PepsiCo, Inc. (NASDAQ:PEP) was among Jim Cramer's stock calls, as he discussed the rising market speculation. Cramer praised the company's CEO, Ramon Laguarta, as he said: This morning, PepsiCo's Ramon Laguarta put on a clinic about how to grow earnings in a group that we've all, for the most part, given up on, consumer packaged goods… Let me walk you through the details here because I think it's an important story. PepsiCo's a complex company and doesn't lend itself to easy analysis.
There's Frito-Lay, the snacking business. It's the chief mover of the stock. Then there's the beverages led by Pepsi, but also, of course, with the inclusion of Gatorade, which had a total facelift today.
The company's been challenged by a multitude of hardships… Some of these headwinds have dissipated. We're seeing some behavior changes among people in GLP-1s… The answer is smaller packages. That's what Ramon figured out.
A small… pack of chips with a good price is crushing it here. The price differential of a smaller bag has worked for more than just GLP-1 users. It seems like a great deal for consumers who are tired of inflation.
Second, Ramon's winning with innovation. The fast hydration system of Gatorade, faster to hydrate than water, was just introduced. I think it's going to be a home run.
There's acquisitions like poppi, a more natural drink that's doing quite well. The analysts seem a little clueless about these changes, though. Most are focused on how Ramon's been able to control costs….
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