PepsiCo and Kraft Heinz Pivot Abroad, as US Shoppers Seek Value

Second-quarter 2026 earnings show major U.S. food companies find their fastest growth outside North America. Mondelēz, Kraft Heinz, and PepsiCo report a widening gap between cautious domestic shoppers and robust emerging market demand.

Kraft Heinz posted a 2.7% organic sales decline in North America. The company's emerging markets business grew 8.5% during the same period. PepsiCo’s Frito-Lay and Quaker division saw a 2% revenue decline in North America.

Rising living costs and private-label brands continue to squeeze U.S. consumers. These CPG leaders now rely on Latin America, India, and Southeast Asia to drive expansion.