PepsiCo (NYSE:PEP) is about to release earnings results. Follow this Bear Case Scenario:
Coca Cola is the clear global leader in carbonated beverages. Pepsi would have done something by now if it was to take over Coke.
Bottler consolidation is increasing PepsiCo fixed costs, reducing returns and increasing risk exposure to various other inputs and costs. Doesn’t seem wise.
Sugar taxes will become a factor over time and PepsiCo will be targeted by all manner of politicians.
George Gutowski writes from a caveat emptor perspective.