Pepsi is starting to give up on soda
"I think focusing on just (carbonated soft drinks) is a thing of the past," CEO Indra Nooyi told investors.
Soda sales declined 1% in the most recent quarter, while diet sodas fell 6.5%, the Associated Press reports. Coca-Cola's soda sales are also declining.
Nooyi said she expects the brand's snack and bottled tea businesses to drive sales in the future.
Americans are increasingly seeking out teas and energy drinks over soda, as evidenced by Coca-Cola's $2.5 billion stake in Monster Energy.
This chart by IBISWorld shows declining soda consumption in the U.S.
As soda consumption continues to decline, companies will have to get more creative to make profits.
Diet soda is in trouble too.
Consumers have become increasingly wary of aspartame, an artificial, man-made sweetener that has been plagued by rumors that it causes cancer.
Aspartame is often sold under the brand names NutraSweet® and Equal®.
PepsiCo reformulated its Diet Pepsi beverage and has introduced a beverage sweetened with natural sweetener Stevia called Pepsi True.
The company says the new product "will continue to provide consumers with the crisp, refreshing zero-calorie cola taste they expect from Pepsi."
Aspartame is generally known for having an artificial taste, while sucralose, which is widely known as Splenda, is supposed to taste more like real sugar.
Many in the industry expect that brands like Coke and Pepsi will continue moving away from traditional soda as Americans grow to prefer other beverages.