PepsiCo Registers Global Growth Surge as India Drives International Beverage and Food Business in Q2

PepsiCo Registers Global Growth Surge as India Drives International Beverage and Food Business in Q2​

Financial Performance Highlights for PepsiCo​

American multinational PepsiCo reported robust growth across both its global beverages and convenient foods divisions during the second quarter ending June 13, 2026. The company noted strong organic volume and net revenue increases in these international segments. PepsiCo’s International Beverage Franchise (IBF) business, which constitutes over 60 per cent of its worldwide beverage volumes, recorded a 5 per cent increase in organic volumes for the quarter.

The international convenient foods business, representing approximately 70 per cent of global convenient foods volumes, showed a 4 per cent rise in organic volumes. PepsiCo stated that the growth in its IB franchise "unit volume" by 5 per cent was driven by broad-based increases globally, with India being a key contributor. This performance partially offset a decline observed in Mexico.

For the period under review, PepsiCo’s net revenue increased 11 per cent over 12 weeks and saw a 10 per cent increase in 24 weeks (year to date). During the second quarter of the current financial year, the company reported its net revenue at USD 24.18 billion. Its operating profit stood at USD 4.023 billion.

India's Role in Global Growth Story​

India was a significant contributor to PepsiCo’s convenient food segment growth. The Asia Pacific Foods business, which includes China, Australia, and New Zealand, also saw its net revenue rise by 12 per cent. This demonstrates the expanding market strength derived from operations across various Asian regions.

PepsiCo highlighted that it has either maintained or expanded its market share in the savory snacks category globally. Key markets where this is true include China, Brazil, India, Egypt, Saudi Arabia, Australia, the Netherlands, Thailand, France, and Pakistan. Furthermore, for beverages, the company retained or gained share in 12 key regions: the UK, Philippines, Germany, Argentina, Australia, Spain, India, Thailand, Guatemala, Pakistan, Egypt, and Vietnam.

Brand Revitalization and Market Strategy​

PepsiCo is actively revamping its Lay's brand across multiple markets. These updates include new packaging designs, enhanced marketing campaigns, and messaging. The new communications specifically highlight simple, high-quality ingredients and the absence of artificial flavours and colours in the products.

The company is also adapting its strategies to resonate with local consumers. In India, for instance, the Kurkure brand is being refreshed with a "new visuals and a no-artificial-flavours-or-colours positioning." This commitment underlines PepsiCo's focus on localized market appeal alongside global standards.

Future Outlook and Investment Commitment​

PepsiCo maintains a positive outlook for the coming fiscal year, projecting its organic revenue to increase between 2 and 4 per cent over the 2026 period. The Chairman and CEO, Ramon Laguarta, stated that the second quarter results featured strong growth in both global convenient foods and beverages.

Highlighting commitment to the Indian market, PepsiCo India had previously committed an investment of Rs 5,700 crore between 2025-2030. This substantial commitment includes establishing new food manufacturing facilities in Assam and Tamil Nadu. The company also recently commissioned a state-of-the-art flavour manufacturing plant in Ujjain with an investment of Rs 1,266 crore.

Net revenue increased by 6.4 per cent due to organic revenue growth of 2.4 per cent, supplemented by a 2.2-percentage point benefit from foreign exchange translation and a 1.8-percentage-point net benefit from acquisitions and divestitures.