12 June, 2008 - Pepsi CEO Indra Nooyi has said the food and drink industries will be less affected than other sectors by the cut in consumer spending triggered by global commodity price hikes.
But the head of one of the world’s largest drinks companies also admitted it was difficult to decide how much of the increase in commodity costs could be passed on to customers.
Speaking at business forum in New York, Nooyi was reported as saying: “At what point is the consumer going to say, 'I have to cut back' or 'I have to change what I eat because I can't afford the food in the basket.
She said, however, the beverage and food industries would not be as badly hit as other sectors because people still have to drink and eat. They more likely to do so at home in times of austerity, and such a trend was good news for the “comfort food” Pepsi offered, she added.
Nooyi also revealed the company was working on between 20-30 acquisition deals around the world at any one time – but refused to go into details.
"I'd have to shoot everybody here if I told you," she joked.