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Low oil prices are hurting Pepsi's business

Low energy prices are often thought of as a good thing for consumers, who find themselves with extra money to spend on other things.

However, this years decline in oil prices, which have fallen 18% year-to-date, is hitting an unexpected area: soda and snack sales.

In its second quarter earnings conference call, Pepsi’s (PEP) CEO Indra Nooyi said macro challenges to its business included “the economic impact in a number of markets across the Middle East stemming from consistently low oil prices.”

Specifically, pressure on crude has corresponded with increased currency headwinds. This happens because oil is priced in dollars. When the price of...