Carbonated soft drinks (CSDs) form 17% of the company's valuation, and as customers continue to move away from these sugar and calorie-fueled drinks, the U.S. CSD market declined for the tenth consecutive year in 2014. Just for reference, 52% of PepsiCo's revenues through September came from the U.S., but this figure also includes the food revenues. While volume growth for the company's CSDs in North America might remain flat to negative yet again in Q4, profitability might improve, and here's why: Higher Retail Prices Of Beverages Improving economic conditions in the U.S., with falling oil prices and historically low unemployment rates, have boosted customer purchasing power in the country. As a result, beverage makers such as PepsiCo have been able to raise their product prices. According to Citi Research, the consumer-price index for nonalcoholic beverages grew in each of the months through September-December, after remaining flat for two years.