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Price hikes lifted PepsiCo’s profits in the third quarter, but the company says those increases are likely to moderate in the coming year.

Pepsi raised prices 11% in the July-September period, the seventh straight quarter that the Purchase, New York, company has increased prices by double-digits.

The higher prices took a toll on demand, with sales volumes down 2.5%.

PepsiCo said some of that volume decline is strategic.

The company said it has been shrinking package sizes to meet consumer demand for convenience and portion control.

Units are growing much faster than volume, PepsiCo Chairman and CEO Ramon Laguarta said Tuesday in a conference call with investors.

But there is also some consumer pushback on prices. Consumers are looking for value and, in some cases, are trading down to cheaper stores.

I do think that we see the consumer right now being more selective, PepsiCo’s Chief Financial Officer Hugh Johnston said Tuesday on a conference call with investors.

Still, Johnston said convenience store sales and food service sales, which usually weaken in times of high consumer stress, are strong.

Johnston said Pepsi continues to see higher prices for commodities like grain and cooking oil.

In 2024, Pepsi expects inflation to be slightly higher than the 2% to 3% it was accustomed to before the pandemic.

Consumers should expect to see price increases roughly in line with inflation, he said.

Pepsi is watching the growing use of weight loss drugs like Ozempic, but so far their impact on the business has been negligible, Laguarta said.

They could be outweighed by other trends, including rising incomes in many countries and the growing popularity of snacking in place of meals.

Were seeing a lot of tailwinds that will continue to drive our categories, he said.

Pepsi shares were up 1.5% in morning trading.

In the third quarter, Frito-Lay North America sales volumes dropped 0.5% during the July-September period as net prices rose 8%.

North American beverage sales volumes dropped 6% as prices rose 12%.

Sales volumes in Europe were flat. Sales volumes in Latin America dropped 5%.

Net pricing includes price hikes as well as changes in the mix of products sold and smaller package sizes.

In prepared remarks Tuesday, PepsiCo said consumers are gravitating toward smaller packages for convenience and portion control.

Net revenue was $23.4 billion, the company said Tuesday. That was in line with Wall Streets expectations, according to analysts polled by FactSet.

Net income for Pepsi rose 14% to $3.1 billion, or $2.24 per share.

That beat the $2.15 per share that analysts had forecast.

Pepsi now expects its full-year earnings per share to increase 13%, up from previous projections of 12%, due to the strength of its sales and cost-cutting efforts.

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Sports

‘Very emotional’ Sergachev returns, Lightning win

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'Very emotional' Sergachev returns, Lightning win

Mikhail Sergachev‘s return sparked the host Tampa Bay Lightning, who avoided elimination, with a 6-3 victory over the Florida Panthers in Game 4 of their first-round series on Saturday.

One of the Lightning’s top defenseman had been out since fracturing the tibia and fibula in his left leg on Feb. 7. Tampa Bay coach Jon Cooper had predicted the Lightning would need to “go far” in the playoffs to see Sergachev dress for another game. Sergachev surpassed all expectations by suiting up just 80 days following that break to be a last-minute addition to the Lightning’s starters.

“I felt like a hockey player again. It was unbelievable,” Sergachev said. I found out yesterday the [doctors] cleared me, and it was Coach [Cooper’s] decision [if I played]. I stayed at the rink a little longer waiting for the coach to say yes or no. And he said yes. I got very excited.”

Sergachev had hoped he’d be able to come by for Game 1 of the series but that didn’t pan out. Instead, he logged 17:03 in ice time and notched an assist on Brandon Hagel‘s second-period goal through his Saturday debut. Sergachev admitted to being “a little bit tired” in the end after so long on the sidelines. But Sergachev’s smile never wavered.

Even though he’s played nearly 500 NHL games since being drafted by Tampa ninth overall in 2016 and established himself as one of the league’s rising stars on defense, there were still a few butterflies present before Saturday’s game.

“Honestly, I couldn’t really sleep last night; it felt like my first NHL game again,” Sergachev said. “And then you go on the ice, and you get that [reception] from the fans in the warmup — it made me very emotional. I’m thankful to be here.”

The Lightning are grateful to be alive in their series, too. Tampa — still trailing Florida 3-1 — narrowly avoided being swept by its in-state rivals. The Lightning held a 3-0 lead after the first period but the Panthers roared back to cut the deficit to 4-3 after 40 minutes. However, Tampa scored the game’s final two goals to extend the series.

Tampa finally found its footing offensively. The Lightning exploded up front, led by two-goal performances from Steven Stamkos and Hagel and a three-point effort by Brayden Point. The Lightning power play also had its best showing of the postseason, going 2-for-5.

Stamkos credited Sergachev’s return for adding emotional energy to the group before the puck dropped.

“I got chills myself, with the reception he got,” Stamkos said. “The amount of work that goes into coming back from an injury like that, it’s impressive. The timeline is impressive, everything he’s done is extremely impressive. To go out there and jump into a series when we’re down and on the ropes, it was a huge boost for our team. I thought Sergy played outstanding tonight. Hopefully that continues because he’s a big part of our defense for sure.”

Sergachev in turn thanked Stamkos for providing much-needed inspiration from Stamkos’ recovery from a broken leg in 2013.

“Our trainer was showing me videos of Stammer skating like four weeks after [that injury],” Sergachev said. “That kind of pushed me and made me work because the first four weeks since the injury, it was tough mentally. But seeing those videos of him walking pretty much the next day and doing all that stuff kind of helped.”

It wasn’t easy for Sergachev to be back on the injured list. That February game marked Sergachev’s first night back from a previous lower-body injury that held him out of 17 contests. Sergachev was admittedly devasted to see his entire season halted at just 34 games, with two goals and 17 assists. And clearly he was missed, not only by the Lightning players but the fans who welcomed him back warmly.

“Did you hear the introduction? The roar just kept going on,” Cooper said. “All the guys on our bench got up. It was a stirring moment and I thought we carried that right into the first period.”

Cooper had no hesitation either inserting Sergachev immediately into an elimination game. Regardless of Sergachev potentially being rusty — or the high stakes at hand — Cooper knew his defenseman was a lock for the lineup.

“You can tell when a player is ready and when a player is not ready,” Cooper said. “Yesterday, we knew he was ready. I just wanted to check the box today when he showed up. I’ve seen it time and time again. It’s the look in the eye. He was a believer.”

Tampa Bay will continue to believe as well that its playoff run won’t end in Monday’s Game 5 — especially not with Sergachev now along for the ride.

“It was phenomenal,” defenseman Victor Hedman said of having Sergachev in the mix. “We’ve watched from close up how hard he’s worked to get to this day. Super impressed by the way he played. Big momentum boost for the guys. It’s huge.”

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Sports

Favorite Fierceness draws No. 17 post for Derby

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Favorite Fierceness draws No. 17 post for Derby

LOUISVILLE, Ky. — Fierceness was named the 5-2 morning-line favorite for the 150th Kentucky Derby at Churchill Downs and will look to make history in next Saturday’s milestone race as the first entrant to win from the No. 17 post position in 45 attempts.

The Todd Pletcher-trained colt enters the 1¼-mile opening leg of the Triple Crown races on May 4 off a dominating 13½-length win in last month’s Florida Derby at Gulfstream Park and has a third-place finish as a 3-year-old. Fierceness aims to give the Hall of Fame trainer his third Derby win and first since 2017 with Always Dreaming.

Coming just a year after Pletcher-trained Derby favorite Forte was scratched hours before the race with a bruised right foot, Fierceness owner Mike Repole said he is glad to have another top choice, even with history working against the post position.

“We’re in a great spot,” Repole said. “If you could draw it up, you want to be somewhere outside and you don’t want the speed inside. It’s blessed, couldn’t have asked for a better (post) for us other than we found out that (No.) 17 is 0 for 44. And I’m 0 for 9, so we’re 0 for 53 combined, but we’re OK.”

Also, Brad Cox-trained filly Tarifa is the 7-2 morning-line favorite for Friday’s Kentucky Oaks after drawing the No. 8 post.

Sierra Leone, whose 155 points led the Derby qualifying trail, drew the No. 2 post as the 3-1 second choice for the $5 million Grade I premier race for 3-year-olds. The son of Gun Runner and Heavenly Love by Malibu Moon has rallied from deep in the field to win both starts this year including a thrilling trip in the Grade 1 Blue Grass Stakes at Keeneland three weeks ago, which followed a testy entry to the gate.

“He’s just a touch farther in than I wanted but he didn’t get the 1 hole, so I’m OK with that,” said trainer Chad Brown, whose other Derby entry, Domestic Product, drew the No. 15 post at 30-1 odds.

Catching Freedom is the 8-1 third Derby choice from the No. 14 post and will aim to give Cox his first outright Derby victory after Mandaloun was named the 2021 Derby winner following the disqualification of deceased colt Medina Spirit for a failed postrace drug test.

Tarifa will start Friday’s Oaks from the No. 8 post as the 7-2 favorite. She has won all three starts this season to lead the Oaks trail with 150 points and has won four of five lifetime starts while earning $456,000. The dark brown filly will attempt to give Louisville-born Cox his third Oaks win and first since 2020 with Shedaresthedevil.

“Very happy with how she’s coming into it,” Cox said of Tarifa. “I need her to settle. (Jockey) Flavien (Prat) knows her now, rode her in her last two, and he’s had opportunity to breeze her the last two weeks. Hopefully, she gets away well, gets a good, clean trip, and I think she’s gonna like the mile and an eighth.”

Just F Y I, trained by Hall of Famer and four-time Eclipse winner Bill Mott, is the 9-2 second choice in Friday’s $1.5 million Oaks and will start from the No. 13 post. Pletcher-trained filly Leslie’s Rose is the 4-1 third choice from the far No. 14 post, looking to follow up her win in the Grade 1 Ashland at Keeneland on April 5.

The draw was held on opening night of Churchill Downs’ spring meet for the first time and a week ahead of the milestone race, two days earlier than in recent years.

Post time for the Derby is 6:57 p.m. ET. Friday’s Oaks is scheduled for a 5:51 p.m. post.

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Politics

Rishi Sunak does not rule out July general election – but insists ‘there’ll be a clear choice’ when it comes

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Rishi Sunak does not rule out July general election - but insists 'there'll be a clear choice' when it comes

Rishi Sunak has failed to rule out holding a general election in July, as speculation remains rife over the timing of the national vote.

The prime minister has repeatedly said his “working assumption” is the election would take place in the second half of this year – with the law stating January 2025 is the latest he could call it.

But while many commentators have predicted an autumn vote, Sky News’ Trevor Phillips put to Mr Sunak that it could mean as early as July.

Analysis: Sunak needs to learn voters aren’t always governed by the logic of the computer

“Well, look, when it comes to a general election, I’ve been very clear about that multiple times,” the prime minister said.

“And again, I’m not going to say anything more than I’ve already said, I’ve been very clear about that.”

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In his interview – which will air in full on Sunday at 8.30am – Trevor Phillips pushed Mr Sunak five times over whether he would rule out a July general election, but the Conservative leader refused to confirm or deny if it could take place then.

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“You’re going to try and draw whatever conclusion you want from what I say,” he said. “I’m going to always try and say the same thing. You should just listen to what I said, [the] same thing I’ve said all year.

“But the point is… there’s a choice when it comes to the general election. And look, over the past week or so… the country can have a very clear sense of what that difference is going to look like.”

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Sunday Morning with Trevor Phillips

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Outlining his recent commitments to overhauling the welfare system, cutting taxes and increasing defence spending, as well as finally getting his Rwanda bill through parliament in an effort to tackle small boat crossings, Mr Sunak said: “That is the substance of what this government is about and what it’s going to do in the future.

“And when the election comes, there’ll be a clear choice, because the Labour Party has tried to frustrate our Rwanda bill, because they don’t believe in stopping the boats, their economic plan will put people’s taxes up.

“They haven’t said that they will invest more in our defence and they certainly don’t agree with reforming our welfare system to support people into work.”

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Labour has said it wants to match the hike in defence spending when the financial circumstances allow, and has promised to scrap the Rwanda bill if it gets into power.

This week, its pre-election focus has been on railways, promising to renationalise train operators and “sweep away” the current “broken” model if the party wins the next election.

Watch Rishi Sunak’s full interview on Sunday Morning with Trevor Phillips at 8.30am

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