Write a 2 page essay on Which company is better to invest in, Coke or Pepsi.Download file to see previous pages… Although on the surface Coca-Cola and Pepsico appear to be quite similar there are so

Write a 2 page essay on Which company is better to invest in, Coke or Pepsi.

Download file to see previous pages…

Although on the surface Coca-Cola and Pepsico appear to be quite similar there are some distinct differences between the two companies. Coca Cola is the world’s largest non-alcoholic beverage company with a market capitalization of $147 billion. The company distributes over 500 non-alcoholic beverage brands Coca-Cola owns and markets four of the top five non-alcoholic sparkling beverage brands in the world including Coca-Cola, Diet Coke, Fanta and Sprite. Unlike Coca-Cola which is concentrated almost exclusively on beverages, a considerable portion of PepsiCo’s product portfolio is in their macro snack division. The company offers over 200 refreshment brands worldwide. Some of their strengths are their youth oriented “New Generation” brand image which helps develop a long term customer base and their strong franchise system helped Pepsi become one of the leaders in the industry. With a market capitalization of $101 billion and major brands such as Frito-Lay, the number one snack product brand in the industry, and popular brands such as Gatorade, Quaker, Tropicana, and Pepsi their product portfolio is much more diversified. As a consequence growth opportunities are far superior for PepsiCo compared with Coca-Cola. Although excellent growth opportunities abound for Pepsi in their snack food business as a whole, the company is much more susceptible to rising commodity prices, therefore it is more exposed to commodity price fluctuations compared to Coca-Cola.

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