PepsiCo CEO Laguarta: ‘I’m seeing more optimism’ over 2023 economy

PepsiCo (NASDAQ:PEP) CEO Ramon Laguarta is brushing aside economists”™ predictions of a coming global recession and voiced his optimism for the next 12 months.

In an interview on CNBC during last week”™s World Economic Forum in Davos, Switzerland, Laguarta insisted that a “negative” macroeconomic focus is missing a bigger picture.

“The macro debate seems to be a bit more negative than micro debate,” he said. “When I talk to a lot of my colleagues they are surprised that they”™re doing better than they thought. This is the case for many people in developing and developed markets. There is going to be a difficult 2023, with a lot of unexpected things; that”™s something we”™ve learned in the last few years. We need to be prepared for the unexpected. But I”™m seeing more optimism than I had before coming to Davos.”

Laguarta added there was “very little unemployment when you look around the world. That to me is very positive. We”™re having good harvests across the world that will have a positive impact in the economy. We”™re seeing China opening and that”™s a positive as well. I think we”™re starting the year with some kind of degrees of grey but I”™m seeing optimism in a lot of the people I”™m talking to.”

Laguarta acknowledged there were still supply chain bottlenecks, but he also insisted commodity costs were coming down, which he said was another sign of a strengthening market. He predicted that low unemployment rates coupled with how consumers are “strategizing around their budget” will play in the Purchase-based company”™s favor.

“Those are realities that we”™re seeing in our categories but they continue to be resilient,” he said. “We”™re seeing growth in our categories, and consumers that engage with our brands.”