ANZ FMCG suppliers: AMC/BXB read-through from PepsiCo Inc (PEP) 2Q26 result

Research evidence excerpt

ANZ FMCG suppliers: AMC/BXB read-through from PepsiCo Inc (PEP) 2Q26 result

Equity Research

10 July 2026 | 10:02AM AEST

AUSTRALIA INDUSTRIALS

ANZ FMCG suppliers: AMC/BXB read-through from PepsiCo Inc (PEP)

2Q26 result

Bottom line Niraj Shah +61(2)9320-1369 | niraj.shah@gs.com

PepsiCo’s 2Q26 result saw strong international momentum offset a soft North Goldman Sachs Australia Pty Ltd

America segment (see Bonnie Herzog’s first take here). North America Foods Sophie Yu

+61(3)9679-1076 | sophie.x.yu@gs.com

volumes were flat (vs. +2% in 1Q26) and Beverages stayed negative at -2%, with Goldman Sachs Australia Pty Ltd

broader North America organic growth trailing management’s expectations as US Alex Nosatti

food and beverage categories moderated on consumer budget tightening. +61(2)9321-8342Goldman Sachs Australia| alex.nosatti@gs.comPty Ltd

Management attributed much of the softness to elevated gas prices - exacerbated

by the Iran conflict - which have disproportionately hit impulse channels like

convenience stores, where reduced traffic is converting less effectively into

purchases. Gatorade (an important, high-value category for AMC) performed well,

delivering volume and revenue growth, gaining share, and being restaged with

simplified on-pack visuals, sharper hydration messaging, and the gradual removal of

artificial colors. International was the clear bright spot, with strong organic volume

across convenient foods and beverages, with management noting that international

beverage volumes represent two-thirds of total company volumes, while

international foods exceed 50%. On outlook, management sees a line of sight to the

low end of its 4-6% long-term organic sales range in 2H, supported by accelerating