Purchase, N.Y. • PepsiCo Inc. raised its forecast slightly for the year on Wednesday as it continued to slash costs while selling more of its snacks and drinks.
The company, which owns Frito-Lay, Gatorade and Quaker, said global volume for its snacks and drinks each rose 1 percent in the second quarter. While the gains were relatively modest, PepsiCo has been boosting its financial results with a cost-cutting plan expected to generate $1 billion in savings this year.
In its Frito-Lay North America division, PepsiCo said revenue was up 2 percent, as lower prices helped lift sales volume. Although the performance was muted, Chief Financial Officer Hugh Johnston noted in a phone interview that the unit is expected to benefit in the current quarter from the Lay's "Do Us a Flavor" contest, which lets customers suggest new flavors. The finalists were recently announced — Cappuccino, Mango Salsa, Wasabi Ginger and Bacon Mac & Cheese.