#Pepsico #youtube #stockmarket
Recession-resilient stocks might be the talk of the town amid the drumbeat of an economic downturn; but for one CFO, the answer might be in the snacks. “One of the reasons defensive stocks truly do well in these types of environments is because consumers still want to have these small, simple, affordable treats and luxuries in their lives”, says PepsiCo CFO Hugh Johnston. He told Yahoo Finance Live he’s “not that surprised” consumers aren’t trading down on more products.PepsiCo (PEP) reported first quarter earnings before the bell, showing net sales climbed 10.2%, despite overall prices rising 16%. Competitor Coca-Cola (KO) also saw strong demand for its product, fueled by its own price hikes. “You may not be able to go out and get a new car. You may not be able to go out and get a really fancy piece of technology, but you can afford a bag of Doritos or you can afford a Gatorade Zero after you work out,” he explains. You can watch Julie Hyman, Brad Smith and Brian Sozzi’s full interview with Hugh Johnston here.
Key Video Moments:
00:00:16 – Johnston “not that surprised” about consumers
00:00:38 – Consumers can afford a bag of Doritos
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PepsiCo’s Chief Financial Officer, Hugh Johnston, recently discussed the issue of inflation during an interview with CNBC. Despite concerns about rising prices, Johnston noted that the company has been able to maintain its pricing strategy and keep products affordable for consumers.

Johnston acknowledged that inflation has been a challenge for many businesses, but he also noted that PepsiCo has been able to offset some of the impact through its efficient supply chain and the use of technology. He also highlighted the company’s commitment to innovation and contrasted it with a more traditional approach taken by some competitors.

One example of innovation that Johnston cited was the use of data analytics to help the company understand consumer behavior and preferences. By leveraging this information, PepsiCo has been able to target certain segments of the market more effectively and design products that meet the specific needs of these customers.

Another example of innovation that Johnston mentioned was the use of automation in the company’s manufacturing facilities. By automating certain processes, PepsiCo has been able to increase efficiency and productivity while also reducing waste and lowering costs.

Despite these challenges, Johnston pointed out that people are still buying products like Doritos, which is one of PepsiCo’s most popular products. This suggests that consumers are willing to pay a reasonable price for quality products. As long as PepsiCo continues to focus on innovation and efficiency, it should be able to maintain its competitive position in the market.

Overall, Johnston’s comments on inflation highlight the importance of innovation and efficiency in today’s business environment. As businesses grapple with rising costs, those that are able to adapt and find creative solutions will be the ones that succeed. PepsiCo’s commitment to these values should serve it well in the years ahead.