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And all -- -- -- apple for the -- -- first quarter earnings the company reported per share earnings that were flat year over year but still coming in ahead.
The Wall Street expectations.
Hugh Johnson -- chief financial officer joins me right now -- and you like to see you again and no big surprises in early it the report a commodity costs for 300 million and you did offset that and other areas -- company you keep that up.
Yeah we absolutely are we were actually very happy with the quarter came in just about exactly where we thought it would be.
I know is a solid B -- where the cell site was but.
It came in basically right on where we expected it to.
They -- -- -- as much as excited as we -- about that we're really excited about the brand building were able to do with a quarter of media 25%.
Any innovation we are able to get out the door things like pets these next this great new products 60% less calories -- just like a great -- I know I never had a lot of taste testing going on now it allows for -- -- but let's talk about.
What the analysts say with four wheel cars of the companies they -- -- really its Frito-Lay that is that the real value.
A PepsiCo is a company we've talked about potentially splitting up you say no way -- says no way but.
-- restructured the company give us an update on how that is going right now you really do wanna focus on the beverage unit out and get those revenues higher how you doing.
Absolutely again came in right about where we expected it to so we we don't think that a split makes a lot of sense we've said that pretty consistently over time we think the beverage business we're gonna -- quarter to quarter consistent improvements.
Every single quarter we feel good about that business and really feel good about where PepsiCo is in terms of that the building plan that we have going right now.
Well you know you part of the revenue gains again and this happens a -- has -- emerging markets has been very strong for you and in particular but the foods business.
Does were you really -- a lot.
Of cash for the company what are you gonna see a ship for those revenue gays anymore US based.
Well I I think we're gonna see solid revenue growth out of out of US were for the year but certainly nothing like you'll see an emerging markets we we get 9% thirteen on a constant currency basis -- emerging I think you're gonna see lower numbers what you will see clearly revenue growth this year out of the US markets.
Okay 500 to 600 million dollars you're gonna be spending this year marketing and advertising and there's that down the restructuring is abusive that.
Deciding Eva Longoria and it demonize you just signed a name what the strategy here.
Well really it goes back to the fundamentals of the business.
We think the real way you make a difference in this business is their brand building and through renovation and celebrities are great vehicle to do the brand building -- We're we've always been especially with the Pepsi business -- the leading edge of pop culture and we think with people like the ones you just mentioned it puts -- very firm.
Only in that spot and kill us talk about partnerships in the past month or so you lost one your big customers did lose Dunkin' brands some on I have the CEO of that company later on.
But you did -- Family Dollar so how.
Crucial our partnerships for you for the next couple of quarters is that kind of where your putting that a new focus on is those partnerships to -- get the product.
Out the doors -- quicker.
All of the with the retail partnerships are are critical and you're right we we lost on him but we did pick up family dollar and in addition to that late last year Papa -- signed off.
We converted Papa -- at the Pepsi in three weeks it was a record for us.
Feel great about that and then maybe the biggest partnership of all is the one we signed with the thing -- company over in China.
We're now the biggest beverage manufacturer with them in China over -- -- times bigger than the number two player of China.
You have any plans as far as building.
That the beverage sales the beverage volume bad -- just came out and they -- the numbers for 2011 and it was -- PepsiCo unfortunately.
PepsiCo bought Pepsi volumes were down about 4% diet -- -- -- 8% so I mean really -- those.
We're talking about advertising money celebrities is that where you're gonna pull it.
The new focus those to you in your -- beverages basically.
The it is where we're clearly gonna see a significant investment behind -- -- beverages.
Also significant investment behind nutritional products like Gatorade and Tropicana.
But Pepsi is clearly gonna get more than its share.
And the focus there is very simply how do we get the -- stronger and stronger and -- -- we get the innovation bigger because ultimately that's the way you win in this business it's not a price game.
It comes down to branding and innovation.
You Johnson the chief financial officer Pepsi -- you all -- in its quarter great to have you again.
Thanks great to be here --
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