Growth from the beverage and convenience food business from the India market contributed in PepsiCo’s revenue upswing in the international market in the second quarter of 2026, the American multinational said.
In its quarter ending June 13, 2026, PepsiCo reported both global convenient foods and global beverages delivering strong organic volume and net revenue growth.
Its International Beverage Franchise (IBF) business, which accounts for over 60 per cent of its global beverage volumes, posted a 5 per cent increase in organic volumes during the second quarter.
Meanwhile, its international convenient foods business, representing around 70 per cent of global convenient foods volumes, recorded a 4 per cent rise in organic volumes.
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.
IBF includes PepsiCo’s international franchise beverage businesses, as well as its SodaStream business. Its net revenue increased 11 per cent in 12 weeks and 10 per cent in 24 weeks (year to date).
During its second quarter of the current financial year, Pepsico’s net revenue increased 6.4 per cent to USD 24.18 billion. Its operating profit was at USD 4.023 billion.
India also contributed to the growth of convenient food as in the Asia Pacific Foods business net revenue increased 12 per cent.
Asia Pacific Foods consists of PepsiCo’s convenient food businesses in the Asia Pacific, which includes China, Australia, and New Zealand, as well as India.
PepsiCo said year-to-date it has either maintained or expanded its market share in the savory snacks category across key markets, including China, Brazil, India, Egypt, Saudi Arabia, Australia, the Netherlands, Thailand, France, and Pakistan.
“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 said it is revamping the Lay’s brand across several markets with updated packaging, marketing campaigns and messaging that highlight simple, high-quality ingredients and the absence of artificial flavours and colours.
The company is also adapting the strategy to local markets, including India, where its Kurkure brand is being refreshed with “new visuals and a no-artificial-flavours-or-colours positioning”, said PepsiCo in its management remarks.
PepsiCo India had earlier this month committed to invest Rs 5,700 crore between 2025-2030. This includes the addition of new foods manufacturing facilities in Assam and Tamil Nadu, alongside the recent commissioning of its state-of-the-art Rs 1,266 crore flavour manufacturing plant in Ujjain.
“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.
