Global food & beverages major PepsiCo on Thursday said international sales of its convenient foods business (snacks) logged a 2.5% organic revenue growth in the third quarter of 2025, driven by markets including India. But the beverage business remains a clear challenge as rains as well as increased competition have led to “volume declines” in the domestic market. PepsiCo follows a January-December accounting year. PepsiCo sells brands such as Kurkure, Lays, and Quaker Oats in foods, and Pepsi, Mountain Dew and Slice in beverages.
“Growth in India has been slow due to weather and competition in the country’s beverage sector. It will impact growth for a couple of quarters,” Ramon Laguarta, chairman and chief executive officer, PepsiCo, told analysts on Thursday following announcement of its results.
In the quarter ended September 6, PepsiCo said unit volume declined 1% in its international beverage business, reflecting declines in India and Mexico, partially offset by growth in the Middle East.
This is the second consecutive quarter where rains have hurt beverage makers in India. While the June quarter was marred by unseasonal rains, the September quarter has seen an extended period of rainfall across the country, hurting consumption.
In India, the pressure is added because Reliance Consumer has launched affordable beverage products across carbonated to non-carbonated, forcing players such as PepsiCo and Coca-Cola to tweak pricing and increase volumes to counter the impact.
Laguarta said that growth was coming back (in beverages) over the last few weeks (of September) in mid single-digits. India has also rationalised its GST rates on food and beverages, which is expected to spur consumption, say experts.
PepsiCo, he said, was also prioritising price-pack capabilities to offer consumers more value, convenience, and portion control. To aid growth, PepsiCo India in August, for instance, increased the grammage of its Rs 40 priced PET bottle to 740 ml from 600 ml earlier.