Despite trends that suggest U.S. consumers are drinking less soda, PepsiCo. Inc. saw a strong earnings report for the last quarter. According to Reuters, the net income of the company increased to $2.11 billion, a boost of $10 million from the year previous. In North America, sales for the beverage division rose 2 percent.
Several changes spurred these positive results. The soda company reduced costs by selling its stake in Britvic, a U.K. bottling company, of which it owned 4.5 percent. In addition, it increased sales of higher-margin packs of soda.
The beverage company is aware of changing consumer tastes – and is looking to cater to them. In 2006, it bought Naked Juices ahead of the juicing craze. In 2016, it acquired KeVita, a probiotic drinks company known for its kombucha, a fizzy fermented drink promoted for its health benefits. The company paid $200 million for the acquisition. Fortune Magazine noted that this purchase will strengthen PepsiCo.’s presence in the “functional beverages” market.
Some analysts believe that PepsiCo. will also buy Vita Coco, which sells coconut water. This is part of a greater acquisition strategy to offer more low-calorie beverage options to consumers.