(PEP - Get Report)
matched quarterly profit expectations last week and also said it would raise prices again as costs and weaker consumer spending pressured results.
(KO - Get Report)
also raised consumer prices in the recent quarter as costs for packaging, sweeteners and other ingredients continued to rise.
As of earlier this year,
Pepsi had been able to better manage the risk of rising commodity costs than Coca-Cola
, Pepsi had turned to improved operational efficiencies and price increases to help offset those costs, but CFO Hugh Johnston conceded in April that pricing in the first half of the year "has not been what we would have liked or expected."
Costs for plastic bottles and fuel to transport beverages has risen as oil prices heated up this year. Oil prices affect the price of polyethylene terephthalate, or PET, the plastic used by beverage companies to make soda bottles. Coke, Pepsi, Dr Pepper Snapple and other beverage makers cannot hedge the prices they pay for PET because the material is not traded like other commodities.
>>For upcoming earnings and estimates, see our
Written by Miriam Marcus Reimer in New York.
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