PepsiCo expanding Rockstar’s reach – InfowayTechnologies

PURCHASE, NY. — PepsiCo, Inc. expects to expand the Rockstar brand both in the United States and other global regions.

“Rockstar has been growing with the category,” said Ramon Laguarta, chief executive officer, in a Feb. 9 call to discuss fiscal-year earnings. “More or less, there are some parts of the country where it’s well distributed and well preferred. Other parts of the country, we’re trying to get consumer penetration and consumer adoption.”

The brand is increasing penetration among Hispanic consumers, he added.

“The other thing we’re doing with Rockstar, which we don’t talk a lot but it’s an important part of our growth, is we’re launching Rockstar internationally in many markets around the world, from Asia to Europe to parts of Latin America,” Laguarta said.

PepsiCo on Feb. 9 gave results for the fiscal year ended Dec. 30, 2023. Net income increased 1.8% to $9.07 billion, equal to $6.56 per share on the common stock, up from $8.91 billion, or $6.42 per share, in the previous fiscal year. Net revenue increased 6% to $91.47 billion from $86.39 billion. Organic revenue increased 10%.

Within PepsiCo Beverages North America, operating profit decreased 52% to $2.25 billion, primarily reflecting an unfavorable impact of the prior-year gain of $3 billion associated with the sale of certain brands and 2023 impairment charges of $321 million.

PepsiCo has plans for other beverage brands as well.

“We’re using the Super Bowl as a platform this weekend (Feb. 10-11) to launch Baja Blast,” Laguarta said. “We continue to build a position in lemon-lime with Starry. Starry, it’s been a good first year. I think we’re over indexing with Gen Z. We see the brand getting some good repeat.”

The Gatorade brand is evolving.

“We’re moving from historically a liquid for high-performing athletes to an ecosystem of solutions in hydration and fuel for every type of active person, and we’re seeing a lot of traction,” Laguarta said.

Within PepsiCo’s Frito-Lay North America business, operating profit in the fiscal year increased 10% to $6.78 billion, primarily reflecting net pricing, productivity savings and a favorable impact of 2 percentage points from prior-year impairment charges.

Within Quaker Foods North America, operating profit declined 19% to $492 million, reflecting a negative impact of 22 percentage points from product returns and charges associated with the Quaker recall; certain operating cost increases; a decrease in organic volume; an impact of 9 percentage points from higher commodity costs, higher advertising and marketing expects; and an unfavorable impact of 2 percentage points from a 53rd week in 2022.

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