News Summary: PepsiCo profit dips amid turnaround
NEW YORK (AP) — THE NUMBERS: PepsiCo Inc.'s net income fell 5 percent in the third quarter, as the company spent more on marketing and was hit by higher costs for ingredients and unfavorable currency exchange rates.
THE BACKGROUND: As part of a turnaround push, PepsiCo is investing more heavily in advertising and marketing to bolster flagship brands such as Gatorade, Frito-Lay and Tropicana. The hope is that strengthening the brands will make shoppers more willing to pay higher prices.
DRINKS DROP: In PepsiCo's flagship beverages unit for the Americas, sales volume fell 3 percent. The company blamed some of the drop on dropping less-profitable products.