(Bloomberg) -- PepsiCo Inc. gave a full-year sales forecast that fell short of analysts’ estimates and reported a drop in volumes in the North America beverage and Quaker foods units.

Sales growth should be at least 4% on an organic basis in 2024, the company said Friday. Analysts were expecting 5.2% growth. The company previously forecast organic revenue would be near the upper end of its long-term target range of 4% to 6%.   

PepsiCo has consistently raised its prices in recent years amid higher input costs, enabling the company to aggressively increase profit and beat Wall Street earnings expectations. Earnings in the most recent quarter were $1.78 a share, above the average estimate.

“Category growth rates are normalizing as consumer behaviors largely revert to pre-pandemic norms,” Chief Executive Officer Ramon Laguarta said in a prepared statement.

With the company having spent several quarters passing higher commodity costs on to customers, PepsiCo Chief Financial Officer Jamie Caulfield said that consumers now can expect to see a slowdown in price increases. 

“I think what you’re going to see in our pricing is reflected in a pretty significant moderation in inflation in our business,” Caulfield said in an interview. “As we get in to 2024, you’re going to see the consumer work back into a more optimistic position.” Caulfield took over from Hugh Johnston in November, after the longtime PepsiCo CFO departed to serve in the same role at Walt Disney Co. 

PepsiCo’s revenue was $27.9 billion in the company’s fiscal fourth quarter, missing the average analyst estimate. Volume in the North America beverage business was down 6%, while Quaker Foods North America volume was down 8%.

As it’s one of the first major beverage companies to report earnings this season, investors are closely watching PepsiCo and its ability to offset volume declines with higher pricing. The company’s main competitor, Coca-Cola Co., is expected to release results next week. 

“I don’t believe long-term a company can be successful by raising pricing and selling less,” John Sicher, a beverage-industry consultant, said in advance of PepsiCo’s earnings release.

Shares fell 2.2% at 9:34 a.m. in Friday trading in New York.

(Updates shares in final paragraph.)

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