How Big Food Companies Are Targeting Value Amid Rising Pressure on Low-Income Consumers

Big food companies like Coca-Cola, PepsiCo, and Domino’s Pizza recently shared their earnings, and one message stood out: they’re all focusing on providing value to customers. Prices have gone up, and many consumers are feeling the squeeze, especially those with lower incomes.

Coca-Cola’s CFO, John Murphy, noted the resilience of the U.S. economy but acknowledged that some people are struggling. They’re making an effort to offer more affordable options to keep those customers loyal. Beverage sales are slumping slightly, with Coca-Cola down 1% and PepsiCo down 2% in North America. To combat this, PepsiCo is emphasizing “better entry points” for customers, trying to ensure they stay within their brand.

Interestingly, both companies have reported growth in their zero-sugar products. Coca-Cola has seen impressive sales of Coke Zero and Diet Coke, often enjoying double-digit growth in these segments. Their strategy seems to be paying off, as they expand their product lines with options like a new soda made with real cane sugar, prompted by social media buzz.

On the other hand, PepsiCo’s CEO, Ramon Laguarta, points to the versatility of their no-sugar drinks, which include popular brands like Gatorade, as a key growth strategy. They’re also investing in protein-based products, which are trending among health-conscious consumers.

At Domino’s, the focus on value has driven gains across different income levels. CEO Russell Weiner highlighted that no matter the food category—pizza, burgers, or fast food—customers are all looking for good deals. By emphasizing value, Domino’s aims to grow its customer base even in a competitive market.

In summary, these brands are adapting to changing consumer needs by prioritizing value and affordability. As people face higher living costs, their strategies resonate more than ever.

For more in-depth coverage on these corporate earnings, you can check out Yahoo Finance.



Source link

Domino's Pizza, Coca-Cola, PepsiCo, food companies, quarterly earnings, consumers, consecutive quarter