Stock Wars: Coca-Cola Vs. Pepsi

Cans, Can, Coke, Coca, Cola, Sprite, Fanta, Pepsi

Comb through the annual reports of Coca-Cola and Pepsi and you will see the two rivals list one another as their main competition. White both are giants in the beverage field, there is one key difference, which could be the reason to pick one over the other.

About Coca-Cola

Sparkling soft drink brands for Coca-Cola Co (KO) include Coca-Cola, Diet Coke, Sprite and Fanta. The company also has a growing portfolio of non-sparkling soft drinks that includes Powerade, Vitaminwater, Minute Maid, Costa Coffee, Fuse and Gold Peak.

Coca-Cola also owns a stake in energy drink maker Monster Beverage (MNST) and helps distribute the brand. The company owns a stake in growing sports drink company BodyArmor.

Sparkling soft drinks made up 69% of unit case volume for Coca-Cola in fiscal 2019. The company’s portfolio includes four of the top five non-alcoholic sparkling beverages with Coke, Diet Coke, Fanta and Sprite.

About Pepsi

Sparkling soft drink brands for PepsiCo Inc (PEP) include Pepsi, Diet Pepsi, Mountain Dew and Mug Root Beer. The company’s portfolio of non-sparkling soft drinks includes Gatorade, bubbly, Pure Leaf and Tropicana.

The Key Difference

The big difference between the two beverage giants is the huge portfolio of food brands owned by PepsiCo.

Under its Frito-Lay and Quaker Oats divisions, Pepsi owns brands like Lay’s, Doritos, Quaker Oats, Sabra, Cheetos, Fritos, Tostitos, Cap’n Crunch and Aunt Jemima.

Pepsi got 54% of its revenue from food in fiscal 2019, making its beverage division the smaller segment. The Frito-Lay North America and Quaker Foods North America segments made up 25% and 4% of overall fiscal 2019 revenue, respectively.

Frito-Lay North America made up 45% of the operating profit for PepsiCo in fiscal 2019. This high margin segment has been a key to the financial success of the company over the years.

Related Link: Stock Wars: General Mills Vs. Kellogg Vs. Post

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