A Cool Option for This Summer: The Coca-Cola Company (KO), PepsiCo, Inc. (PEP)

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Competitive Landscape

A quick look at the stock prices of some of these players in the last five years gives us a clear indication of the success of such healthy drinks.

CCE data by YCharts

As depicted by the chart above, Dr. Pepper Snapple has been the best performer providing maximum returns to its shareholders. All thanks to its wide range of low calorie sodas.

Even Coca Cola has been concentrating on this segment and hopes to reap the benefits soon.

However, PepsiCo’s stock price has shown the least growth in spite of its introduction of flavored water and energy drinks.

The Takeaway

Coca Cola does not only manage its costs well and attract customers but also knows how to win customers’ hearts. Its marketing strategies and measures to save the environment, such as having HFC-free coolers are commendable. Additionally, it has a share buyback plan in place and has increased its quarterly dividend. With such efforts in place and announcement of a bright outlook this company looks like a deserving one. Investors should consider this beverage maker as a long term investment.

The article A Cool Option for This Summer originally appeared on Fool.com and is written by Himanshu Poddar.

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