Low-income consumers remain “pressure” as large food companies rely on value messages
Large food companies like coca cola (that),, PepsiCo (Pep), and Domino’s pizza (DPZ) This week, it reported quarterly revenue and offered a similar leaps in how it is sending messages to customers who are feeling in a pinch from the higher prices. It’s all about value.
“The overall resilience in the US remains impressive, but … there is a low-income segment that is under pressure,” Coca-Cola CFO John Murphy told Yahoo Finance Tuesday.
“Part of what we’re keeping so focused is offering more affordable options, and we’ll maintain a consumer-based section.”
Soda Giants’ Coca-Cola and PepsiCo drink volumes fell again this quarter, down 1% and 2% respectively.
“We are trying to invest in value carefully, make sure our consumers stay with our brand, improving entry points and better value every day.
James Quincey, CEO of Coca-Cola, told investors that the company’s ads were “focused value and affordability initiatives” which gave positive results in the quarter.
Both beverage giants flagged their zero sugar portfolio as a source of growth in the recent quarter.
Coca-Cola reported fourth consecutive quarter of double-digit volume growth for North American Cola Zero and Diet Cola. Cola will also add soda made with real sugar cane sugar to its US portfolio this fall after President Trump I took him to social media The company announces that it will use “real cane sugar” in its American drinks.
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Laguarta has summoned the “functionality” of Pepsico’s sugar-free portfolio, which includes hydration and energy. The company owns brands Gatorade and Rockstar, which play in these categories. Protein Initiative With food portfolio as a key strategy for growth.
At Domino’s, CEO Russell Weiner said consumers seeking value across categories have urged the pizza giant to attack. In the most recent quarter, the company earned share profits across all revenue cohorts.
“The important thing to understand now is whether it’s a pizza or a burger or QSR in general, there’s pressure because consumers are looking for value,” Weiner said in a call with investors on Monday.
“The big difference with Dominoes is that when we provide value, we are attacking. We are doing that because we think we can grow.”