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PepsiCo CEO Ramon Laguarta: We're working on making snacks more affordable and nutritional
CNBC Television • 3:06 minutes • Published 2025-07-17 • YouTube
📝 Transcript (96 entries):
some stabilization in the trends. The stock had been underperforming for the last better part of two years going into these numbers. On concern in part about the slowdown in the company's snacking portfolio. I did speak with CEO Ramon Laguarta about that and how it balances out with beverages and how he's thinking about all of it this morning.
Listen. >> Snacking is a great opportunity for growth. I think the on the go lifestyle for consumers will continue in the US and in many parts of the world. Urbanization is a factor.
You know, both couple are working. So I think this is this is a nonstop. Now a couple of things impacted our our growth after many years of tremendous growth after during Covid and after Covid, we, you know, inflation really took a hit on on consumption. And what we've been working on is on recovering the affordability of the category and making sure that families that are more stretched in their finances can continue to participate in what is, at the end, a discretionary part of their diets. You know, nobody needs to buy snacks to survive.
So it is discretionary. We need to make it, on the one hand, affordable, on the other hand, more permissible because clearly consumers are more aware of nutritional needs and what is in the product. So, you know, we're been working on both affordability and you know, the better, better profile of the products. And then working on on, you know, making the products available everywhere away from home and retail. And that will continue to create growth for us. So I don't I'm not worried at all actually. I'm very excited about where the snacking category is going, the same as the beverage category.
So that is a big idea for us to participate in both food and beverages. And we'll continue to do that because there's a lot of synergies between the two categories.
>> How much of an impact do the tariffs have on you? >> We're mainly I mean, if you think about the US, we're mainly a US for US company. Right. So we have about 120,000 employees.
We make move and sell in the US. We have about 60 factories and we have 500 depots. So we are very heavy infrastructure, high labor intensive company in the US. So most of the value is created in the US. However, there's ingredients that we bring from, from, from, you know, outside markets, things that either cannot be produced in the US or otherwise now. So we're vigilant on what happens with tariffs. We've been working on both cost reduction. We've been working on changing some of the sourcing and optimizing our revenue management to mitigate for the impact of tariffs. It is a factor. It's not a massive factor, but it is a factor. But we're a very US company. But there are some flows of materials that come from from outside. And we need to be prepared to mitigate those effo