Still drinks put sparkle in Pepsi

US customers appear to be moving away from Pepsi's core product

Pepsico has seen its third quarter profits jump 71%, boosted by strong sales of its non-carbonated drinks.

Beating market expectations, the US food and drink giant said its earnings in the three months to 9 September totalled $1.48bn (£797m).

In the same period of 2005 profits had been pulled down by a one-off charge to $864m. Excluding the charge, the rise in profits year on year was 13%.

Net revenues were up 9% to $8.95bn, from $8.18bn a year ago.

Falling cola sales

It is the seventh straight quarter that Pepsico's results have beaten Wall Street's expectations.

The firm said its profits were boosted by revenue gains in all areas, although sales of its core Pepsi cola product fell 2% in the US.

Global sales of its non-carbonated drinks, including Gatorade, Aquafina bottled water and Lipton iced teas, rose 13%.

Pepsico also owns Tropicana fruit juices and Quaker cereals.