PepsiCo, Inc. Reports Earnings Decline In Fourth Quarter, Gains For Full Year

For the full year, volume declined 1 percent, with unit growth up more than 1 percent. Volume growth was adversely impacted by cycling the "20% More Free" promotion. Net revenue growth for the quarter and full year reflected the impacts of volume performance and effective net pricing.

Quaker Foods North America (QFNA) performance for the quarter and full year reflected declines in the hot cereals and ready-to-eat cereals categories, and a competitive pricing environment. QFNA invested in improving its quality and in innovation launched in the second half of 2010 that will continue to receive marketing support in 2011.

PepsiCo Americas Beverages (PAB), in a highly competitive environment, North America volume (excluding the impact of incremental volume from the agreement with Dr Pepper Snapple Group) grew 1 percent in the quarter behind strong performance of the company's advantaged non-carbonated beverage portfolio. The fourth quarter of 2010 marks the company's fifth consecutive quarter of sequential improvement in organic volume performance in North America. PAB widened its liquid refreshment beverage volume share advantage versus its primary competitor in the U.S. in measured channels for the quarter and the full year.

Volume, revenue and operating profit growth for the quarter and full year benefited from the impact of the anchor bottler acquisitions.