Coca-Cola And PepsiCo: Despite Recent Concerns, Investing In These Beverage Stocks Smells Like Money
Coca-Cola (KO) and PepsiCo (PEP), the two beverage giants, are facing intense pressure from their domestic U.S. market. Both companies are witnessing decline in their respective soda sales due to wet weather conditions and growing health concerns surrounding soda drinks. Looking at the intense domestic market and declining sales, both the companies increased their efforts in international markets, or diversified their product line to reduce the impact of this headwind. Let’s analyze these initiatives to see how they are helping these beverage companies.
Is there a way out?
Carbonated soft drinks, or CSD, sales have continued their negative trend in the U.S. According to Nielsen‘s report for the four-week period ending August 13 this year, overall CSD sales declined 3.8% year over year, while volume sales of diet soda, a sub category CSD, have declined 6.9%. The two beverage companies Coca-Cola and PepsiCo have felt