A：PepsiCo has not experienced any major issues from a supply chain standpoint and continues to manage the situation well. The company has some systemic hedging programs in place which provide near-term visibility. The scale of PepsiCo is an advantage in managing through this situation. The company's guidance reflects the assumption that they can mitigate the impact of inflation this year, which is reflected in their assumptions on guidance. As of the call, no significant impact on demand has been seen due to the war, and the company's strong commercial programs are continuing to be executed.

A：PepsiCo's supply chain and procurement teams have been working around the clock to manage the current situation and are doing a very good job in ensuring that the company can continue to service its customers without major issues.

A：PepsiCo has systemic hedging programs in place that offer some near-term visibility. They typically have about a two-to-two month hedge in place. The company's approach to managing inflation over time includes growing their way through it by leveraging infrastructure, pushing harder on productivity, and using options within their price pack architecture. The company aims to do the majority of the work through the first two methods but may play in all three areas to combat inflation. The visibility and guidance provided are based on the assumption that they can mitigate the impact of inflation this year, which is reflected in the company's guidance.

A：The international business is a key pillar of PepsiCo's long-term growth strategy and is continuing to accelerate. There has been no impact on demand due to the war started, and in some markets, there has been a benefit because of a stronger supply chain compared to some competitors. PepsiCo is executing strong commercial programs, especially with the World Cup being a significant driver of execution and innovation. The sustainability of the current performance is indicated by the company's focus on executing these strong programs and the lack of any notable impact being assumed in their guidance.

A：The company is in the midst of the resell execution phase and feels positive about the brand reactions, customer support, and market execution. The expectation is to have positive volume growth in the coming quarters, supported by the initiatives mentioned earlier.

A：The company acknowledges the volume pressures in the TBNA segment, which are related to the continued rollout of smaller pack sizes for affordability and reliance on price pack architecture initiatives. The strategy to improve volume growth includes focusing on value, supporting with additional advertising and marketing, and growing volume and sales, aiming to affirm and manage margins while providing flexibility to meet guidance.

A：The company affirms its guidance and is optimistic about achieving organic revenue growth and core operating margin expansion for the year, despite a property sale gain from last year that negatively impacted the performance in the P&FNA segment.

A：The volume impact of the transition of the North America beverages business to a third-party is expected to be neutral when adjusted for the case pack water transition. Excluding this transition, volume is almost flat and is anticipated to show acceleration in the coming periods.

A：The company views the global brand restage as a success, performing well both globally and in the US with improved volume in La. It also reports household penetration gains across all corporate brands and growth in the permissible portfolio, particularly in double-digit brands like SunChips and SmartFood. The company believes it is in a very good place holistically and is optimistic about the sequential improvement of the business based on continued execution of its value and innovation strategies.

A：The expectation is that if North American Foods and International progress continues successfully, the company can deliver toward the higher end of the guidance range in the back half of the year. However, the exit rate for the year is expected to be closer to the lower end of the long-term guidance of 4 to 6.

A：The company views the execution of their 'hungry and thirsty for growth' strategy as very positive, with an acceleration in international, momentum in Pb A both organically and reported, and sequential growth in pfma, which is ahead of current expectations.

A：The company anticipates that the majority of innovation is at a lower stage of adoption (40-50% ACB) and plans to accelerate this in the balance of the quarter and into the summer. Distribution gains and category wins are also expected to increase towards the summer. The company is working with retail partners on planogram resets and gaining space from resellers, with some customers increasing and some decreasing. This is why the business is expected to accelerate in the summer.

A：In the first quarter, there were price reductions in eight states, mainly in beverages and candy, due to restrictions. It's too early to conclude the impact but the company will continue to monitor how customers balance spending with other discretionary income. The LRB category remains robust overall.

A：The food category is experiencing a stable growth, with the category of savory snacks accelerating and growing ahead of food and beverages in some regions. The company has been successful in bringing more consumers into the category, and the category is expected to grow consistently above food and beverages with savory snacks continuing to accelerate.

A：The company's market share on a value basis is still in decline, and this is part of their strategic review. They are focused on improving market share along with the bottler network. The company sees itself growing significantly in the total business and accelerating in the functional hydration category, led by Gatorade and Propel, which are gaining share.

A：The modern soda segment is experiencing good growth and the Mountain Dew brand is starting to accelerate in sales, particularly with new flavors.

A：The projected improvement for the division is a sequential improvement in script and organic sales, with an expectation of growing profit in North American foods.

A：The company is focused on reducing cost per unit and overall cost for the food business and across the company. They have strategies such as reduced headcount, plant closures, and a lower SKU count that are contributing to improved supply chain metrics. They are also deploying technology like AI across the company and optimizing routes for transportation.

A：Productivity gains are a critical part of the company's strategy, which involves an ongoing battle to grow volume and reduce expenses. They are focusing on improving customer service measures, reducing expenses, and aligning operational metrics with the necessary standards to drive overall company productivity.

A：The strategies include leveraging technology and AI to reduce the time salesmen take to take orders and optimizing advertising and marketing to improve the return on investment across anchor markets like the US. The company is testing and learning the idea of integrating the supply chain to create more value, growth, and cost efficiency.

A：The increase in occasions is attributed to bringing back consumers who stopped buying the category by optimizing value in multi-serve and multi-packs, as well as attracting new consumers due to brand innovations like naked and low sugar Gatorade. These innovations appeal to consumers who previously did not purchase the category but now return because they love the brand's offerings.

A：PepsiCo plans to engage consumers by having global soccer players double down on activities that link Frito-Lay to sports watching occasions. The company will personalize communication based on consumer team support and offer occasions for fans to enjoy matches with PepsiCo products. The activation will involve partnerships with retailers and delivery partners worldwide to capture consumption moments and drive excitement and occasional development globally.

A：PepsiCo is using the World Cup as a major opportunity to engage consumers through innovation with flavors from around the world and activations that reflect the passion for soccer among consumers. The goal is to personalize experiences for different consumer segments, such as team supporters, and to create global brand awareness, occasion development, and excitement. This is expected to result in space gains, retail partnerships, and the introduction of new consumers to the brand, as well as increased frequency and new occasions for existing ones.