百事 (PEP) 2019 Q3 法說會逐字稿

Good morning and welcome to PepsiCo's Third Quarter 2019 Earnings Conference Call. (Operator Instructions) Today's call is being recorded and will be archived at www.pepsico.com. It is now my pleasure to introduce Mr. Ravi Pamnani, Senior Vice President of Investor Relations. Mr. Pamnani, you may begin.

早安，歡迎參加百事公司 2019 年第三季財報電話會議。(接線員指示) 今天的電話會議將被錄音，並會存檔於 www.pepsico.com。現在很榮幸為各位介紹投資人關係資深副總裁 Ravi Pamnani 先生。Pamnani 先生，請開始。

Thank you, operator, and good morning, everyone.

謝謝，接線員，各位早安。

I'm joined this morning by PepsiCo's Chairman and CEO, Ramon Laguarta; and PepsiCo's Vice Chairman and CFO, Hugh Johnston. We'll begin with some brief prepared comments from Ramon and Hugh, and then open up the call to your questions.

今天早上與我一同出席的有百事公司董事長暨執行長 Ramon Laguarta，以及百事公司副董事長暨財務長 Hugh Johnston。我們將先由 Ramon 與 Hugh 發表簡短的事先準備發言，接著開放各位提問。

Before we begin, please take note of our cautionary statement. We will make forward-looking statements on today's call, including about our business plans and 2019 guidance. Forward-looking statements inherently involve risks and uncertainties and reflect our view as of today, and we are under no obligation to update. When discussing our results, we refer to non-GAAP measures, which exclude certain items from reported results. Please refer to today's earnings release and 10-Q available on pepsico.com for definitions and reconciliations of non-GAAP measures and additional information regarding our results, including a discussion of factors that could cause actual results to materially differ from forward-looking statements.

在開始之前，請留意我們的警示性聲明。我們在今天的電話會議中將作出前瞻性陳述，包括關於我們的業務計畫與 2019 年指引。前瞻性陳述本質上涉及風險與不確定性，並反映我們截至今日的觀點；我們沒有義務更新。在討論我們的業績時，我們會引用非 GAAP 指標，該等指標會自已報告結果中排除某些項目。請參閱今日的財報新聞稿與於 pepsico.com 提供的 10-Q，以取得非 GAAP 指標的定義與調節表，以及關於我們業績的其他資訊，包括可能導致實際結果與前瞻性陳述存在重大差異之因素的討論。

And now it's my pleasure to introduce Ramon Laguarta.

現在很榮幸為各位介紹 Ramon Laguarta。

Thank you, Ravi. Good morning, everyone.

謝謝你，Ravi。各位早安。

Before we get to our results, I would like to congratulate Ravi on his recent appointment to Senior Vice President of Investor Relations. Ravi has been with PepsiCo Investor Relations since 2012 and most of you know Ravi very well. We're very pleased to have Ravi advance to lead the IR function.

在進入業績之前，我想先恭喜 Ravi 近期獲任命為投資人關係資深副總裁。Ravi 自 2012 年起即在百事公司投資人關係團隊服務，多數各位也都非常熟悉 Ravi。我們很高興 Ravi 晉升並領導投資人關係職能。

Jamie Caulfield was recently appointed CFO of Frito-Lay North America, and we're glad that he'll continue to play a very important role in PepsiCo's finance organization and in the Frito-Lay business.

Jamie Caulfield 近期獲任命為菲多利北美（Frito-Lay North America）財務長，我們也很高興他將持續在百事公司的財務組織以及菲多利業務中扮演非常重要的角色。

Now moving on to the results. We're very pleased with our results for the third quarter and year-to-date. Our top priorities entering 2019 were to accelerate our full year rate of organic revenue growth and to position the business for sustained future growth, and we have good evidence that we've made solid progress on both fronts.

接著談到業績。我們對第三季以及年初至今的表現非常滿意。我們在 2019 年初設定的首要任務，是加速全年有機營收成長率，並讓業務具備可持續的未來成長動能；我們有充分證據顯示，這兩方面都取得了扎實進展。

In the third quarter, organic revenue increased 4.3%, lapping very strong 4.9% organic revenue growth during the third quarter of last year. And year-to-date, our organic revenue growth stands at 4.6%, an acceleration from 3.4% a year ago. So given the strength of our year-to-date performance and the solid momentum we're seeing in the business, we now expect to meet or exceed our 4% organic revenue growth target for the full year.

第三季有機營收成長 4.3%，是在去年第三季有機營收強勁成長 4.9% 的高基期之上達成。而年初至今，我們的有機營收成長為 4.6%，較一年前的 3.4% 明顯加速。因此，基於年初至今表現的強勁，以及我們在業務上看到的穩健動能，我們目前預期全年有機營收成長可達到或超過 4% 的目標。

Our strong performance in the third quarter was broad-based with organic revenue growth generated by each one of our divisions. Frito-Lay North America grew organic revenue 5.5%, driven by volume growth and net price realization. Importantly, the business is not only growing, but winning in the marketplace versus competition. In the quarter and year-to-date, Frito-Lay is growing value share in salty, savory and macro snack categories.

我們第三季的強勁表現涵蓋面廣，各事業部皆帶來有機營收成長。菲多利北美有機營收成長 5.5%，主要由銷量成長與淨價格實現所帶動。重要的是，該業務不僅在成長，也在市場上相較競爭對手取得勝利。在本季及年初至今，菲多利在鹹味、風味與大型零食（macro snack）品類的價值市占率均有所提升。

Investments we've made in innovation, marketing and consumer insights and manufacturing and go-to-market capacity are providing benefits across the brand portfolio with strong net revenue growth in our large mainstream brands like Doritos, Cheetos, Ruffles and Fritos and double-digit growth in our smaller premium brands, such as Bare and Off the Eaten Path. The breadth of our growth was also evident across every key retail channel with gains in grocery, mass, club, convenience, foodservice and e-commerce.

我們在創新、行銷與消費者洞察，以及製造與上市（go-to-market）產能方面的投資，正為整體品牌組合帶來效益：如 Doritos、Cheetos、Ruffles 與 Fritos 等大型主流品牌淨營收強勁成長；Bare 與 Off the Eaten Path 等較小的高端品牌則呈現雙位數成長。我們的成長廣度也反映在各主要零售通路皆有斬獲，包括雜貨、量販、會員制賣場、便利商店、餐飲服務與電商。

Turning to PepsiCo Beverages North America. We're very encouraged by the 3% organic revenue growth we generated in the quarter, driven by solid net price realization, the result of effective revenue management execution. Our third quarter growth accelerated sequentially from the second quarter and was on top of 2.5% organic revenue growth achieved in the third quarter of 2018.

接著談百事公司北美飲料（PepsiCo Beverages North America）。我們對本季達成 3% 的有機營收成長感到非常振奮，主要由穩健的淨價格實現所帶動，這是有效執行收益管理的成果。第三季成長較第二季呈現逐季加速，且是在 2018 年第三季已達成 2.5% 有機營收成長的基礎之上。

The business is benefiting from improved local market focus and execution driven by our streamlined field structure, increased go-to-market capacity and significant stepped up advertising support and innovation.

該業務正受益於更聚焦的在地市場策略與執行力，這得益於我們精簡的前線組織架構、提升的上市（go-to-market）產能，以及大幅加碼的廣告支持與創新。

We're especially pleased with the performance of Gatorade, which generated mid-single-digit net revenue growth and improved sequential market share performance. Innovation has played a big role in Gatorade's performance led by Gatorade Zero, which has surpassed $0.5 billion in retail sales since its launch in May of last year. And we recently launched Bolt24, a new functional beverage that supports athletes around the clock by providing advanced all-day hydration.

我們尤其滿意佳得樂（Gatorade）的表現，其淨營收達到中個位數成長，且市占表現逐季改善。創新在佳得樂的表現中扮演了重要角色，其中以 Gatorade Zero 為首；自去年 5 月上市以來，其零售銷售額已突破 5 億美元。我們近期也推出 Bolt24，這是一款新的機能性飲料，透過提供進階的全天候補水，全天支持運動員需求。

Other key parts of the business also continued to show progress. Trademark Pepsi posted its fifth consecutive quarter of net revenue growth. And bubly has continued to post very strong growth and is gaining share in the flavored sparkling water category aided by packaging and flavor innovation.

業務中的其他關鍵部分也持續展現進展。百事可樂（Trademark Pepsi）淨營收已連續第五季成長。bubly 也持續呈現非常強勁的成長，並在風味氣泡水品類中提升市占，這得益於包裝與口味創新。

Other notable highlights include double-digit net revenue growth for LIFEWTR and Propel and high single-digit net revenue growth for Pure Leaf Tea and Starbucks.

其他值得一提的亮點包括：LIFEWTR 與 Propel 淨營收雙位數成長，以及 Pure Leaf Tea 與 Starbucks 淨營收高個位數成長。

Rounding out our North America performance, Quaker Foods delivered net revenue growth in the quarter propelled by our light snacks, Aunt Jemima syrup and mix, Roni and Near East businesses. With our advertising and marketing having increased in the quarter and year-to-date, we remain focused on accelerating growth at Quaker Foods.

北美表現的最後一塊是桂格食品（Quaker Foods），本季淨營收成長主要由我們的輕食零食、Aunt Jemima 糖漿與粉料、Roni 以及 Near East 業務所帶動。隨著我們本季及年初至今的廣告與行銷投入增加，我們仍專注於加速桂格食品的成長。

Before we move on to international, I want to note the terrific work our supply chain and customer teams are doing in North America with our snacks and beverages businesses, receiving the 2 top ranking in the 2019 U.S. Advantage Survey for Food Multichannel Report. This is one of the annual surveys where retailers across multiple channels provide feedback on how suppliers are performing with respect to strategy, people, category development, marketing, supply chain, customer service and e-commerce.

在進入國際業務之前，我想特別提到我們北美零食與飲料業務的供應鏈與客戶團隊所做的出色工作：在 2019 年《美國 Advantage Survey 食品多通路報告》中，我們獲得前兩名的排名。這是年度調查之一，由跨多個通路的零售商就供應商在策略、人員、品類發展、行銷、供應鏈、客戶服務與電商等方面的表現提供回饋。

Moving beyond North America. Each of our international divisions delivered solid organic revenue growth in the third quarter despite ongoing macroeconomic volatility in certain markets. Notably, organic revenue in our developing and emerging markets increased 7%. This included double-digit growth in Mexico, Saudi Arabia, China, Turkey and Pakistan and high single-digit growth in India, Egypt, Poland and Colombia.

接著談北美以外的市場。儘管部分市場仍存在總體經濟波動，我們各個國際事業部在第三季皆交出穩健的有機營收成長。尤其值得注意的是，我們在開發中與新興市場的有機營收成長 7%。其中包括墨西哥、沙烏地阿拉伯、中國、土耳其與巴基斯坦的雙位數成長，以及印度、埃及、波蘭與哥倫比亞的高個位數成長。

Our international results reflect the benefits of our increased investments as we continue to leverage our global capabilities to drive higher per-capita consumption and improved market share, while executing in locally relevant ways. PepsiCo's performance today gives us confidence that the strategy we laid out in February to become faster, stronger and better is working. Importantly, we're balancing our investments to both drive results in the short term and position our business for sustained long-term performance.

我們的國際業績反映了加大投資所帶來的效益；我們持續運用全球能力，推動更高的人均消費並提升市占率，同時以符合各地市場的方式落地執行。百事公司的當前表現，讓我們對2月提出、旨在變得更快、更強、更好的策略正在奏效充滿信心。重要的是，我們在投資配置上取得平衡，既推動短期成果，也讓業務具備可持續的長期表現動能。

Becoming faster is about winning in the marketplace, being more consumer-centric and accelerated investment for top line growth. For example, we've increased our investment in advertising and marketing by 12% year-to-date. This investment spans across many of our big brands and geographies as well as support for innovation and emerging brands, which we will continue to develop over time.

變得更快，關鍵在於在市場上取勝、更以消費者為中心，並加速投資以帶動營收成長。例如，今年迄今我們已將廣告與行銷投資提高12%。這項投資涵蓋我們多個大型品牌與各個地區，同時也支持創新與新興品牌，我們將隨時間持續培育發展。

We're invested to increase the capacity and reach of our go-to-market systems with substantial investments in new routes, merchandising racks and coolers, and we're investing in additional manufacturing capacity to remove bottlenecks and expand growth capacity for our brands. These includes investments in new plants, new lines and added distribution infrastructure.

我們投入大量資金以提升並擴大我們的市場進入（go-to-market）系統的產能與覆蓋範圍，包括新增配送路線、陳列貨架與冷藏櫃；同時我們也投資增加製造產能，以消除瓶頸並擴大品牌的成長產能。這些包括對新工廠、新產線以及新增配送基礎設施的投資。

Becoming stronger is about transforming our capabilities, cost and culture by operating as One PepsiCo, leveraging technology and winning globally and locally. For example, we're making significant investments in capabilities like data analytics and systems to digitalize the company to achieve precision at scale, which is to execute in every store with precisely the right products at the right price. To do so, we're capturing and analyzing more granular consumer-level data to build true consumer intimacy, that is understanding the consumer in a much more personal way, to move from thinking of consumers in groups of millions, to understand in-depth the household or individual level by leveraging robust data from multiple sources. Using this information, we're increasingly structuring personalized communication and satisfying demand at the store level.

變得更強，關鍵在於以「一個百事公司（One PepsiCo）」的方式營運，運用科技並在全球與在地市場取勝，從而轉型我們的能力、成本與文化。例如，我們正大幅投資於資料分析等能力與系統，推動公司數位化，以在規模化下達成精準執行——也就是在每一家門市，以精準的正確產品與正確價格進行執行。為此，我們正在擷取並分析更細緻的消費者層級資料，以建立真正的消費者親密度，也就是以更個人化的方式理解消費者；從以數百萬人為群體來思考消費者，轉為藉由多來源的強健資料，深入理解到家庭或個人層級。運用這些資訊，我們正日益建構個人化溝通，並在門市層級滿足需求。

We also continue to strengthen our omnichannel capabilities, particularly in e-commerce where our retail sales are expected to be nearly $2 billion in 2019. We're building on this success by investing further in our go-to-market and supply chain systems to capitalize on more opportunities in today's dynamic retail environment. And we're elevating our talent and fostering a culture where employees act like owners with a greater sense of empowerment and accountability. To fund these investments in capability and culture, we're driving efficiency throughout the enterprise, and we remain on track to deliver our target of $1 billion in annual productivity savings in 2019.

我們也持續強化全通路能力，尤其是在電商領域；我們預期2019年電商零售銷售額將接近20億美元。我們在此成功基礎上，進一步投資於市場進入與供應鏈系統，以把握當今動態零售環境中的更多機會。同時，我們提升人才並培養一種文化，讓員工以主人翁心態行事，具備更強的賦權感與責任感。為了支持這些在能力與文化上的投資，我們正推動全企業的效率提升，並仍按計畫在2019年達成年度生產力節省10億美元的目標。

And finally, becoming better reflects our aspiration to integrate purpose into our business strategy and brands. With this in mind, we're embracing a set of focused initiatives to help build a more sustainable food system, and I'd like to spend a little extra time this morning to share with you what we're focusing on.

最後，變得更好，反映了我們將使命（purpose）融入商業策略與品牌的願景。基於此，我們正推動一系列聚焦的倡議，以協助建立更永續的食品系統；今天早上我想多花一點時間，與各位分享我們的重點方向。

First is advancing environmental, social and economic benefits to farmers and communities by promoting more sustainable agriculture. Through our sustainable farming program in 2018, we achieved a key milestone with over half our farmer-sourced agricultural raw materials, like potatoes, whole corn, oranges and oats verified as sustainably sourced. Our aim is to reach 100% by the end of 2020.

第一，是透過推動更永續的農業，為農民與社區帶來環境、社會與經濟效益。透過我們2018年的永續農業計畫，我們達成一項關鍵里程碑：超過一半由農戶供應的農業原料（如馬鈴薯、整粒玉米、柳橙與燕麥）已驗證為永續來源。我們的目標是在2020年底前達到100%。

Second is improving water stewardship across our businesses and in the regions where we operate. We're striving to improve water use efficiency and aiming to replenish 100% of the water we consume for manufacturing in high water risk areas by 2025.

第二，是在我們各項業務以及營運所在區域提升水資源管理。我們致力於提升用水效率，並以在2025年前於高水風險地區補充（回補）我們製造所消耗用水的100%為目標。

Third is delivering our vision of a world where plastic packaging need never become waste. We recently unveiled a new target to reduce 35% of virgin plastic content across our beverage brands by 2025, driven by increased use of recycled content and alternative packaging materials.

第三，是實現我們的願景：塑膠包裝在世界上不必成為廢棄物。我們近期公布一項新目標：到2025年，透過提高再生料使用與替代包材，將我們飲料品牌的原生塑膠含量降低35%。

Fourth is improving choices across our portfolio by continuing to reduce added sugars, sodium and saturated fats in many of our products. We currently offer several choices that address this objective, including Pepsi Zero Sugar, Lay's Baked, Kurkure Multigrain, Tropicana Whole Fruit and Sunbites Veggie Harvest. And we will continue to expand our offerings of more nutritional options.

第四，是透過持續降低多項產品中的添加糖、鈉與飽和脂肪，改善我們產品組合中的選擇。目前我們已提供多種符合此目標的選擇，包括 Pepsi Zero Sugar、Lay's Baked、Kurkure Multigrain、Tropicana Whole Fruit 與 Sunbites Veggie Harvest。我們也將持續擴大更具營養的產品選項。

Our fifth focus area is mitigating the impact of climate change by curbing greenhouse gas emissions across all our value chain with an ambitious goal to reduce absolute greenhouse gas emissions across our value chain by 20% by 2030.

第五個重點領域，是透過抑制整體價值鏈的溫室氣體排放來減緩氣候變遷影響；我們設定一項具雄心的目標：到2030年，將我們價值鏈的絕對溫室氣體排放量降低20%。

And lastly, we're working to support our associates and society by advancing respect for human rights, promoting diversity and inclusion in our workplace and increasing the earnings potential of women in our communities. This is a journey with a lot of work ahead of us, but we want all of our stakeholders to know that advancing to sustainability and being a more purposeful company will play an essential role in PepsiCo's future. For more details on how we're integrating sustainability into our business and our brands, we encourage you to read our most recent sustainability report.

最後，我們致力於透過推動人權尊重、在職場促進多元與共融，以及提升社區女性的收入潛力，來支持我們的員工與社會。這是一段仍有大量工作要做的旅程，但我們希望所有利害關係人都了解：推進永續發展、成為更具使命導向的公司，將在百事公司的未來扮演關鍵角色。如需了解我們如何將永續發展融入業務與品牌的更多細節，建議各位閱讀我們最新的永續發展報告。

And now I'll hand it off to Hugh.

接下來我把時間交給Hugh。

Thank you, Ramon, and good morning, everyone. As Ramon noted earlier, we now expect organic revenue growth to meet or exceed our previous objective of 4% growth for the full year. We continue to expect our core constant currency earnings per share to decline approximately 1% as we plan to continue to invest in our business for the long term. All other guidance measures provided remain unchanged, including a core effective tax rate of approximately 21%, free cash flow of approximately $5 billion and total cash returned to shareholders of approximately $8 billion, comprised of dividends of approximately $5 billion and share repurchases of approximately $3 billion.

謝謝你，Ramon，各位早安。如Ramon先前所提到，我們目前預期全年有機營收成長將達到或超過先前設定的4%成長目標。由於我們計畫持續為長期投入業務，我們仍預期核心固定匯率每股盈餘將約下降1%。其他所有已提供的指引維持不變，包括核心有效稅率約21%、自由現金流約50億美元，以及回饋股東的現金總額約80億美元，其中包含約50億美元股利與約30億美元庫藏股回購。

With respect to the fourth quarter, please keep the following in mind as you build out your models. First, our asset division will be lapping gains from a refranchising and a strategic asset sale; and second, the higher investments in the business will continue, and you will see this again reflected in both our operating margin performance and core EPS.

就第四季而言，請在建立模型時留意以下幾點。第一，我們的資產部門將面臨去年同期因再特許經營（refranchising）與策略性資產出售所帶來的收益基期；第二，對業務的較高投資將持續進行，您也會再次看到這反映在我們的營業利益率表現與核心EPS上。

Now we'll open it up to questions. Operator, we'll take the first question.

現在我們開放提問。接線員，請安排第一個問題。

(Operator Instructions) Our first question comes from the line of Dara Mohsenian of Morgan Stanley.

(接線員指示) 我們的第一個問題來自摩根士丹利（Morgan Stanley）的Dara Mohsenian。

So it looks like in Frito-Lay North America, organic sales growth is probably on track for 5% or even better this full year, based on the year-to-date trends. That would be the best growth we've seen in a decade, so I was just hoping if you could give us a bit of postmortem on what's driven the acceleration year-to-date, how much is improved category growth versus building Pepsi market share momentum? And given the acceleration over the last year appears to be more driven by pricing, how sustainable is the momentum as you cycle higher pricing in Q4 and beyond? And then just last with the capacity additions and supply chain work you're doing on the Frito-Lay side in North America this year, should that have an appreciable impact on volume or mix as we look out to 2020?

看起來在北美Frito-Lay方面，根據今年迄今的趨勢，全年有機銷售成長很可能可達5%甚至更好。那將是我們十年來見到的最佳成長，因此我想請你們稍微回顧一下：今年迄今加速成長的驅動因素是什麼？其中有多少來自品類成長改善，相較於百事在市占率動能上的提升？另外，鑑於過去一年加速成長似乎更多由定價所驅動，當你們在第四季及之後面臨較高定價的比較基期時，這股動能有多可持續？最後，關於你們今年在北美Frito-Lay端所進行的產能擴增與供應鏈工作，展望2020年，這是否會對銷量或產品組合帶來顯著影響？

Thank you, Dara. This one question, good question. The performance of Frito is, I think, it's very holistic, right, what's driving the performance. And it's I guess a combination of increased A&M, increased capacity. We put more routes and we made some choices around what are the priority brands and nonpriority brands, and that's driving the overall business performance. We're gaining share, but the category is also very healthy. Of course, we're a big part of the category, so we're driving the attractiveness of the category as well with our increased advertising, very good innovation across the big brands and the small brands. So I think it's a good performance both in terms of maintaining the attractiveness of the category, making sure our customers continue to see growth driven by us in this category, which is critical for our customers. And then we're gaining share because we have, I guess, a very broad portfolio that plays across all the different consumer segments, and the team is doing a fantastic job in terms of building the brand and developing the innovation. So a holistic, a holistic set of reasons why this business is continuing to perform at a very high level compared to other consumer packaged goods in the United States.

謝謝你，Dara。這是一個問題，很好的問題。我認為 Frito 的表現非常全面，對吧，驅動表現的因素是什麼。我想這是提高 A&M 投入、提升產能的綜合結果。我們增加了更多路線，並且在優先品牌與非優先品牌上做了一些取捨，這些都在推動整體業務表現。我們正在提升市占，同時品類本身也非常健康。當然，我們是該品類的重要組成部分，因此我們也透過增加廣告投放、在大品牌與小品牌上推出非常好的創新，來提升品類的吸引力。所以我認為這是一個很好的表現：一方面維持品類的吸引力，確保我們的客戶持續看到由我們在這個品類帶動的成長，這對客戶至關重要。另一方面，我們之所以能提升市占，是因為我們擁有非常廣泛的產品組合，覆蓋所有不同的消費者族群，而團隊在品牌建設與創新開發方面做得非常出色。因此，這是一套全面、全面的原因，讓這項業務相較於美國其他消費性包裝商品，能持續維持在非常高的表現水準。

Your next question comes from the line of Bryan Spillane of Bank of America Merrill Lynch.

下一個問題來自美國銀行美林（Bank of America Merrill Lynch）的 Bryan Spillane。

I had a question, I guess, around NAB. And I think as you started this year, the investment was in a few different areas, one being marketing and product, another being in routes, and then also in packaging, like getting more mini cans into the market, I guess. And I guess specific to CSDs, just where do you feel you are in the process of having all those investments in place and the effect of those in the marketplace, I guess, currently? And like how much more is there to go in terms of having that drive some improvement in market share as we go into next year?

我有一個問題，我想是關於 NAB。我認為在今年一開始，你們的投資分布在幾個不同領域：一個是行銷與產品，另一個是在路線，另外也在包裝上，例如把更多迷你罐推向市場之類的。我想特別針對 CSDs，你們覺得目前在把這些投資全部到位、以及這些投資在市場上產生效果的進程中，處於什麼階段？以及在進入明年時，還有多少空間可以讓這些投資帶動市占的改善？

Yes. The success of our beverage business is in continuing to drive the -- the [steel] portfolio, the noncarbonated portfolio, so we need to continue to do a great job in our teas, our waters, our teas, our sports drinks and then obviously improve the performance in CSDs. We're seeing progress across all those multiple objectives, which is quite complex to manage, right? So we're seeing, as we continue to gain share in what are the critical strategic categories for us and doing very well with some of our critical brands, like Pepsi, as we discussed last quarter, we still have a pending matter in Mountain Dew.

是的。我們飲料業務成功的關鍵，在於持續推動——這個——[steel] 產品組合、非碳酸產品組合，所以我們需要在茶飲、水、茶飲、運動飲料上持續做得很好，然後當然也要改善 CSDs 的表現。我們看到在這些多重目標上都有進展，而這其實相當複雜、難以管理，對吧？因此，我們看到，隨著我們在對我們而言關鍵的策略性品類中持續提升市占，並且在一些關鍵品牌上表現非常好，例如我們上季討論過的 Pepsi，我們在 Mountain Dew 方面仍有一個待解決的事項。

Mountain Dew is improving, but it's not to the levels that we would like to see. So that's the focus of the team for the next few quarters, make sure that we get Dew back to what we think is a more sustainable performance. But we're happy with the growth we're having in all the other categories. We're happy with the way Pepsi is performing.

Mountain Dew 正在改善，但還沒有達到我們希望看到的水準。所以這就是團隊接下來幾個季度的重點：確保我們讓 Dew 回到我們認為更可持續的表現狀態。但我們對其他所有品類的成長感到滿意。我們也對 Pepsi 的表現方式感到滿意。

And as I said on my remarks, we're very happy with Gatorade. And the performance of Gatorade in the sports drink category this quarter, reflects both the additional investment we've made on core Gatorade, the great innovation behind Zero, which is really a very well-received incremental innovation to the category.

而且如同我在發言中提到的，我們對 Gatorade 非常滿意。本季度 Gatorade 在運動飲料品類的表現，反映了我們對核心 Gatorade 所做的額外投資，以及 Zero 背後的出色創新；這確實是一項非常受歡迎、為品類帶來增量的創新。

And now we're starting to make some additional investments in that category with Bolt24. We're testing and learning, and there will be a bigger rollout of that brand next year. So overall, we feel good. Again, Mountain Dew continues to be the pending matter, but we feel good about the ideas we have, the resources we have allocated to this brand and how the teams are thinking about Mountain Dew for the future.

而現在我們也開始在該品類上，透過 Bolt24 進行一些額外投資。我們在測試與學習，明年這個品牌會有更大規模的推廣。所以整體而言，我們感覺良好。同樣地，Mountain Dew 仍然是待解決的事項，但我們對我們的想法、分配給這個品牌的資源，以及團隊對 Mountain Dew 未來的思考方式，都感到有信心。

Your next question comes from the line of Ali Dibadj of Sanford Bernstein.

下一個問題來自 Sanford Bernstein 的 Ali Dibadj。

So I have 2 questions. One is on CapEx, specifically. Clearly, you signaled that going up. Want to better understand please the CapEx investment. Obviously, in FLNA, you mentioned increased capacity. But in PBNA in particular and where you are in rolling that out because if it's things like your competitor is doing in North America, like in-store displays, like coolers like more efficient route, like more efficient vehicle, there is a lag before you get that benefit. So I want to get a sense of whether you expect that benefit on the CapEx, again particularly in PBNA, to start coming through going forward.

我有兩個問題。第一個是關於資本支出（CapEx），具體來說。很明顯，你們已經釋出訊號表示會增加。我想更清楚了解 CapEx 投資。顯然，在 FLNA 方面你提到提升產能。但特別是在 PBNA，你們在推動落地的進度如何？因為如果是像你們競爭對手在北美做的那些事情，例如店內陳列、冷藏櫃、更有效率的路線、更有效率的車輛，那在你獲得效益之前會有一段滯後期。所以我想了解，你們是否預期這些 CapEx 的效益——尤其是在 PBNA——會在未來開始逐步顯現。

And then the second question is around Latin America, your Latin America Foods. I'm sure with Jamie going there as CFO, I won't have to ask about it again. But it looks like it slowed a little bit, both on the top line and the bottom line. If you can add any color there, that would be helpful.

第二個問題是關於拉丁美洲，你們的拉丁美洲食品業務。我相信 Jamie 去那邊擔任 CFO 之後，我就不用再問了。但看起來無論是營收端還是獲利端，都稍微放緩了一點。如果你能補充一些背景說明，會很有幫助。

Sure. Let's start with Latin America. Now Jamie is going to Frito-Lay North America, Latin America is a separate division, but regardless, the Latin America performance continues to be very strong. Mexico is growing double digits. There was a -- we have lapped in our Brazil business last year. We had the drivers' strike, remember, in Brazil, then we had a very strong June. We're lapping that June this year. The business in Brazil is back to a very good performance in the back of the quarter and into the Q4, so we don't see any deceleration. The biggest challenge obviously in Latin America is Argentina. You guys read the news every day. It's a very volatile environment with the currency devaluing and we're having to adjust in our affordability levels with the consumer. So that's the biggest challenge in Latin America, but it's not meaningful enough for the overall Latin America performance. That's there.

當然。我們先從拉丁美洲開始。現在 Jamie 會去 Frito-Lay North America，拉丁美洲是另一個獨立事業部，但不管怎樣，拉丁美洲的表現仍然非常強勁。墨西哥呈現雙位數成長。我們在巴西業務方面——去年有一個基期因素。我們去年在巴西遇到司機罷工，還記得嗎？接著我們在 6 月表現非常強。今年我們正在對比去年那個 6 月的高基期。巴西業務在本季度後段以及進入第四季後，已回到非常好的表現，所以我們沒有看到任何減速。拉丁美洲最大的挑戰顯然是阿根廷。你們每天都在看新聞。那是一個非常波動的環境，貨幣貶值，我們必須在消費者可負擔性水準上做調整。所以這是拉丁美洲最大的挑戰，但對整體拉丁美洲表現而言影響不大。就是這樣。

In terms of NAB, as you said, we're -- and again, it's the same answer as with Frito. We're trying to make investment in a very holistic way so that we drive performance with no bottlenecks. So we're investing in the brands both in the large brands, but also in the smaller brands in PBNA. We're investing in routes. We're investing in coolers and marketplace, cooling infrastructure, which drives our business and drives our profitability. And yes, we're seeing the performance. As you see, it's a -- 3% is a very good performance for NAB. We think that we still have opportunities to do better than that, and we'll continue to fight for that, for that performance. Again, it's holistic CapEx investments across all the levers of growth that will make us successful long term.

至於 NAB，如你所說，我們——而且同樣，這跟 Frito 的答案一樣。我們試圖以非常全面的方式進行投資，讓我們推動表現時不會出現瓶頸。因此，我們在 PBNA 的品牌上投資，既包括大型品牌，也包括較小的品牌。我們投資在路線上。我們投資在冷藏櫃與市場端的冷鏈基礎設施上，這能推動我們的業務並提升獲利能力。而且是的，我們正在看到表現。如你所見，3% 對 NAB 來說是非常好的表現。我們認為仍有機會做得更好，我們會持續努力爭取那樣的表現。同樣地，這是一種跨越所有成長槓桿的全面性 CapEx 投資，將使我們長期成功。

Your next question comes from the line of Vivien Azer of Cowen.

您的下一個問題來自 Cowen 的 Vivien Azer。

So I wanted to follow up, please, on the commentary that you just offered on NAB and continued improvement. With the CSD volumes down 3%, I mean I think from a fundamental perspective, it is a structurally challenged category, so what do you think is reasonable from a volume perspective? What does success look like on the CSD component of the segment?

我想請您延伸追問一下，關於您剛才對 NAB 以及持續改善所做的評論。在 CSD 銷量下滑 3% 的情況下，我的意思是，從基本面角度來看，這是一個結構性面臨挑戰的品類，那麼您認為從銷量角度來看，什麼是合理的？在該事業部門中，CSD 這個組成部分的成功應該是什麼樣子？

Yes. Great. Listen, as we discussed last quarter, I think, there is, I think, a structural change in consumer demand in this category. It's moving to a smaller format, a different format that drive a different volume net revenue construction here. So the net revenue of CSDs is up. Part of that is pricing, but a lot of that is mix. And it's mix driven by obviously us becoming, I would say, more insightful in what are the different occasions that consumers are buying our products and offering the best pack for those occasions. But also I think there is a fundamental change in demand where the consumers are going for smaller packs, and that's driving a change in the price per liter of the category and price per unit. So that is the -- and relating to that, to what Ali asked before, that drives some of the CapEx as well, so we're investing capacity for those smaller formats and we're seeing the return in higher pricing.

是的。很好。聽著，正如我們上季討論的，我認為這個品類的消費者需求正在發生結構性變化。它正轉向更小的規格、不同的形式，這會帶來不同的銷量與淨營收結構。因此，CSD 的淨營收是上升的。其中一部分來自定價，但很大一部分來自組合。而這個組合的變化，顯然是因為我們在洞察消費者購買我們產品的不同情境方面變得更有洞見，並為這些情境提供最合適的包裝規格。但我也認為需求本身出現了根本性的改變，消費者正在選擇更小包裝，這推動了該品類每公升價格與每單位價格的變化。所以這就是——也與此相關，回到 Ali 先前問的問題，這也會推動部分資本支出（CapEx），因此我們正在投資於這些較小規格的產能，並且看到以更高定價帶來的回報。

Your next question comes from the line of Andrea Teixeira of JPMorgan.

您的下一個問題來自 JPMorgan 的 Andrea Teixeira。

Congrats to Jamie and Ravi on the new assignment. So very top down on international and in particular because of your experience, Ramon, I was thinking like the international growth has been accelerating and I was hoping to hear how do you feel about both beverages and snacks consumption going forward given the macro volatility? And also if you can, I think we haven't heard about Mountain Dew on the beverage side, so if you can kind of explain if investments might be going to that brand as well going forward.

恭喜 Jamie 和 Ravi 接下新的任務。我想從更宏觀的角度談國際業務，特別是基於您過往的經驗，Ramon，我在想國際成長正在加速，我希望聽聽您如何看待在宏觀波動下，未來飲料與零食的消費走勢？另外如果可以的話，我覺得我們在飲料端還沒怎麼聽到 Mountain Dew 的情況，所以也請您說明一下，未來投資是否也會投入到這個品牌上。

Okay. Let me start with international. It is a volatile macroeconomic and political situation, and more and more geopolitical than macroeconomic at this point. And if you go -- our larger businesses are performing very well. I mean like Mexico is growing double digit. Russia is having a very good year. We see high growth double digit in China. Very high growth in India. Even Saudi Arabia was a challenge for us, it's going back to double digit. So we're seeing -- from the demand point of view, we're seeing a very still very strong demand to our -- for our categories. Part of that is we're gaining share in many of these markets. Part of that is still the categories are very -- not very developed and consumers continue to come to our categories as we offer more innovative products and more affordable products.

好的。我先從國際業務開始。目前宏觀經濟與政治情勢都很波動，而且此刻越來越偏向地緣政治因素，而不只是宏觀經濟。如果你看——我們較大的業務表現非常好。例如墨西哥是雙位數成長。俄羅斯今年表現也非常好。我們在中國看到高雙位數成長。印度的成長非常高。甚至沙烏地阿拉伯過去對我們是個挑戰，現在也回到雙位數成長。所以我們看到——從需求面來看，我們的品類需求仍然非常強勁。其中一部分是我們在許多市場提升了市占。另一部分是這些品類仍然——還不算非常成熟，隨著我們提供更多創新產品與更可負擔的產品，消費者持續進入我們的品類。

So far we're not seeing a reduction in demand for our categories on a global level. There are some markets where we've seen the consumers acting a little bit different. Like, for example, the U.K. is one where we're seeing the consumers a little bit -- a little more defensive as with all the political uncertainty there. We're seeing obviously Argentina, as I said. Venezuela, we've been there for many years now. But we don't see, Andrea, a fundamental change of demand, let's say, in the last few months versus the beginning of the year or last year. We're seeing the categories still growing very healthy and the demand coming to our categories in good, I would say, good positive levels, right. So that's there.

到目前為止，我們在全球層面並未看到我們品類的需求出現下滑。有些市場我們看到消費者行為稍有不同。例如英國就是一個，我們看到在那裡因為政治不確定性，消費者變得稍微——更偏防禦性一些。我們也看到阿根廷，正如我所說。委內瑞拉我們已經在那裡很多年了。但 Andrea，我們沒有看到需求在根本上發生變化，比如說，過去幾個月相較於年初或去年。我們看到這些品類仍然非常健康地成長，需求以良好、我會說是良好的正向水準進入我們的品類，對吧。所以就是這樣。

Mountain Dew, I said, the -- it is our pending subject. It is a focus of the organization, and we're -- I think the brand is well-resourced at this point and it's going to be down to having the right ideas and executing the right -- the ideas with quality. And as we're becoming a better execution company, I think that will happen. As we talked, it is a brand that is in the intersection of CSDs and energy, and it's not as easier problem to solve in terms of maintaining the relevance and the consumer high awareness for this brand compared to some of the other new trends that are happening in energy. So that's work for us to do. But I would say the brand is flat at this point, and we'll continue to invest to make it a positive brand for us in the coming quarters.

至於 Mountain Dew，我說過——這是我們尚待解決的課題。它是組織的重點，我們——我認為目前這個品牌的資源配置是充足的，接下來就取決於是否能提出正確的想法，並以高品質把這些想法執行到位。而隨著我們成為一家執行力更強的公司，我認為這會發生。如我們所談，這個品牌位於 CSD 與能量飲料的交會點，因此在維持品牌相關性與消費者高認知度方面，與能量飲料領域正在發生的一些新趨勢相比，這不是一個那麼容易解決的問題。所以這是我們需要做的功課。但我會說目前這個品牌表現持平，我們會持續投資，讓它在未來幾季成為對我們有正向貢獻的品牌。

Your next question comes from the line of Caroline Levy of Macquarie.

您的下一個問題來自 Macquarie 的 Caroline Levy。

Congrats, Ravi, and if Jamie is in the room too listening. I was wondering if you could elaborate a little bit on your total stream and the opportunity there. I mean just given, I think, priority #1 for many, many companies now seems to be reducing plastic. And what is the cost of recycling investments that you see -- you, as a corporate, having to make alongside, perhaps, states and governments? And then what role does SodaStream play, particularly in the U.S. just because it hasn't really taken off in a way it has in parts of Europe?

恭喜你，Ravi，如果 Jamie 也在現場聽的話也一併恭喜。我想請您再多談一點 SodaStream 以及那裡的機會。我的意思是，考量到我認為現在對很多很多公司而言，優先事項 #1 似乎都是減少塑膠使用。那麼在回收相關投資的成本方面，您看到——作為企業——需要與各州與政府一起投入多少？另外 SodaStream 扮演什麼角色，特別是在美國，因為它似乎還沒有像在歐洲部分地區那樣真正起飛？

Yes. It's a good -- great question and it's -- we made a strategic bet, right, when we decided to go and buy SodaStream. We saw this potential consumer change towards nonplastic beverages in part of the world. And also we saw that SodaStream has the opportunity for consumers to personalize their drinks or add a personal touch to their drinks. So the good news is that SodaStream is doing very well, and it's doing better than what we had in our business case for M&A, so it continues to be very successful across multiple parts of the world.

是的。這是個好——很好的問題，而且——當我們決定收購 SodaStream 時，我們做了一個策略性的押注，對吧。我們看到在世界某些地區，消費者可能轉向非塑膠飲料的趨勢。同時我們也看到，SodaStream 讓消費者有機會客製化他們的飲品，或為飲品加入個人化的元素。好消息是 SodaStream 表現非常好，而且比我們在併購商業案例（business case）中的預期更好，因此它在全球多個地區持續非常成功。

So obviously, Western Europe, where it started, it's very, very strong. Germany, France, Holland, Central Northern Europe as well. It is strong in Japan. It is very strong in Canada. And there are some opportunities in the U.S., which we're making some organizational changes. We're upgrading talent. We're leveraging obviously the customer relationships that we have with our PepsiCo business to open some new relationships, and we are innovating a lot. You will see some, I think, some transformational programs for SodaStream next year in the U.S. that I think will -- I'm very optimistic about the step-change in the household penetration that will give us.

很明顯地，在它起家的西歐市場非常、非常強勁。德國、法國、荷蘭，以及中北歐也都很強。在日本也很強。在加拿大非常強。而在美國也存在一些機會，我們正在做一些組織調整。我們正在升級人才。我們也正利用百事公司（PepsiCo）業務既有的客戶關係來開拓一些新的合作關係，並且我們正在大量創新。明年你會在美國看到一些我認為對 SodaStream 具有變革性的計畫，我對此非常樂觀，這將——我認為——在家庭滲透率上帶來躍升式的提升。

But overall, this is a huge strategic opportunity for us as a company. We're realizing, I think, part of that opportunity. We're adding some of the knowledge from PepsiCo to SodaStream, and that will make that company better in flavor, innovation, in design of the machines, in some technologies, direct-to-consumer. So I think SodaStream will be a better company as part of PepsiCo, and PepsiCo will be a better company by having SodaStream and being able to address that potential consumer opportunity. So good news on the financial short term delivery and I think very good news coming for us in the future with this new business.

但整體而言，這對我們公司來說是一個巨大的策略性機會。我認為我們正在實現其中一部分機會。我們正把百事公司的部分知識導入 SodaStream，這將使該公司在風味、創新、機器設計、某些技術以及直達消費者（DTC）等方面變得更好。因此，我認為 SodaStream 成為百事公司的一部分後會是一家更好的公司；而百事公司因擁有 SodaStream、並能夠切入那個潛在的消費者機會，也會成為一家更好的公司。所以，短期財務交付表現是好消息，而我認為未來隨著這項新業務的推進，對我們而言也會有非常好的消息。

Your next question comes from the line of Bonnie Herzog of Wells Fargo.

下一個問題來自富國銀行（Wells Fargo）的 Bonnie Herzog。

I did want to ask on gross margin, which has really been quite impressive this year. So kind of wondering how we should think about the margins through the end of the year, especially given the tough comp you're lapping in Q4? And then could you highlight some of the key puts and takes for margins? Especially as we look into next year, you're definitely going to be facing some tough gross margin compares in 2020, so any color on how you're looking to lap those, particularly if FX headwinds mounts, that would be helpful.

我想就毛利率提問，今年的毛利率表現確實相當亮眼。因此想請教，我們應該如何看待今年年底前的毛利率走勢，特別是考量到你們在第四季將面臨較艱難的比較基期？另外，你們能否點出影響毛利率的幾個關鍵利多與利空因素？尤其展望明年，你們在 2020 年肯定會面臨一些艱難的毛利率比較基期；若外匯逆風加劇，也請提供一些看法，這會很有幫助。

Bonnie, it's Hugh. Yes. Couple of comments on gross margin. Number one, obviously we've gotten very good price realization across the company this year. As we get into Q4, we will start to lap some of the pricing that we took in Q4 of last year, so we'll get less of a pricing benefit to gross margins.

Bonnie，我是 Hugh。是的。關於毛利率有幾點說明。第一，顯然今年我們在全公司範圍內都取得了非常好的價格實現。進入第四季後，我們將開始與去年第四季所採取的部分漲價措施形成比較基期，因此價格對毛利率的助益會變少。

Regarding commodities, nothing notable there. As you know, we have our forward-buying program on commodities, so we have good line of sight into what we will see there, and no notable change versus year-to-date. And then last, obviously our productivity has been quite strong this year. We'll continue to see that in Q4. So gross margins will certainly continue to be positive as we move forward. But do note that the pricing benefit to our gross margins will be less as we enter the quarter.

至於大宗商品，沒有什麼值得特別注意的。如你所知，我們對大宗商品有遠期採購計畫，因此對那部分的走勢有很好的可視性，與年初至今相比沒有顯著變化。最後，顯然今年我們的生產力提升相當強勁。我們在第四季也會持續看到這點。因此，隨著我們往前走，毛利率當然仍會維持正向。但請注意，隨著進入本季，價格對毛利率的助益會較少。

Regarding 2020 and forward, I think it's best if we talk about that holistically as a part of our 2020 guidance, which we'll get to in February.

至於 2020 年及之後，我認為最好在我們 2020 年的整體財測指引中一併說明，我們會在二月談到。

Your next question comes from the line of Rob Ottenstein of Evercore.

下一個問題來自 Evercore 的 Rob Ottenstein。

Ramon, you touched on a little bit in terms of consumers moving to smaller packs for CSDs, but I was wondering if you could kind of step back and give us your assessment of where the U.S. consumer is on health and wellness-related issues, sugar, artificial sweeteners and what your company strategy is on that. And one of the reasons why I'm asking it is Gatorade Zero doing really well, great product and then -- but then you come out with the Bolt24, and if I recollect, quite a lot of sugar in that, which was a little bit surprising to me. So I'm just trying to understand where you see the consumer and how you're responding to it.

Ramon，你提到消費者在碳酸飲料（CSD）方面轉向較小包裝的一些情況，但我想請你退一步，給我們你對美國消費者在健康與福祉相關議題（糖、人工甜味劑）上的看法，以及你們公司的策略是什麼。我之所以這樣問，是因為 Gatorade Zero 表現非常好，是很棒的產品；但接著你們推出 Bolt24，而如果我沒記錯，那款產品含糖量相當高，這讓我有點意外。所以我只是想了解，你們如何看待消費者的走向，以及你們如何因應。

Right. Good question. Great question, and it's critical to our strategy, right? So when we talked about our strategy in February, we said we're going to play against each one of the vectors of demand in our categories and not only health and wellness, but every vector of demand. So what we're seeing the consumer, and it's not only snacks, but beverages, the 2 categories, we're seeing the consumer going after functionality, going after health and wellness, but also going after indulgence and going to many spaces in the convenience, association, so a lot of different vectors that drive consumer preference and choices.

好的。好問題。非常好的問題，而且這對我們的策略至關重要，對吧？因此，當我們在二月談到策略時，我們說過我們會針對各品類的每一個需求向量（vectors of demand）來布局，而不只是健康與福祉，而是每一個需求向量。所以我們看到的消費者趨勢，不僅在零食，也在飲料這兩大類別：消費者追求功能性、追求健康與福祉，但同時也追求享受（indulgence），並且在便利性、情境連結等許多面向上移動；有很多不同的需求向量在驅動消費者偏好與選擇。

And then obviously, a very important vector which is price, right? So premium value, I mentioned, being a very important segmentation as consumers make choices. So the decision we made is that we're going to give the consumer maximum choice, again, to each one of the vectors and we're trying to capture demand from all of the different occasions throughout the day. That's the only way we're going to keep our share continue to grow and we're going to be successful in our category. So that's what we're seeing.

另外，顯然還有一個非常重要的向量就是價格，對吧？我提到過，高端價值（premium value）是消費者做選擇時非常重要的分眾。因此我們做出的決策是：我們要在每一個向量上都提供消費者最大的選擇，同樣地，我們也試圖在一天中所有不同的消費時刻捕捉需求。這是我們能讓市占持續成長、並在品類中取得成功的唯一方式。所以這就是我們所看到的情況。

The trend towards small packs is not only in beverages, it is also in snacks. And actually, it is been going on in snacks for several years as well where our variety packs in Frito-Lay are growing very fast. And then internationally, by far, our smaller packs are the #1 packaging of choice for consumers.

走向小包裝的趨勢不只在飲料，也在零食。事實上，在零食領域這個趨勢也已經持續了好幾年，我們 Frito-Lay 的綜合包（variety packs）成長非常快。而在國際市場，小包裝迄今為止是消費者的第一選擇包裝形式。

And to the point on Gatorade, yes, Zero is great. Zero has been a great addition to the category, to the brand. It is capturing consumers that I think who were very heavy users of Gatorade and had abandoned the brand because of the calories. So it's been a great addition. It's putting the brand back as a relevant brand to many more consumers as they exercise or do other activities. And it's expanding the brand, I think, structurally. And it will give us, I think, a lot of great moments going forward.

至於你提到的 Gatorade，是的，Zero 很棒。Zero 對品類、對品牌而言都是很好的新增產品。它正在吸引我認為原本是 Gatorade 的重度使用者、但因為熱量而離開品牌的消費者回流。所以這是一個很好的補強。它讓品牌在更多消費者運動或從事其他活動時，再次成為相關且有吸引力的品牌。我認為它也在結構性地擴大品牌。而且我想它會在未來帶給我們很多很棒的成長時刻。

Bolt24 is a very low-calorie product and is not -- no added sugars and it's all the sugar that is in the -- basically the watermelon water that is kind of the base of the product. Obviously, we reserve the right to have a Zero Bolt24 going forward. I think at this point, the brand is positioned for athletes of the field, and you will see innovation around functionality, functionality more than sugar, no sugar. But very, very low sugar levels, actually much lower than competitors in that space for sure. And I think it's the right way to launch the brand. It is below 100 calories per bottle, so it's 80 calories. So it's very, very -- a very healthy balance between taste, functionality and sugar levels.

Bolt24 是一款非常低熱量的產品，且不含添加糖；其中的糖分基本上都來自作為產品基底的西瓜水。當然，我們保留未來推出 Zero 版 Bolt24 的權利。我認為目前這個品牌定位於場上運動員（athletes of the field），你會看到圍繞功能性的創新——更偏向功能性，而不是糖或無糖。但它的含糖量其實非常、非常低，確實也遠低於該領域的競品。我認為這是推出品牌的正確方式。每瓶低於 100 卡路里，為 80 卡路里。因此在口味、功能性與含糖量之間取得了非常、非常健康的平衡。

Your next question comes from the line of Laurent Grandet of Guggenheim.

下一個問題來自 Guggenheim 的 Laurent Grandet。

A question on Quaker. Quaker's trend seems to be getting better, second quarter in a row that -- of organic growth at Quaker, something not seen since 2015, if I'm correct. So could you please give us more granularity in those results, especially, and it's not necessarily what we are seeing in Nielsen data? And how sustainable this trend is in your view? And also I mean this growth seems to be coming at the expense of operating income, which seems to be a change of strategy this year versus the last few years. Should we think about operating margins to continue to compress to sustain the growth here?

我有一個關於 Quaker 的問題。Quaker 的趨勢似乎正在改善，這是連續第二個季度出現有機成長；如果我沒記錯，這是自 2015 年以來未曾見到的情況。因此能否請你更細緻地拆解這些結果？尤其是，這不一定與我們在尼爾森（Nielsen）數據中看到的相符。另外，以你的觀點，這個趨勢有多可持續？還有，我的意思是，這個成長似乎是以犧牲營業利益為代價，而這看起來是今年相較於過去幾年的策略轉變。我們是否應該預期，為了維持這裡的成長，營業利益率將持續被壓縮？

Good question, Laurent. Of course, we want each one of our businesses to be a positive growth business, so Quaker, no different. We will continue to invest to make sure that business continues to grow, maybe not at the levels that we have Frito-Lay, but just good levels.

好問題，Laurent。當然，我們希望旗下每一項業務都是正向成長的業務，所以桂格也不例外。我們會持續投資，確保該業務能持續成長，也許不會達到我們在Frito-Lay那樣的水準，但會是良好的成長水準。

We've done several things with that business. One is we invested a bit more, both in CapEx and on cost of goods. Cost of goods, specifically in the area of improving the formulation of our Quaker products. So we've eliminated all the artificials, now it's only natural and I think that will do well for the brand going forward. Although it's quite an important investment in terms of cost of goods. So that's why you're seeing the operating -- the gross margin reducing a little bit in Quaker.

我們在這項業務上做了好幾件事。其中之一是我們多投資了一些，包含資本支出（CapEx）以及銷貨成本。銷貨成本方面，特別是用在改善我們桂格產品的配方。因此我們已經去除了所有人工添加物，現在只剩天然成分，我認為這將有利於品牌未來的發展。不過就銷貨成本而言，這確實是一項相當重要的投資。所以這就是你看到桂格的營運——毛利率略微下降的原因。

In terms of the breadth of growth, it is across all the different brands that make up that business. So it is our oats, but it's also on light snacks, which actually have a tremendous, tremendous potential. It's part of Aunt Jemima. It's part of the convenient foods in -- with Near East. So it's a broad, broad growth, and I think it's sustainable as we put a bit more focus on the brands, the innovation and the execution of those particular brands.

就成長的廣度而言，成長來自於構成該業務的所有不同品牌。所以不只是我們的燕麥產品，也包括輕食零食，而那其實有非常、非常大的潛力。也包含Aunt Jemima的一部分。也包含Near East的便利食品。因此這是非常、非常廣泛的成長；我認為當我們在品牌、創新以及這些特定品牌的執行上投入更多焦點時，這樣的成長是可持續的。

The fact that we've put this business under the Frito-Lay organization so they report to Steven Williams now, it will bring more operational excellence to that organization in terms of both supply chain and sales. And I think that, per se, will drive growth as we execute better. So I would say, again, a holistic look at the business starting from innovation, brands. And in this case, execution as well, being a big lever I think of potential future performance.

我們把這項業務納入Frito-Lay組織之下，現在向Steven Williams彙報，這將在供應鏈與銷售兩方面為該組織帶來更高的營運卓越。我認為，單就這一點而言，隨著我們執行得更好，就會推動成長。所以我會說，再次強調，是以整體角度來看這項業務，從創新、品牌開始。而在這個案例中，執行同樣是一個重要槓桿，我認為它是未來潛在表現的一大驅動因素。

Your next question comes from the line of Kevin Grundy of Jefferies.

下一個問題來自Jefferies的Kevin Grundy。

Question on the Pioneer Foods deal and in M&A more broadly. So the Pioneer deal announced back in mid-July, I understand it hasn't closed yet. But perhaps a little background how the deal came together and why Pioneer is the right asset to accelerate growth in the Sub-Saharan Africa region?

關於Pioneer Foods交易以及更廣泛的併購（M&A）問題。Pioneer這筆交易在7月中旬宣布，我了解目前尚未完成交割。但能否請你稍微說明一下這筆交易是如何促成的背景，以及為什麼Pioneer是加速撒哈拉以南非洲地區成長的合適資產？

And then more broadly, Ramon, on M&A, is it fair to say that international and food snacks is where investors should expect to see capital deployed going forward from an M&A perspective?

然後更廣泛地問一下，Ramon，關於併購（M&A），是否可以說，從併購角度來看，投資人未來應該預期資本會主要投向國際市場以及食品零食領域？

Yes. Listen, Pioneer is -- Africa is a continent of the next 30 years, right? So we're putting a capital against a market opportunity that will deliver itself in the next 20 years. What Pioneer gives us is more scale in a continent where you're successful not only because of you have good products, but you need to have very good infrastructure, very good go-to-market, very good manufacturing, clearly closer to the consumer and very good talent. I think from Pioneer, we get a very good set of brands across multiple categories, starting with basic food, but going all the way to more sophisticated breakfast solutions and juice solutions. It gives us great talent, great local talent that understands how to operate in Africa. It gives us scale for our go-to-market, and this will help our beverages and our snack businesses. And it gives us a good operating efficiency as we integrate all these businesses. So it is a good investment for us.

是的。聽著，Pioneer——非洲是一個未來30年的大陸，對吧？所以我們是在把資本投入一個市場機會，而這個機會會在未來20年逐步兌現。Pioneer帶給我們的是在一個大陸上更大的規模；在那裡要成功不僅是因為你有好產品，你還需要非常好的基礎設施、非常好的市場進入（go-to-market）能力、非常好的製造能力，顯然也要更貼近消費者，以及非常好的人才。我認為透過Pioneer，我們獲得了一套非常好的品牌組合，涵蓋多個品類，從基本食品開始，一直到更精緻的早餐解決方案與果汁解決方案。它帶給我們優秀的人才、優秀的在地人才，了解如何在非洲營運。它為我們的市場進入提供規模，並將有助於我們的飲料與零食業務。而且在我們整合所有這些業務時，它也帶來良好的營運效率。所以對我們而言，這是一項好的投資。

Why Pioneer? We've been looking at different options obviously over time. And Pioneer, we've been -- we're good friends for many years with the Pioneer team, and the opportunity came as of recently. So it is a strategic geography for us from, I would say, horizon 3, not horizon 1 or 2, but horizon 3. And we think it's going to be a very, very strategic investment for us going forward.

為什麼是Pioneer？我們顯然一直在評估不同選項。而Pioneer方面，我們多年來與Pioneer團隊一直是很好的朋友，而這個機會是最近才出現的。因此，對我們來說這是一個策略性地理布局，我會說是第三視野（horizon 3），不是第一或第二視野，而是第三視野。我們認為這將是我們未來非常、非常具策略性的投資。

Your next question comes from the line of Amit Sharma of BMO Capital Markets.

下一個問題來自BMO Capital Markets的Amit Sharma。

I want a follow-up too. I think there was a question earlier about pricing in FLNA, like clearly pricing-driven, but just about how sustainable that is going forward. And then broadly, for Hugh, we clearly hear you on small packages and innovation in beverages. But as you look at your overall portfolio, do you feel like you have the brand to meet evolving consumer demand or do you need to look at M&A for your beverage portfolio as well?

我也想追問一下。我想先前有個問題談到FLNA的定價，顯然是由定價帶動，但想問這樣的情況未來有多可持續。然後更廣泛地問Hugh，我們清楚聽到你提到飲料的小包裝與創新。但當你看整體產品組合時，你覺得你們的品牌是否足以滿足不斷演變的消費者需求，還是你們也需要透過併購（M&A）來補強飲料產品組合？

I'll talk about the brands and then maybe Hugh can talk about the other part of the question. I think we have a very good portfolio, actually, in North America to cover both existing demands and future demands, right? So if you think about our CSD brands, when you think about our water brands with LIFEWTR, bubly, Aquafina, if you think about our coffee, Starbucks, if you think about our teas, Pure Leaf, it's -- I mean we have a newly-acquired value-added dairy business, SodaStream going forward, so we have I think a very broad portfolio to cover both existing demands, future demands. And as I said, indulgent functional hydration, I mean multiple, multiple occasions around the day and today's demand and future demand.

我先談品牌，然後也許Hugh可以談問題的另一部分。我認為我們在北美其實有非常好的產品組合，能同時涵蓋現有需求與未來需求，對吧？所以如果你想到我們的碳酸飲料（CSD）品牌、想到我們的水品牌如LIFEWTR、bubly、Aquafina，想到我們的咖啡（Starbucks），想到我們的茶（Pure Leaf）——我們還有新近收購的加值乳品業務，以及未來的SodaStream，所以我認為我們有非常廣泛的產品組合，能涵蓋現有需求與未來需求。而且如我所說，放縱型的機能補水——我的意思是，一天之中有多種、多種飲用情境，涵蓋今天的需求與未來的需求。

Whether we'll need some smaller brands to add to the portfolio, like we have KeVita or some other smaller brands, we'll see as we go forward. They will not be meaningful to the overall breakdown of the portfolio that I think we have. The big brands that we need to take the business forward and those brands can innovate into multiple spaces, right? So I mean that's the beauty.

至於我們是否需要加入一些較小的品牌來補充組合，例如我們有KeVita或其他一些較小品牌，我們會隨著時間推進再看。它們不會對我認為我們整體產品組合的結構拆分造成重大影響。我們需要帶動業務向前的，是那些大品牌，而那些品牌可以在多個領域進行創新，對吧？所以我的意思是，這就是它的美妙之處。

So Gatorade, you can see it's a beautiful brand that has been playing on part of the market. Now we take it to another part of the market, and we generate $500 million of additional revenue in 1 year. So I think we have the brands. Now we need to keep those brands very relevant, keep them modern, keep them attractive to the consumer as the new generations come into the marketplace. And then we need to keep innovating into new spaces under the umbrella of those brands. And they're broad enough brands that can cover multiple spaces. So I would not -- I think we're very well positioned better than our competition, I think, in that space. And then we'll have to, as I said, keep innovating and keep building the brand into more modern ways of communicating. But it's -- I think we're very well positioned to capture today's demand and future demand. And, Hugh, if you want to talk about the other part.

以Gatorade為例，你可以看到這是一個很棒的品牌，過去在市場的一部分領域發揮。現在我們把它帶到市場的另一部分領域，並在1年內額外創造了5億美元的營收。所以我認為我們有這些品牌。現在我們需要讓這些品牌保持高度相關性、保持現代感、保持對消費者的吸引力，因為新世代會進入市場。然後我們需要在這些品牌的傘下持續向新領域創新。而且它們是足夠廣泛的品牌，可以覆蓋多個領域。所以我不會——我認為我們在那個領域的布局非常到位，甚至比競爭對手更好。接著我們必須，如我所說，持續創新，並以更現代的方式來溝通與打造品牌。但我認為我們非常有利於掌握今天的需求與未來的需求。Hugh，如果你想談談另一部分的話。

Yes. Yes. Regarding Frito-Lay. Amit, a couple things to keep in mind. Number one, the Sabra business, we include Sabra in our volume, but not in our revenue. It's not a consolidated venture, so we do capture volume but not revenue. Sabra is growing below the Frito-Lay average and the product is quite heavy. If you back out Sabra, that's worth 0.5 point. So the 1.5 volume is actually 2 points of volume if you back out Sabra. That relates more directly to the 5.5 Frito-Lay revenue, so that leaves you with about 3.5 points of price/mix. Obviously, pricing was a bit higher this year than what we've seen on average over the last couple of years, but not dramatically so. And mix is clearly a tailwind as well as we move more the portfolio into premium products. So I think you'll see numbers that are pretty consistent with that relationship. Once you back out Sabra, it may be a little bit less, but not dramatically so in the Frito-Lay business.

是的。是的。關於 Frito-Lay。Amit，有幾點需要記住。第一，Sabra 業務，我們把 Sabra 計入我們的銷量，但不計入我們的營收。它不是合併報表的合資企業，所以我們會反映銷量但不反映營收。Sabra 的成長低於 Frito-Lay 的平均水準，而且產品相當重。如果把 Sabra 扣除，約相當於 0.5 個百分點。所以 1.5 的銷量成長，若扣除 Sabra，實際上是 2 個百分點的銷量成長。這與 5.5 的 Frito-Lay 營收成長更直接相關，因此你會得到約 3.5 個百分點的價格/組合（price/mix）。顯然，今年的定價比過去幾年的平均略高一些，但並沒有高得很誇張。而且隨著我們把產品組合更多轉向高端產品，組合也明顯帶來順風。所以我認為你會看到與這種關係相當一致的數字。一旦把 Sabra 扣除，可能會稍微低一點，但在 Frito-Lay 業務上不會有太大差異。

Your final question comes from the line of Bill Chappell of SunTrust.

您的最後一個問題來自 SunTrust 的 Bill Chappell。

Just looking at Gatorade in particular, I mean great that it's turned around. And is it as simple as saying just long overdue in putting a zero-cal version out there and if that's the right way to look at it? I mean is that resident in the whole business? And maybe you were a little too conservative, a little too slow to some of the changes and some things can be done to kind of accelerate the beverage business going forward?

就特別看 Gatorade 而言，我的意思是，很好它已經扭轉局面。那是否可以很簡單地說，就是早就該推出零卡版本，而這就是正確的解讀方式？我的意思是，這是否反映在整個業務之中？也許你們之前有點過於保守、對一些變化反應稍慢；那麼未來是否有些事情可以做，以加速飲料業務的發展？

No, it's not. We didn't say it was the only lever, right? It's multiple levers that we're playing to make Gatorade successful. And we're changing packaging, we improved our communication, we improved our execution on kind of the broad Gatorade brand. And then we added innovation, which normally it is a big lever of acceleration, right? If you hit the right innovation in these big brands, that gives you a big, big lever.

不，不是那樣。我們並沒有說那是唯一的槓桿，對吧？我們正在運用多個槓桿來讓 Gatorade 成功。我們在改變包裝、改善溝通，也提升了在整體 Gatorade 品牌上的執行。然後我們也加入了創新，而創新通常是加速的一個重要槓桿，對吧？如果你在這些大型品牌上打中正確的創新，那會帶來非常、非常大的槓桿。

We're looking at hydration as a holistic opportunity. And we have Gatorade, we have Propel, we have Bolt24, so we're looking at different solutions for different type of consumers there. We're looking at direct-to-consumer solution for Gatorade. We're looking at other ways of personalizing consumption for Gatorade to make sure our kind of value added to the consumer is higher, more personalized.

我們把補水視為一個整體性的機會。我們有 Gatorade、Propel、Bolt24，因此我們在那裡為不同類型的消費者尋找不同的解決方案。我們也在為 Gatorade 尋找直達消費者（direct-to-consumer）的解決方案。我們也在尋找其他方式，讓 Gatorade 的消費更個人化，以確保我們對消費者所提供的附加價值更高、更個人化。

So I didn't mean to say that it was only launching Zero and that was it, right? It's a much broader set of efforts across the organization to make sure that we continue to be the preferred house of solutions for sports drinks, Gatorade being one part, again Propel is growing fast, and it's a great solution for low-calorie hydration. The same now with Bolt24, where we expect to innovate going forward. So that we're looking at this opportunity. And physical performance is a big going forward consumer need, that I think we want to participate, not only with hydration, but maybe other solutions as well.

所以我並不是要說只要推出 Zero 就結束了，對吧？這是一套更廣泛的努力，遍及整個組織，以確保我們持續成為運動飲料解決方案的首選品牌家族；Gatorade 只是其中一部分；同樣地，Propel 成長很快，而且它是低熱量補水的一個很好的解決方案。現在 Bolt24 也是如此，我們預期未來會持續創新。所以我們正在看待這個機會。而身體表現（physical performance）是未來一項重要的消費者需求，我認為我們希望參與其中，不僅是透過補水，也可能透過其他解決方案。

So thank you all for your time and participation in this morning's call. To conclude, summarizing, we're pleased with our results in the third quarter and we now expect to meet or exceed our original target for our full year organic net revenue growth. We're executing well against our key priorities, and especially, we thank you all for your confidence you've placed in us with your investment. Thank you.

因此，感謝各位撥冗並參與今天早上的電話會議。最後總結，我們對第三季的業績表現感到滿意，並且我們現在預期可達成或超越原先設定的全年有機淨營收成長目標。我們正針對關鍵優先事項良好執行；也特別感謝各位以投資對我們所展現的信心。謝謝。

Thank you for participating in PepsiCo's Third Quarter 2019 Earnings Conference Call. You may now disconnect.

感謝您參與百事公司 2019 年第三季財報電話會議。您現在可以掛線。