India Fuels PepsiCo's Global Q2 Growth Across Beverage and Food Businesses

India emerged as a key contributor to PepsiCo's international growth during the second quarter of 2026, with robust demand for both beverages and convenient foods supporting the company's revenue performance across global markets.

For the quarter ended June 13, 2026, the American multinational reported strong organic volume and net revenue growth across its global beverages and convenient foods businesses, reflecting resilient consumer demand in several international markets, including India.

PepsiCo's International Beverage Franchise (IBF) business, which accounts for more than 60 per cent of its global beverage volumes, registered 5 per cent organic volume growth during the quarter.

Similarly, the company's international convenient foods business, representing nearly 70 per cent of global convenient foods volumes, reported 4 per cent organic volume growth, supported by continued momentum across key markets.

The company attributed part of this international performance to sustained growth in India, where its beverage and snack businesses continued to deliver strong results during the quarter. In Q2, PepsiCo's IB franchise "unit volume grew 5 per cent, primarily reflecting broad-based increases, led by India, partially offset by a decline in Mexico", it said.

PepsiCo's International Beverage Franchise (IBF) business, which comprises its international franchise beverage operations along with the SodaStream business, continued to deliver strong growth during the quarter. The segment recorded an 11 per cent increase in net revenue for the 12-week period and 10 per cent growth year-to-date over the 24-week period.

For the second quarter ended June 13, 2026, PepsiCo reported a 6.4 per cent rise in net revenue to US$24.18 billion, while operating profit stood at US$4.02 billion. India also remained a key growth driver for the company's convenient foods business. PepsiCo's Asia Pacific Foods segment which includes its convenient foods operations in India, China, Australia and New Zealand reported a 12 percent increase in net revenue during the quarter.

The company added that it has either maintained or expanded its market share in the savoury snacks category across several key markets year-to-date, including India, China, Brazil, Egypt, Saudi Arabia, Australia, the Netherlands, Thailand, France and Pakistan, reflecting sustained consumer demand across its international portfolio.

"For beverages, we held or gained share in the UK, Philippines, Germany, Argentina, Australia, Spain, India, Thailand, Guatemala, Pakistan, Egypt, and Vietnam," it said.

PepsiCo is strengthening its snack portfolio through a global brand refresh, with India among the key markets identified for product and marketing upgrades.

The company said it is revamping its Lay's brand across multiple markets by introducing refreshed packaging, new marketing campaigns and messaging that emphasises simple, high-quality ingredients and the absence of artificial flavours and colours.

As part of its localised strategy, PepsiCo is also repositioning its Kurkure brand in India with updated visual identity and a "no artificial flavours or colours" proposition, according to the company's management commentary.

Earlier this month, PepsiCo India announced plans to invest ₹5,700 crore between 2025 and 2030 to expand its manufacturing footprint in the country. The investment includes new foods manufacturing facilities in Assam and Tamil Nadu, in addition to the recently commissioned ₹1,266 crore flavour manufacturing plant in Ujjain, aimed at strengthening the company's production and supply chain capabilities in India.

"Net revenue increased 6.4 per cent due to 2.4 per cent organic revenue growth, a 2.2-percentage point benefit from foreign exchange translation and a 1.8-percentage-point net benefit from acquisitions and divestitures," it said.

Over the 2026 outlook, PepsiCo said it continues to expect its organic revenue to increase between 2 and 4 per cent.

"Our second quarter results featured strong organic volume and net revenue growth for the global convenient foods and global beverages businesses.

"Year-to-date, PepsiCo's global organic volume has increased at the highest rate since 2022, aided by the strength of the international business and the continued evolution of the portfolio to offer more choices," its Chairman and CEO, Ramon Laguarta said.