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    Salty Snacks Help Push PepsiCo Profits

    Gatorade helps sales too.

    PepsiCo Inc., the world's No. 2 soft-drink maker, said second-quarter profit rose 14 percent on increased sales of snacks, such as Tostitos, and drinks like Gatorade and Lipton tea, according to a Bloomberg news report.

    Net income climbed to $1.36 billion, or 80 cents a share, from $1.19 billion, or 70 cents, a year earlier, according to the Purchase, N.Y.-based company. Sales increased 12 percent to $8.6 billion.

    The company began using sunflower oil to reduce saturated fat in Lay's and Ruffles chips and promoted new products such as baked Stacy's Pita Chips, acquired in January.

    Frito-Lay North America sales were helped by demand for lower-calorie snacks such as Sun Chips and Baked Lay's. The unit accounts for about one-third of PepsiCo revenue.

    The company also began cooking its Lay's and Ruffles chips in sunflower oil instead of cottonseed oil to reduce saturated fat. PepsiCo introduced multigrain Tostitos chips and added new flavors of Lay's Sensations potato chips such as sweet chili and sour cream, and lime with cracked black pepper. Lay's Sensations cost $2.49 for a 6-ounce package, about double the price of regular Lay's chips.

    In January, PepsiCo bought Stacy's Pita Chips, which have fewer calories than regular fried potato chips, to expand sales of lower-calorie snacks in the United States.

    PepsiCo's revenue has gained an average of 5 percent over the past five years, compared with 3.4 percent for Coca-Cola Co., the world's largest soft-drink maker.

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