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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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Avs show off ‘deeper’ team in late scoring barrage

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Avs show off 'deeper' team in late scoring barrage

DENVER — With a five-goal third-period barrage that saw a different player score each goal Friday night, the Colorado Avalanche showed the version of the team they believe can make up for last year’s first-round exit a year after winning the Stanley Cup.

The Avs cruised to a 6-2 win against the Winnipeg Jets to take a 2-1 series lead in the Western Conference quarterfinals.

“Last year, we had no goals outside of our top three forwards and defensemen,” Avalanche coach Jared Bednar said. “This year, I don’t know, you’d have to total it up, but it’s huge contributions. We’re a deeper team. There’s no question about it.”

A lack of secondary and tertiary scoring last season contributed to the Avs scoring 19 goals in the first round before they were eliminated in seven games by the Seattle Kraken.

They already have 17 goals through three first-round games this year, with 10 of them coming from beyond their first line and their top defensive pairing.

Veteran winger Zach Parise, who signed with the Avs in February to win his first Stanley Cup, staked the team to a 1-0 lead before the Jets used the second period to take a 2-1 lead through Tyler Toffoli and Josh Morrissey.

Penalties, however, played a role in grounding the Jets in the third period.

“Since I’ve been here, I thought the third was the best period we’ve played,” said Avalanche center Casey Mittelstadt, the team’s trade deadline acquisition who finished with three assists.

A power-play goal from Nathan MacKinnon tied the score a little more than two minutes into the third. The Avs took the lead through another power-play goal from Valeri Nichushkin almost two minutes later.

Goals from Artturi Lehkonen and Ross Colton extended the lead to 5-2 before Devon Toews’ empty-net goal made it 6-2 with 3:35 remaining in the game.

“I think for us, being down one in the third there, we didn’t sit back on our heels,” Colton said. “I think we just kind of took it to them. When we play with that speed and that energy, we’re a good team. Obviously, we had some power plays, but we drew them with hard work and getting in on the forecheck and putting them under pressure. It all starts with that.”

At the end of the game, there was an on-ice scrum between the Avs and Jets that saw Jets defenseman Brenden Dillon emerge with a bloodied, lacerated left hand. Dillon immediately left the ice and entered the Jets’ dressing room.

Jets coach Rick Bowness said there was no immediate update available on Dillon’s condition.

“Obviously, a scary situation there,” Morrissey said. “I don’t really have anything to say, but we’re all really concerned for him and just hoping everything is OK.”

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R Kelly loses appeal to overturn 20-year sentence for child sex abuse

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R Kelly loses appeal to overturn 20-year sentence for child sex abuse

R Kelly’s challenge against a 20-year sentence for child sex convictions has been quashed by an appeals court. 

The singer was correctly sentenced to 20 years in prison, a Chicago court ruled on Friday.

He was convicted in 2022 on three charges of producing child sexual abuse images and three charges of enticement of minors for sex.

In his appeal, Kelly, 57, argued Illinois’ old statute of limitations – which required prosecution of child sex crime charges within 10 years – should have applied, rather than the current law permitting charges while an accuser is still alive.

The appeals court rejected this, labelling it an attempt by Kelly to elude the charges entirely after “employing a complex scheme to keep victims quiet”.

He also argued that charges involving one accuser should have been tried separately from the charges tied to three other accusers due to video evidence that became a focal point of the Chicago trial.

Prosecutors have said the video showed Kelly abusing a girl. The accuser, only identified as Jane, testified for the first time that she was 14 when the video was taken.

The three-judge panel from the appeals court noted jurors acquitted Kelly on seven of the 13 counts against him “even after viewing those abhorrent tapes”.

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In a written statement, Kelly’s attorney Jennifer Bonjean said they plan to seek a US Supreme Court review of the decision and “pursue all of his appellate remedies until we free R Kelly”.

“We are disappointed in the ruling, but our fight is far from over,” she said.

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ITV newsreader Rageh Omaar ‘receiving medical care’ after on-screen behaviour worries fans

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ITV newsreader Rageh Omaar 'receiving medical care' after on-screen behaviour worries fans

ITV News presenter Rageh Omaar is “receiving medical care” after becoming “unwell” live on-air, the TV channel says.

Omaar, 56, was presenting News At Ten on Friday when he appeared to be struggling to read the news bulletins, stumbling over words, prompting concern online.

ITV pulled the show from its scheduled re-run on ITV+1, telling viewers that the channel was “temporarily unable to bring you our +1 service”.

Afterwards, an ITV News spokesperson said: “We are aware that viewers are concerned about Rageh Omaar’s wellbeing.

“Rageh became unwell while presenting News at Ten on Friday and is now receiving medical care.

Rageh Omaar attending the ITV Palooza held at the Royal Festival Hall, Southbank Centre, London. Picture date: Tuesday November 23, 2021.
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Rageh Omaar in 2021. File pic: PA

“He thanks everyone for their well wishes.”

No further details were given and it is unclear what was happening to Omaar during the broadcast.

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Omaar covers major news stories as ITV’s international affairs editor, while also presenting the channel’s current affairs programme On Assignment.

He was previously a senior foreign correspondent for the BBC, rising to prominence during the invasion of Iraq in 2003.

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