Coca-Cola and PepsiCo both beat Wall Street's estimates for their third-quarter results, but only Coke reported volume growth.
More than two years later, both companies reported that higher prices have boosted sales. Pepsi paused price hikes earlier this year but plans a"modest" increase next year. Coke took longer to pause its higher prices, but CEO James QuinceyBecause of the timing of their price increases, Coke's North American drink prices were up only 5% this quarter, compared with Pepsi's increase of 12%.
"The reason why snacks have done so well relative to other categories is because it was really a trade down option on a meal," Modi said. "There's still a rebound and strong growth in away-from-home channels, not just some of the restaurants, but the amusements, travel, leisure, hospitality, those things," Quincey told analysts."If you were going to a mid-tier restaurant, maybe now you're going to quick-serve fast food, which is where Coke has a lot of its business," Modi said.