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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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Jays’ Springer leads off with 21st postseason HR

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Jays' Springer leads off with 21st postseason HR

TORONTO — The Blue JaysGeorge Springer homered on the first pitch from Seattle‘s Bryce Miller in the American League Championship Series opener Sunday, moving past the New York Yankees‘ Derek Jeter into sole possession of fifth place on the career list with his 21st postseason home run.

Springer’s 385-foot drive to right field on a fastball at the outside corner put Toronto ahead with the first postseason leadoff home run in Blue Jays history. Springer has 63 leadoff homers in the regular season, second to Rickey Henderson’s record 81.

Manny Ramirez hit a record 29 postseason homers and is trailed by Jose Altuve (27), Kyle Schwarber (23) and Bernie Williams (22).

However, also in the first inning, Blue Jays outfielder Nathan Lukes fouled a ball off his right knee, falling in pain. He stayed in the game and drew a 12-pitch walk, then flied out leading off the third and was replaced by Myles Straw for the start of the fourth.

The team said he bruised his knee and was being further evaluated.

Lukes went 4-for-12 with five RBIs in Toronto’s division series win over the Yankees, including a key two-run single in the Game 4 clincher. He also made a diving catch in Toronto’s Game 1 win.

The Associated Press contributed to this report.

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L.A. to start Snell in Game 1, Ohtani later in NLCS

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L.A. to start Snell in Game 1, Ohtani later in NLCS

MILWAUKEE — The Los Angeles Dodgers will start lefty Blake Snell in Game 1 of the NLCS against the Milwaukee Brewers on Monday night while righty Yoshinobu Yamamoto will get the ball in Game 2. It means Shohei Ohtani will get just one start in the series, during the middle leg back in Los Angeles.

“He’ll pitch at some point, but we just don’t know which day,” Dodgers manager Dave Roberts said on Sunday.

Unlike in previous spots, the Dodgers are not concerned with pitching Ohtani before a day off, choosing to maximize rest for the other starters as the team embarks on its first best-of-seven series this postseason.

“Not as important,” Roberts said. “I think just appreciating having four starters in a potential seven-game series and who can pitch potentially twice, and that’s kind of the impetus, versus Shohei having that day off after a game.”

Ohtani is hitting just .148 this month with a 4.50 ERA over six postseason innings. Roberts was asked if the pitching plan for him was related to his slump at the plate.

“No, not at all,” Roberts answered. “I think it was just kind of Shohei’s going to pitch one game this series. So, it’s one game and then you have two other guys that potentially can pitch on regular rest.”

The Brewers are likely to counter with an opener in Game 1 before handing the ball to a starter for “bulk” innings.

“Game 1 looks, ‘OK, who on our team that can give us length,'” Brewers manager Pat Murphy said. “[Jose] Quintana, [Quinn] Priester, something like that — give us bulk.”

Murphy indicated righty Freddy Peralta would start Game 2 and then they’ll figure out Game 3 after that. He wasn’t sure yet if rookie Jacob Misiorowski would start a game or pitch multiple innings out of the bullpen.

“I don’t know,” Murphy stated. “I really don’t know. That hasn’t been concrete yet. There’s a possibility he’d start.”

Rosters don’t have to be turned in until Monday morning, but the Dodgers are considering carrying just two catchers as Will Smith‘s hand injury isn’t a big concern. He caught the entirety of Games 3 and 4 in the NLDS.

“I have a couple of conversations to have shortly,” Roberts said. “But yeah, that’s a good thought.”

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Jays name Yesavage starter for Game 2 of ALCS

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Jays name Yesavage starter for Game 2 of ALCS

TORONTO — Blue Jays rookie Trey Yesavage will start Game 2 of the American League Championship Series on Monday, the team announced Sunday.

With the announcement, Yesagave addressed the media before Game 1 at Rogers Centre and began his news conference with an unprompted statement decrying the vitriol his loved ones have recently received on social media.

“I want to start off by saying something,” Yesavage said. “Living in this world where there’s so many different opinions and feelings, which results in a lot of hate, it’s sad to see that people close to me are being attacked for my performances on the field. These people have done nothing to warrant negativity for my actions, whether that’s my parents, my brothers, my girlfriend, family. It’s just really sad.”

Yesavage declined to elaborate on the situation. It’s the second time that a rookie starting pitcher has denounced social media attacks this postseason; Yankees right-hander Cam Schlittler said Red Sox fans “crossed the line” by attacking his family before his start against Boston in Game 3 of the wild-card series.

“I know I have the platform to address it, so I am,” Yesavage said. “I hope that people can realize that those individuals have nothing to do with what happens on the field or whatnot. If you have a problem, I’m a man; I can take whatever opinions anybody has about me or my life. So, I just wanted to get that out there.”

Game 2 will be Yesavage’s fifth career major league outing. His fourth was a historic performance against the Yankees in Game 2 of the AL Division Series, when he tossed 5⅓ no-hit innings with 11 strikeouts.

Mariners manager Dan Wilson said his team has not decided on a Game 2 starter, though Logan Gilbert is the likely choice. Seattle used Gilbert and fellow starter Luis Castillo in their 15-inning Game 5 win over the Tigers on Friday night. Gilbert threw 34 pitches over two innings after allowing a run in six innings in Game 3 on Tuesday.

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