PepsiCo CEO Nooyi Expects 'Age Of Thrift' To Continue
By Anjali Cordeiro, Of DOW JONES NEWSWIRES
NEW YORK -(Dow Jones)- PepsiCo Inc.'s (PEP) research shows the "age of thrift"
in consumer spending will continue and the company is tailoring more products
and marketing around these frugal consumers, Chief Executive Indra Nooyi said
Thursday.
Speaking to investors on a conference call, Nooyi said the company will invest
more next year on research and development and in emerging markets. PepsiCo
researchers will work on new low-price products, as well as on differentiated
products that appeal to consumers' interest in healthy options, she said.
"Clearly, one part of the effort has to be on launching lower priced options,"
she said.
Makers of household staples and daily goods have in recent years focused on
getting consumers to trade up to pricier offerings. That trend has shifted
during the recession. Consumer giant Procter & Gamble Co. (PG), for instance, is
cutting prices and trying out cheaper versions of key brands.
PepsiCo continues to expect attractive growth in emerging Asia. The company is
"bullish" on China, Nooyi said. Higher sales of Frito-Lay snacks and growth in
developing markets propelled PepsiCo's third-quarter profit higher, but the
company said beverage sales in North America stayed weak as consumers continued
to tighten their belts.
On Thursday's call, Nooyi said the company is evaluating small "tuck-in" deals
to help growth in parts of its business.
-By Anjali Cordeiro, Dow Jones Newswires; 212-416-2200; anjali.cordeiro@
dowjones.com
(END) Dow Jones Newswires
10-08-090920ET
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