Trusted Soda Company Makes Troubling Announcement
A trusted soda company is warning about the troubling impact of tariffs on its bottom line.
According to The Associated Press, PepsiCo "lowered its full-year earnings expectations" because of concern over tariffs and less consumer spending.
The company also makes Frito-Lay snack items. It expects "its core earnings per share to be even with last year," AP reported, which is less than the previously expected "mid-single-digit percentage growth."
According to AP, the culprit is a 25% tariff on "imported aluminum," which is affecting PepsiCo and other soda companies.
However, the soda company is hoping to "adjust sourcing to mitigate higher costs," Reuters reported.
PepsiCo gets its soda concentrate from Ireland, according to The Wall Street Journal.
According to CNBC, part of the issue is that shoppers are curtailing their spending, especially on snack items.
Pepsi described consumers as "subdued," CNBC reported.
'As we look ahead, we expect more volatility and uncertainty, particularly related to global trade developments, which we expect will increase our supply chain costs,' Pepsi CEO Ramon Laguarta said in an April 24 statement, according to CNBC. 'At the same time, consumer conditions in many
'Consumers have remained value‐conscious across brands and channels as the cumulative impacts of inflationary pressures have strained budgets and altered food shopping patterns,' Laguarta and CFO Jamie Caulfield said in the statement, according to CNBC.
The network reported that PepsiCo is looking to expand some of its product lines, such as Simply, Sabra and Siete. It is also getting rid of "artificial colors" in Lay's and Tostito's products, CNBC reported.Sign in to access your portfolio
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