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Coca-Cola Streamlines Its Structure-WSJ

|Includes:KO, PepsiCo Inc. (PEP)

Coca-Cola (NYSE:KO) announced on Monday that it is organizing its operations around three divisions starting January 1st. The 3 divisions are Coca-Cola Americas, Coca-Cola Eurasia and Africa, and the Bottling Investment Group. I believe this is a very smart decision for Coca-Cola to avoid complexity and to attempt to minimize SG&A expenses. I believe that Pepsi (NYSE:PEP) would also benefit from a more simplistic operating structure and honestly I wouldn't be surprised to see them mimic Coke's move, with the exception that Pepsi has much larger food and snacks operations.

Disclosure: I am long PEP.

Stocks: PEP, KO