Pepsi says drinkers are pulling back and buying less of its namesake beverage

"We do not feel good about the beverage business," CEO Ramon Laguarta said on the company's earnings call.

The soda slowdown is the latest indication that many consumers are spending more carefully. US consumer sentiment recently dipped below pandemic levels as wages have failed to keep up with inflation. Rising interest rates could end up stretching consumers even more.

"We don't expect the consumer to suddenly become much more in a much better place in the next 12, 18 months," Laguarta said.

While some products, such as energy drinks, are still selling well, many of PepsiCo's sodas were a weak point during the quarter, Laguarta said. "We're putting all the urgency of the business and the focus on improving our performance in soft drinks," he said.

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