PepsiCo revealed a revenue decrease in its Q4 earnings.
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00:00Pepsi is hoping that by going smaller with some of its snack and drink offerings, it will see bigger sales.
00:06The company is looking for a recovery after fourth-quarter sales dropped to $27.78 billion, which missed Wall Street estimates.
00:15The parent company of Frito-Lay, Doritos, Quaker Oats, Pepsi and Mountain Dew is battling consumer concerns on two fronts.
00:23First of all, shoppers are still upset over the price hikes over the past few years and are looking for bargains when they shop.
00:29That's especially true in North America, where volumes declined as average prices rose 3 percent last quarter.
00:35With that in mind, Pepsi is experimenting with more value packs, which offer smaller-sized drinks or smaller-sized snacks, which are bundled at a value price.
00:46But the other change prompting PepsiCo to offer new portion sizes has to do with the rise of GLP-1 weight loss drugs.
00:53PepsiCo CEO Ramon LaGuardia told investors he's noticed more conversations on social media about food, snacking and health and wellness.
01:02Quote,
01:04Probably the number one solution for consumers to stay in our category is small portions of our favorites,
01:10ideally improved favorites with lower sodium and lower fattened artificial ingredients.
01:15So, portion control of our favorites is a big strategy.
01:20But weight loss drugs aren't just impacting the size of the snacks and drinks.
01:25Pepsi is focusing on snacks that are packed with healthier alternatives like proteins and whole grains.
01:32It's looking to leverage brands like Sunchips and products within the Quaker Oats family to meet that trend.
01:39Turning to Tuesday's stock market action, tech stocks traded higher on better-than-expected quarterly results and an optimistic AI spending outlook from Palantir.
01:48Meanwhile, shares of Estee Lauder slumped after the beauty company said it was cutting 7,000 jobs to offset a drop in sales.
01:56That'll do it for your daily briefing.
01:58From New York City, I'm Conway Giddens with The Street.
02:02Thanks for watching.