth of said healthy clearly in us focus. Long the growth our profitable the of our of we're of that and control for give us, winning both keep term, in consumers that plans be trends are them continue building we focusing

next Stanley. Dara Mohsenian Our Instructions] question from comes [Operator Morgan with

the you've of So in touched Frito-Lay. Ramon, on actions in you the prepared some earlier taken far so remarks,

tweaking step to is drive of in initial thrust forward? payoff your a seeing, us take question payback going more about really actions of there back And it that you're of and think heavier already Is taking of actions just give terms some front. the but you of to it going sort detail view pricing? a specifically, Give mean? forward. providing you you can Are do going value What that Just lean that a behind you're does investment greater dial about focus? place maybe us Is the in the Is additional sort on? mentioned. of those on consumers changing And can less down that promotional on sort more magnitude little to tangible those? of of you more how the

continue with that a will Dara, the way think, that. strategy thank you. we're and -- Listen, it's we I multi-pronged

more chips giving relevant. X drove value about we put of That chips we potato category household investments that the mostly this business, is behind feel the that and super So and summer, feel good good about growth We in gained core the return. penetration, Lay's on Lay's. potato points

to Now other that we're categories. apply to sequentially going

of gatherings. put winter We And behind it of packs make those more more It's those We're in a lot bonus -- bonus and those obviously, brands Tostitos. -- some value product -- the product gathering, investments very gatherings, a the normally Ruffles, belong occasions. football that season. the Tostitos more form brands and sense. will be and There's large giving of lot the in use and of XX% Doritos will season well packs fall a combination large to the to group belong the so in in are of these

We're in events. also investing brand

So big and Doritos around see brand will Tostitos you events NFL.

Us the Flavor You'll Do classic see Lay's playing some of event. A

brands will value have big brand of the events. a So and combination

continue. been At of the years, the that that time, will many we've evolution for the working is many, working we're portfolio. long-term on same something And

go. I business speed term is the think our the it's portfolio based that to at the on long evolving consumer the success wants of

This to is business. and to continue portfolio. very invest that permissible continue we'll we more on So legs growing put our to fast,

PopCorners, Now SunChips, have we we have Smartfood. Simply,

We of leg the very legal growing that work through another go to same And of you that Hopefully, the of have is we approval. permissible have portfolio. The -- portfolio that well Gamesa guys solutions the Siete. with United that We Hispanic announcement have States, We brands to brands. Sabritas, growing keep will multiple that saw see group like to with the consumers. in Santitas, multicultural. we population can will

underpenetrated. channels. We're scaling other U.S. -- beyond other there for We And is in we're have entering the Mexico. we're making channels them create trying up home, occasions where the from to We're lever in expand can them right that in in brands are away our new retail, we're brands we now those playing

that's building the in investments ball taking to going a So consistently more multi-pronged making off future. without we're on approach. We're the for the in portfolio quarters lean bit the first long-term the the probably that value

be few see back productivity those optionality next and see to earlier, was a So you will can making that refer making the us create us different lot I'll we saying we will place over the tactics I the as again, adjustments program ourselves months. flexibility. for we actions gives those options. But taking returns of with what And the the our of

comes Instructions] from Falorni next Citi. Filippo with [Operator Our question

the about ask to wanted I business. International

certain mentioned and you the Ramon, So weaker remarks, tensions geopolitical across in some markets. consumer prepared

had X convenience pieces business, about to you it and the impact maybe food talk more impact continues has quarter. can the of like So in any kind those at the side then quantify beverage And a markets business the of like that seems do the the in well. International deceleration versus looking negative been

the drivers are slowdown and Is or what it foods? drivers? So International, to there the in convenient in similar the snacks are U.S. other

Eastern are I'll that nicely. you There sense growing markets International. like growing see are those markets strength in a pace. there Southeast of a are Brazil of give at bit are Filippo. nicely. growing parts good We pockets India, see of you, a Thank We Europe Asia, in -- of

pockets there's markets are of deceleration. other a There bit we're of where growth. a So seeing

is China food that are gaining We're although feeling and we're we're growth. a to consumers where our a seeing from share. a in double-digit single-digit more constrained, So bit market business, seeing deceleration

bit other money stabilize. into also a of and elections with some dynamics in Mexico. Europe of economy. flows and seeing Hopefully, now seeing be social this has of around weather to there. parts noise the We're We the that related of Western deceleration challenge, think the will And we're a

But And a teams for and that yes, Middle don't Middle Now locally geopolitical a the the going the reality. business our is job we navigating and consumers to business we doing continue months. in East that's been to think -- that are trying And the great coming The in impacted change a different stay to by situation fact situation. have it's relevant East. big forward. drive I

beverage a the your yes, on than So is little growing bit beverages, globally. yes, faster business comment food business versus food the

with Our UBS. next Grom comes question [Operator Instructions] from Peter

for question, a a relatively quarter. implies a bit of wide full the organic year more Maybe just the range housekeeping still guidance but revenue fourth

on thoughts any within external an fall expect just have then from more would perspective. And on underlying embedded? challenged to assumptions the where comments that any you So range? things within Clearly, been that,

would show just Or were the here current environment would curious holds? be you of assuming to exit category improvement you kind So as some anticipate XXXX? if we trying

from QX. the don't or It's conditions I'd a really we Jamie. say that expect existed in huge up inflection down

Cowen. [Operator Moskow from question comes Instructions] Our Robert next TD with

to promote In in the questions. some have like Tostitos. for a Ramon, investing some plan was more. different or also that ways put market into investing in and areas, behind to didn't Because Frito-Lay. process you see was yet in invest I very you're we thoughtful areas. approach -- thought in strategic different the X you similar not? that for much Did Tostitos it I to thought Lay's.

been but progress Choices Can distribution I weak. less improve higher brands, then them more thought made And bit terms because Positive the what would regarding I be of behavior secondly, you've they us a they've and towards you turning of to where tend consumer in income, are little have skew the give to to think would that value-seeking they exposed around? you

Tostitos, questions. U.S. some and everything X Great in summer, has in happens around of investments all gatherings great. else the this Tostitos made the fall lot On but and watching season in TV the brand the that with That's tailgating relevance a we've

bit incremental around mentioned, as value behind brand bonus on brand investment doing sure more growth. And the value We more the investing for sequentially. additional additional we're putting I be So consumers we're Doritos, create investment, packs with also will and we're programs going with the same XX% investments sense consumer some and to brand a Doritos. it's and the Lay's. started will be other we of Tostitos. for hopefully so in And that investments, penetration

any moving And a improve. we'll and October, Doritos. brand to the responding. of of it we're Doritos responds we're sequentially to being is already that Now well the how activity, in brand very sort seeing month September,

of The part multipacks. was -- is pandemic, being bit, packs that other different returning to business by little patterns a And but of is and We're it's huge slowing business consumers with part driver that kind the business. the seeing down variety a the that of mobility impacted of affordability.

larger So some packs been impacted. the have of

offer to XX. XX and we count before XX Now more -- was it multipacks

count, very That's of gravitating purchase. giving XX X lower toward X that's month, the growing the plus growing Now our well. Parts are fast. units. also We're to packs plus consumers very bonus multipacks, units,

the positive I a business in the So be additional this think that months. all in coming impact value will have will

Now when core on permissible both permissible. more many, years, permissible, for our it comes working we've on making many to products now been

levels our of for brands a levels reduced, all our creating a as are, our also premium. are that's and of see of halo creating brands, not fat but you necessarily positive sodium, You that say, being portfolio

It's limited is covers penetration of still the around is I said, hopefully, our consumers. new really Siete. premium large in some family, as between PopCorners. those Positive XX% SunChips, already is of think range, the beyond to XX% the and most some democratizing is but Smartfoods. platforms, Simply Choices consumer. It And It's It to brands. it's the which I with addition what

everything of We're seeing So We're penetration investing medium consumers those. in or we seeing brands. positive affordability for high-income impacted even consumers. keep development medium-income is those And by increasing.

thoughtful continue behind trial, levels to see this advertising visibility be derailer. for today said generate So provide to these portfolio, trial. And And the with we be $X we invest They're money platforms they're returns matter business have, is build additional is We add can on at fact term. these long to intentional where and be see make that these meaningful. very needs already the we as with have grow that is it we and as billion. this we don't will I earlier, information the long-term large are precise the continue that much a -- something and that the will higher generate is in sure of brands a the how which, distribution, growing that all us much and and right digital insights more to to

Instructions] [Operator comes from Our Bank. Powers next Steve question with Deutsche

step incremental improvement Ramon, because for talked balance and little X% within then just incremental drove was gleaning Frito-Lay talked sales equation. should of a brand the expect building sharpening to between from on forward some investments. The that, what single digits. talk the changes year in we flip if about within how you of and you -- low that, maybe that clear back a to about much I specifically, not go that XXX% potentially I sort between I'm I'm the you appropriate and you more the organic was. And now growth both just as investments, could and markets in price the So bit points clarify, if businesses lot some in where that less those was domestic And by assumption. the see driven expected of versus that in guess we about I international to as an segment down negative than play wanted realize value pricing

it's Jamie. Steve,

revision then in point On revenue the X drag That's had a than probably it's digits, total and international. PepsiCo been we quarter. the a degree, to single recovery combination impacted consumer a the on X.X the U.S., frankly, of low in have anticipated, has the from geopolitics lesser to the growth the of slower

what where forward. investing think far soon As number it makes call to But we're levers the is too pricing demand. affordability sense. stimulate in in a to a it's going I complex. investing We're outlook as And on bit of goes, pricing

next Andrea [Operator JPMorgan. from with question Instructions] Our comes Teixeira

the should you mean, affordability of that see question been there we That just U.S. have to convenience Is an in -- we to ways therefore inflect would marketing places should international negotiating a experience ] in placing a in also XXX I reinvestments in margins -- see in In should I on need we follow-up. momentum understand is also to increased the If a [ for I we that LatAm, kind forward, margin specifically we like was volumes in in that of that. -- RGM LatAm, rooted for very a and the regions nice be saw pressured sizable But dialing Frito-Lay, in my Ramon, think with in operating step LatAm. And about and place looking level summer of going that like [indiscernible] for reinvestment just mentioned, something tough has where back know in Mexico? keeping next you Frito-Lay wanted check-in North to to lot retailers. And Europe? key a also in I prepare on while we the decline the remain and foods. appreciate saw I at I year, bit in America, comps. mean, point a of basis your

Listen, I your valid. international you, Andrea. question on very is Thank think

I been we the business. I execute think point always very how the at management in the And we -- ladder our and racks entry -- the price facing our and food manage and the the points sale in ladder and LatAm well we in consumer. in revenue good front and the packs price to of we've affordability think the that for our

So we'll to up. that continue dial

in we LatAm area. our and the those brands competitors versus the have sure that truth that have and we in that to invest in we strong consumer is continue carry to great we The -- brands brands, to make well, as to the

been you'll a for a time. It's balance capabilities. we've new that not between So executing both. see something But it's long a

We're we leverage have and perfecting that executional the versus we had the have precise might that tools more the use past. we broad-based as in that information execution and we more data have,

critical be the performance coming us we it's So but in business keep a years. driving the optimizing, will that I think in capability can it

it want Frito. one, of the But maybe, Now that PepsiCo. comes the Frito overall, the Jamie, to in put margin we you margin, overall cover when to context

want you if Jamie, maybe, talk margin. So about approaching to how we're

Yes.

on on Frito, way. in responsible, now a And doing is it level we're -- disciplined at little and focused our the consumer managing this consumer PepsiCo point. focus we're accelerates, portfolio the stimulating but Andrea, And a margin a with overall, and stimulating total margin. time, little right the emphasis Over the consumer healthy demand, more So we're a on business total right the demand. focused really think gets now, put can I margin. when the more on But we for managing at

good year we're this expanding how Frito, the I a invest of way about way should is And think the able near to PepsiCo example and And Yes. will business in substantially. we whilst that's the meaningfully think in run you margin the future.

[Operator Instructions] Our next question with comes from Wells Chris Fargo. Carey

for just And other a But are or question, ask structural direction to or pricing on of Siete more level strategic the value of in you are if portfolio entirely not. I this I you that about any the equations? to is of questioning seeing traction this wanted acquisition away from secular of Said a see the may you this Or is Frito-Lay, was the way, seeing question Andrea over another slowdown consumption is see purely wonder nod you're higher you're your into how line follow-up assessment investments the a just getting business habits, cyclical? higher-level outlined travel feel then that if the begin make moving the is approaching. you that Ramon, to had time. business? sort we're which investments that that to wonder beginning and as I

company total And if I of one on margins. could about just questioning line follow-up the

standpoint, divisions be pressure initiatives? Frito productivity going this feel under your any there where profit better Clearly, about quarter from productivity was to a you programs. despite Just expanding are you're

productivity are good? are offsets So and is your And just visibility on programs, international Frito. the investments the cost coming just for visibility an so the quite there PBNA expansion that anyway, in on

those. of both entertaining for thanks So

Yes. Great questions, both.

then margins, back food get Let the the business. long-term to I'll me the of with start growth and

margins, the that we of beverage the to goals On that in declared one have of margins improving very is business keep the our strategic we clearly the U.S.

grew last of the see Great on portfolio intentions efficiency and performance our the we're PBNA. sight segments. margin grow couple will by improving the think the in And Ram year good margins high-margin years towards business, meaningfully, And line the business mid-teens year, and a we managing of to track. margin of the of in this team I meaningfully. a it in

So but and that that improvement internationally, is the efforts you've our That's continue. also all productivity same by international. margin and teams efficiency across by scale, our seen driven in will key working. The by markets,

opportunities our margins, more for PepsiCo put the future the we continue X providing And a should to and deliver expand and focus in to of company. consumers. that value we balanced will So those able we expansion margin company our have the approach the are as reinvesting be meaningful of margins to to

feel So those X levers, we that. good about

think international I its As years. to the about PBNA X and responsible to expand how continues contributors in PepsiCo coming a way as the in margins

occasion snacks, our different the into R&D in way feel trends we and the many with -- in the whatever these have the becoming in and these food markets offerings the than they're -- transformation eating the used habits improved, big day meal are Gen needs a the mini the evolving if portfolio their the moving permissible category. visible for permissibility of years developed providing are a of so long think going is to in any for has been about we And portions of that's of us clearly, providing growth think X be or our about our good comes changing in are smaller world more big your on towards small consumers world. age. calories looking more meals many, for it long in in use mini more and market. a And meals. We the it in different see when much question a a some with going term. One snacks trends very markets, our the is Tostitos in we more is, business, either developing you occasion popular. these see, of Now banana that other to don't fulfill And yes, concept the is and with consumers of Those options equivalent has But more the to for eating in for we or their see meals, are category. with we consumer portfolio penetration the to or parts we meals or changing treat concept meal, of Z, unstructured especially more And on Sabra strategic or that of parts of portfolio, kind way about I the the working of and on but have it social opportunity a levers gathering hummus the better they're -- the like improved think we frequency. big the term. The the some we using also are throughout used can you to have replacing if been

the of So that the our able moving more in because consumers we belong We're into that those leaning innovation to brands for be and satisfy there. with occasions positive space. see be there spaces lot going in are brands we'll that category. trends We're a to in our

direction. that and the we're and wellness, that we've and and ready, meals, in the we're been direction. Yes, moving unstructured moving health yes, So portfolio portfolio meals, in mini

both those long tool and portfolio to will sustainable occasions a enter other permissible right. that there many play meals way in is in into in acquisition assessment us The of But of is spaces. can the Siete capture another Your that give both hopefully term. are brands

Robert question Ottenstein Our next with ISI. Instructions] [Operator Evercore comes from

you if whether so that, system guys been path Gatorade the And wondering work to have give great is in have related it's could discuss if through dependent and then it you was than card been the of the DSD perhaps a doing on I can the you was last off, part perhaps PBNA. you And general in of in a reengineer report transition? all margins mid-teen years. the us to First that past, that less that system volume in couple able for the years, to your few the

Great question.

would good better that and we that executed customers, a feel learned we this Gatorade, year. our about Clearly, agree. on they have to last way think Gatorade. So still sure would you if improve, and we've year, I'm we I ask

the will up, market a better share we've shares opportunities go. get have of as improved we sport levels of The seen service we category of performance. our is in Gatorade still but output So think and that sustainable meaningfully, going improvement,

on that one So side.

brand also execution growing transformation. of that that we're digit, Gatorade. Along complementary the us And some spaces for consumers Propel is one and for performing is with fulfilling is in place. Propel Propel, well is beautifully great Gatorade, this the part by double is benefiting putting as it's to

and other about that system of It's the portfolio. lower DSD of -- that. some the good states our we had soft So somehow we parts economics where with scale improving drinks in feel our

that's move good So a overall.

great in efficient about profitable more delivery clearly that We that We're regards more growth. of a about PBNA can in And the PBNA, can feel said other can not the -- why feel but be we trajectory the feel our we demand. in many business. about parts business. procure. sources right? an only, good good We I that's journey good earlier, PepsiCo productivity be the more efficient how And areas how efficient to how will seeing that of we margin as this also well. business forward. get mid-teens operating many this invest in be in business our for to be of North great platform going We models for And We on be opportunity. is our beverage we in in in transportation, obviously, can both With go-to-market and be lot America will will variables, warehousing, of our we're a optimizing -- productivity

with from Paribas. comes Kevin BNP question last Our Grundy

with sticking course, in of the U.S., North on surprisingly the pivot salty in broadened lost snacks we portfolio like you, on American not update strategy drink can maybe here energy get remained the where you category recent weak. years, just Ramon, category, and the So Beverages, an

please. a So of questions, couple

in maybe One, your then two, regain some the updated seen the just category sharp system? slowdown to the energy thoughts perhaps recovery share for on comment Pepsi just what drink with its CELSIUS' there that and on market we've brand And loss momentum ability that like? may look the and

Listen, think will the consumers the the Thank you, continue Kevin. U.S. in world and state energy in I foreseeable everywhere future. need the for by

needs the everybody of an boost day. think bit I energy a throughout

coffee, going satisfy us whether manufacturers to needs, tea, owners through so to state be And remain. brand through need of or drink. to I And through energy it's kind drinks, like those that soft it's through up think will

for from to So I think innovation will be investments. opportunity that opportunity opportunity and brand an remains and that continue

term the -- stores the And category play convenience in in there category impacted going think and has been the I down. of So It's down. how energy the stores. convenience on been short segments different clearly out, has traffic traffic U.S. by gone in the

that better. itself consumers and cycle future the it's feel of we're in, will the once economic that reverse I in part think

long So I energy of wouldn't the the overplay category. term

same said I'll regards past, like I With to the say partnership. we as the the in CELSIUS,

part of on are We partnership. delivering our the

Our up. distribution points going are

Our keep service going levels up.

partnership partnership. Yes. optimistic standards, the with So our remain and high we're of discipline part on executing and the we

very with thank and hope that stay thank So you much, around. for look Thank your and questions the for the investment. all seeing you We dialogue. you've with that the and PepsiCo you And you obviously, healthy confidence safe forward everybody, to placed you.

conclude Ladies presentation. and gentlemen, this does today's

day. and wonderful may disconnect, You now have a