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Pepsi might soon fall into third place in the sparkling beverage category behind Coke and Diet...

Pepsi might soon fall into third place in the sparkling beverage category behind Coke and Diet Coke, Credit Suisse analyst Carlos Laboy says, as he downgrades Pepsico (PEP -1.9%) to neutral from outperform. Coca-Cola (KO -0.6%), on the other hand, "should hit a premium valuation reserved for next frontier thinking organizations."
Comments (5)
  • wdbjr
    , contributor
    Comments (10) | Send Message
     
    Pepsi has ventured into leisure snack space very successfully and other beverages as well. It is a stronger company for the diversity. There is a risk in there name brands, ie Coke & Pepsi. There are those who would have sugared carbonated drinks go the way of cigarettes.
    18 Feb 2011, 05:01 PM Reply Like
  • jane-c
    , contributor
    Comment (1) | Send Message
     
    Unlike cigarettes,a large population of people will always want a sweetened carbonated drink. I always like to invest in things that people will continually use.
    18 Feb 2011, 05:42 PM Reply Like
  • Uncle Pie
    , contributor
    Comments (2714) | Send Message
     
    according to published reports, those who consume just one soft drink per day are 80% more likely to develop diabetes than those who don't drink soft drinks.
    Take a look at the chart of NVO, the largest provider of medications for diabetics in the world. That will tell you the story.
    Long NVO.
    18 Feb 2011, 06:55 PM Reply Like
  • jstratt
    , contributor
    Comments (2234) | Send Message
     
    I sold out of PEP last year as they are losing huge volume in sales. They have stopped promoting their premier money maker PEPSI.

     

    My guess is they have 3 paths

     

    1) get rid of a terrible female CEO
    2) Sell themselves to a German (Euro) competitor
    3 Continue to Sink
    18 Feb 2011, 08:04 PM Reply Like
  • mikeybronx
    , contributor
    Comments (347) | Send Message
     
    i stopped drinking sweet carbonated beverages for some time not for health reasons but out of choice. It turns out they are not the best nutritional choice for a beverage. the gender of the CEO is irrelevant to its direction and earnings which by the way is not too shabby. amazingly i sold about $15,000 worth (wholesale cost) of syrups a week so there are people who are drinking this stuff. Pepsi diversification into food brands like Lays and taco bell etc has had a positive impact on its growth. though we here are cognizant of the health issues related to "soda pop" drinking the thirst from emerging third world countries is at its infancy and with their growing wealth comes a strong growing market. consumers are creatures of habit, with every burger or slice of pizza comes a bottle or cup of soda. go figure. upgrades, downgrades will not effect the beverage industry's bottom line while Pepsi and Coca-Cola remain ideally positioned. my preferance is Pelegrino, but thats just me.
    19 Feb 2011, 08:12 AM Reply Like
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