Nearly Half of PepsiCo's Revenue Now Comes From “guilt-free” Products

PepsiCo Inc., the maker of Mountain Dew and Cheetos, is under more pressure to shape up.The food giant now generates 45 percent of its revenue from so-called guilt-free products, which include lower-calorie drinks and items with grains, fruits and vegetables. But with some overseas economies slowing -- and currency fluctuations weighing on international sales -- investors are looking to the company to turn its healthier portfolio into bigger growth.Shares of PepsiCo fell as much as 2 percent to $104.77 on Wednesday after the company delivered a disappointing forecast, saying that earnings would come in at $5.09 a share this year. Analyst had predicted $5.15. Chief Executive Officer Indra Nooyi also warned of "continued macroeconomic challenges" ahead.With customers attempting to eat healthier -- especially in North America -- the company is scrambling to release new and revamped products. That effort has helped PepsiCo cope with an industrywide slump in sugary beverages. Per capita soda consumption fell to a three-decade low in 2015, according to Beverage Digest, a trade publication. The shift has put more emphasis on products like Sabra hummus and Naked juices.  Continue reading...

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