Pepsi's profits up! But not because of soda

A general view of atmosphere at the Pepsi Bioreactive Concert

Pepsi surprised investors today with higher-than-expected earnings: Pepsi reported a net income of $1.22 billion in the first quarter of this year. 

But don't chalk the earnings up to sales of its famous soda. They've been flat. The real money is in chips.  It seems we're eating more of the chips Pepsi's Frito Lay division makes, specifically Fritos and Doritos.

"The PepsiCo products, whether it's chips or the other grab and go items they have certatinly fit well within the consumer's need for on-the-go food" - David Henkes, Vice President at Technomic.

Henkes says Pepsi is also venturing into other types of beverages, like juices and teas. It also makes energy drinks, which sell for more than soda. With Pepsi snacks gaining popularity in developing countries like India, Henkes says a great deal of Pepsi's future growth will be in new markets. 

About the author

Nancy Marshall-Genzer is a senior reporter for Marketplace based in Washington, D.C. covering daily news.

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