Soda is one of the most popular soft drinks around the world due to its sweet taste and addictive carbonation, providing the perfect midday pick-me-up without needing another cup of coffee.
Millions of people around the world have made drinking soda a daily habit almost impossible to break, so if you think your soda addiction is worrying, you're not alone.
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The United States ranks fifth for the most sodas consumed as of 2024, with one in five people reporting consuming at least one soda per day, for a total of about 154 liters per capita annual.
Although there are millions of options to choose from, Americans have their favorite soft drink brands, with Coca-Cola, Dr. Pepper and Pepsi being the most popular in terms of revenue generated.
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PepsiCo is an American multinational food, snack and beverage corporation and the second largest food company in the world. It owns popular brands like Lay's, Gatorade, Quaker Oats, and of course, Pepsi, to name a few.
PepsiCo faces weak US demand and struggles with sales slowdown
Although PepsiCo is one of the world's most profitable food companies, with products consumed in more than 200 countries and territories, the company was not immune to the inevitable effects of inflation, increasing competition and ever-evolving consumer trends. .
PepsiCo's third-quarter earnings for 2024 showed that its total net income decreased 0.6%, the North American beverage sector had stable revenue and earnings per share decreased 5% year over year.
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The disappointing earnings results could indicate a problematic trend, as it was the second consecutive quarter of weaker-than-expected sales.
However, PepsiCo has just been hit with a lawsuit alleging illegal practices that could be even more problematic than its current financial downturns.
FTC Files Lawsuit Against Pepsi for Rigging Soft Drink Competition
On Friday, the US Federal Trade Commission (FTC) filed a lawsuit in the United States District Court for the Southern District of New York against PepsiCo (ENERGY) for the fixing of the soda contest.
The commission alleges that the company illegally offered lower product prices to large retailers, including Walmart. (WMT) while increasing prices for competing local and independent retailers and customers.
“The FTC's action will help ensure that all grocers and other businesses, regardless of size, can be fairly compensated and compete based on the merits of their skills, efficiency and talent,” said FTC Chair Lina M. Khan.
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This illegal practice violates the Robinson-Patman Act (RPA) and harms American consumers. It inflates prices and decreases fair competition among retailers.
The Robinson-Patman Act is a federal law that prohibits price discrimination through the use of advertising, promotional subsidies, and other anticompetitive practices.
“For years, Pepsi has disadvantaged retailers, ranging from large supermarket chains to local and independent convenience stores, who compete with one of its largest customers by constantly offering that big-box retailer's favorite customer benefits and perks. such as paid promotions, while denying those same benefits to its competitors,” the FTC stated in the lawsuit.
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