July 17 (Reuters) - PepsiCo ( PEP ) said on Thursday

that it was expecting a smaller drop in annual core profit as

resilient demand for its energy drinks and healthier soda brands

offsets broader weakness in consumer spending.

The company now expects full-year core earnings per share to

fall 1.5%, compared with a 3% decline expected previously.

"Our core USD EPS outlook has improved versus our previous

expectations as foreign exchange headwinds have moderated, due

to the weakening of the U.S. dollar," CEO Ramon Laguarta said in

a statement.

PepsiCo ( PEP ), like rival Coca-Cola, has responded to a shift

towards healthier snacking from consumers by offering options

such as its recently-acquired prebiotic soda brand Poppi and new

flavors under popular brands such as Lay's and Doritos.

(Reporting by Juveria Tabassum in Bengaluru; Editing by Anil

D'Silva)