Pepsi reports fourth quarter profits are down 19%, though revenue for the giant food and beverage manufacturer is up overall. Beverage Digest Executive Editor Duane Stanford says this is a continuation of an overall trend that began 11 years ago as buyers move from carbonated, sugary beverages to what they perceive as healthier options. “You’ve got consumers that are wary of added sugar, you’ve got legislators calling for soft drink taxes, all of that increases this potential stigma around certain types of beverages,” he tells KTRH News. Last year Beverage Digest reported annual per capita consumption of carbonated soft drinks were at the lowest level since 1985. “You’ve got everything from coffee drinks to dairy drinks, to coconut waters that have really captured consumers attention as they look for things that are healthier or they just meet different sorts of needs they may have,” Stanford says.
Pepsi says their declining profits are the result of a strong dollar.