Lower-income consumers remain ‘under pressure’ as big food companies lean on value message


Big food companies like Coca-Cola (KO), PepsiCo (PEP), and Domino’s Pizza (DPZ) reported quarterly earnings this week and offered a similar slant on how they are messaging to customers feeling the pinch from higher prices: It’s all about value.

“The overall resilience in the US continues to be impressive, but … there is a lower-income segment that is under pressure,” Coca-Cola CFO John Murphy told Yahoo Finance on Tuesday.

“Part of what we continue to be very focused on is to offer even more affordable options, so that we maintain that section of our consumer base.”

Beverage volumes at soda giants Coca-Cola and PepsiCo fell yet again in North America this quarter, dropping 1% and 2% respectively.

“We’re trying to make granular investments in value, make sure that consumers stay within our brands. Better entry points, better value every day, and that has been successful,” PepsiCo CEO Ramon Laguarta told investors on the company’s earnings call.

Coca-Cola CEO James Quincey told investors the company’s advertising push around “focused value and affordability initiatives” yielded positive results during the quarter.

Both beverage giants also flagged their zero-sugar portfolios as sources of growth during their most recent quarter.

Coca-Cola reported a fourth consecutive quarter of double-digit volume growth for Coke Zero and Diet Coke in North America. Coke is also set to add a soda made with real cane sugar to its US portfolio this fall after President Trump took to social media to announce that the company would be using “REAL Cane Sugar” in its drinks in the US.

Read more: Live coverage of corporate earnings

Laguarta called out the “functionality” of PepsiCo’s no-sugar portfolio, including hydration and energy — the company owns brands Gatorade and Rockstar, among others that play in these categories — along with protein initiatives in its food portfolio as key strategies for growth.

SAN DIEGO, CALIFORNIA - MARCH 11: Cases of soda, including Coca-Cola, Sprite, Pepsi and Dr. Pepper are displayed at a Costco Wholesale store on March 11, 2025 in San Diego, California. (Photo by Kevin Carter/Getty Images)
Cases of soda, including Coca-Cola, Sprite, Pepsi and Dr. Pepper are displayed at a Costco Wholesale store on March 11, 2025, in San Diego, Calif. (Kevin Carter/Getty Images) · Kevin Carter via Getty Images

At Domino’s, CEO Russell Weiner said consumers looking for value across categories have prompted the pizza giant to go on offense. In its latest quarter, the company saw share gains across all income cohorts.

“The important thing to understand right now is whether it’s pizza or burgers or QSRs in general, there is pressure because consumers are looking for value,” Weiner said on a call with investors Monday.

“The big difference with Domino’s is when we provide value, we’re going on offense. We’re doing it because we think we can grow.”



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