Pepsi targets above-GDP sales growth for 2026

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June 24, 2026 | 12:00am

MANILA, Philippines — Beverage firm Pepsi-Cola Products Philippines Inc. (PCPPI) is aiming for sales to outpace the country’s economic growth this year to be supported by strong demand for flavored and energy drinks and the expansion of its distribution network.

In an interview with The STAR, PCPPI president and CEO Phyo Phyu Noe said the company’s sales have been growing above the country’s gross domestic product growth over the past two years and the intention is to sustain that this year.

The economy grew by 4.4 percent last year, slower than the 5.7 percent growth in 2024.

For this year, Department of Economy, Planning and Development Secretary Arsenio Balisacan said the government hopes to achieve 3.5 to 4.5 percent economic growth, lower than the five to six percent growth target announced earlier.

Phyo said that Mountain Dew and Sting, which have both performed well in their respective segments, are expected to remain as the firm’s growth drivers.

He said that Mountain Dew is the number one brand in the country’s carbonated soft drink flavor segment, while Sting is the dominant player in the energy drink space with a 60 percent market share.

While the Middle East crisis has pushed up fuel prices and other costs, he said that the company has kept price increases at a minimum or low single-digit level.

“Demand has been stable. So from that perspective, because we are diligent in our inevitable price increases, we’ve been able to ensure that the stability in demand is there,” he said.

He said the company also has fuel subsidies in place for its partners to ensure the continued distribution of its products.

Apart from demand for its offerings, PCPPI expects growth to be supported by the wider distribution of its products by reaching more sari-sari stores, which account for the bulk of its sales.

“Our goal is to eventually serve all these 1.5 million sari-sari stores, together with our partners,” Phyo said.

At present, he said PCPPI has 650 distribution partners and is able to serve 220,000 sari-sari stores across the country.

To support sales growth, PCPPI continues to invest in its technology-enabled distribution system to improve access to its products and allow sari-sari storeowners to benefit from the company’s promotions, pricing programs and service support.

“Technology helps us ensure that the discounts and promotions intended for sari-sari stores reach them directly,” Phyo said.

PCPPI is also investing in improving efficiencies at its manufacturing plants.

Apart from Pepsi, Mountain Dew and Sting, PCPPI’s other products are 7Up, Mirinda, Mug, Gatorade, Tropicana, Lipton Iced Tea, Milkis, Chum Churum, Saero and Premier.