April 16 (Reuters) - PepsiCo beat analysts' estimates for quarterly revenue and stuck to its annual targets on Thursday, as recent price cuts for key snack brands helped revive demand in the U.S. and continued strength in its energy drinks and prebiotic sodas.
The beverages and snacks giant said first-quarter revenue rose 8.5% to $19.44 billion, compared with estimates of $18.94 billion, according to data compiled by LSEG.
Volumes rose in the North America foods business, driven by the recent price
cuts as well as its push to highlight no artificial flavors and colors in brands such as Lay's, Doritos and Cheetos.
The company on Thursday also announced a restage of the Gatorade energy drinks brands to include new formulas with low sugar, as well as a product with a proprietary electrolyte blend to help promote longer hydration which will begin rolling out later this year.
In February, PepsiCo cut prices of brands such as Lay's and Doritos by up to 15% to help win back shelf space at retailers after consumer backlash against several quarters of hikes.
The company's key North America foods category has struggled over the last few years as budget-strained consumers traded down to cheaper brands or switched to healthier alternatives.
PepsiCo is also cutting down on the number of products it offers and shutting some production centers to simplify its North America supply chain to rein in costs.
North America foods category volume grew 2% in the reported three-month period, compared with a 1% drop in the fourth quarter.
(Reporting by Juveria Tabassum in Bengaluru; Editing by Sriraj Kalluvila)
