Coke, Pepsi look out of step with U.S. consumers

Fortune

Americans spent 2.6% more in food and beverage stores in the first half of 2014, but many of the iconic brands appear to be missing out on the growth.

Coke [fortune-stock symbol=”KO”] on Tuesday reported net revenue in North America slid 1% to $10.51 billion for the first six months of the year. A day later, Pepsi [fortune-stock symbol=”PEP”] reported choppy sales for its Frito-Lay and Quaker Foods divisions in North America for the first half of 2014, while carbonated soft drinks volume declined in both the first and second quarters.

“People are consuming differently,” Pepsi Chief Executive Indra Nooyi told analysts during a conference call.

“There has been a trend toward fresh produce, fresh grocery products, more making your food at home as opposed to buying packaged foods and beverages,” she added.

The Commerce Department earlier this month reported food and beverage retail sales totaled $325.5 billion in…

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