PepsiCo Owns Dozens of Hit Beverage Franchises. But Most of Its Sales and Profit Come From Somewhere You Might Not Expect.
The Pepsi franchise is its biggest single brand, so it's no surprise that (NASDAQ: PEP) would be named for that blockbuster product. Coca-Cola (NYSE: KO) took the same path, after all, even though soda fans in the U.S. are more likely to order a Coke when they're thirsty.
That's about where the easy comparisons end between these two consumer-staples giants. PepsiCo sells dozens of beverage franchises besides Pepsi, including Gatorade, 7 Up, Mountain Dew, and Aquafina. Yet unlike Coke, it doesn't get all its revenue from drink sales. Pepsi doesn't even count most of its sales or earnings from its beverage segment. Foods and snacks are the real profit driver for this business.
Pepsi booked over $86 billion of revenue in fiscal 2022, up from $80 billion a year earlier. Just 42% of that sales figure was powered by drink sales, though, with the rest coming from its sprawling food business. That segment is split into two main categories: snacks and convenient food.
Source Fool.com