Is PepsiCo cutting the prices of its snacks by 15 per cent? That means its profit margins were too high (like many manufacturers)

The PepsiCo case confirms what was already known: many major brands have inflated their prices and margins in recent years. Not least because a 15 per cent drop suggests they had plenty of ‘room for manoeuvre’. PepsiCo was the world’s second-largest food producer in 2023, behind Nestlé and ahead of the Brazilian meat producer JBS.

Quick Take — Consumption in China is accelerating

data released by some of China’s trading giants show an acceleration of consumption in China. it is positive data, but not yet full health. remember that the recovery of consumption is one of the targets officially communicated by the government, which has introduced a series of targeted actions to stimulate it.

china is the second largest consumer market in the world

one sector that has continued to suffer in 2024 is coffee and bubble tea chains

  • Luckin saw revenues at -3.4% in 4Q24
  • Starbucks -6%