What's going on?

PepsiCo reported better-than-expected quarterly results on Tuesday.

What does this mean?

No matter how high prices get, you�re still going to be willing to pay for your Quaker porridge, your Aquafina water, and your tangy cheese Doritos to see you through the day. So even though Pepsi�s products were 12% more expensive last quarter than the same time in 2021, shoppers still picked up 3% more snacks and 6% more drinks (tweet this). That pushed up the drinks maker�s organic revenue � which strips out the effects of acquisitions and currency swings � by 13%. And even though Pepsi�s profit tanked by $1.2 billion on the back of the war, it still came in above expectations. The company�s optimistic things will keep going strong too: it upped its yearly organic revenue growth outlook from 8% to 10%.

Why should I care?

The bigger picture: Shrinkflation in action.
This is the second quarter in a row that Pepsi has upped its 2022 revenue forecast, but it�s not done the same for profit. That�s probably because the prices Pepsi pays its US suppliers are rising even faster than the prices it�s charging its customers � something that�s likely to hit Pepsi�s profit margins even more going forward. And while it could keep hiking prices, it�s probably aware that there�s only so far it can push things before cash-strapped customers tap out. That might be why it�s planning to save money in other ways � by, say, reducing product sizes.

Zooming out: Pepsi�s green ambitions are lip service.
The world�s three biggest soda companies � Pepsi, Coca-Cola, and Keurig Dr Pepper � release more heat-trapping gases than the country of Belgium, which is partly down to the production of their plastic bottles. That�s encouraged the industry to invest around $8 million in an initiative to reduce plastic use and increase recycling. But experts say it isn�t going nearly far enough: the three biggest players earn that sort of cash in three hours flat.