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Yahoo
29-07-2025
- Business
- Yahoo
PepsiCo's Snack‑Soda Synergy: A Consumer Combo Worth Buying
Key Points PepsiCo enjoys a measure of safety because of the breadth of its food and beverage portfolio. The stock will likely make money in the long term, but gains could be relatively modest. 10 stocks we like better than PepsiCo › There are many approaches to investing. And individual investors each bring unique insights, experiences, and perspectives to the table. And yet despite the disparities, everyone who buys stocks has the same goal: to make money. The flip side of this is that every shareholder of every stock thinks the same thing: I sure don't want to lose money. This fear of losing money can keep them on the sidelines. They want to feel that an investment is safe before risking the money that they worked hard to get. This is why I believe that PepsiCo (NASDAQ: PEP) is a stock that many should consider. It's one of the safest investments on the stock market and can provide a foundation for a larger portfolio. Of course, safety means different things to different people. So, I will clarify what I mean. But first, let me explain why PepsiCo stock is almost always a good consideration for investors. A consumer combo worth buying Everyone knows that PepsiCo sells Pepsi. The iconic cola began selling under the name Pepsi-Cola in 1898. As of 2024, it's the fourth most popular carbonated beverage in U.S., behind only Coca-Cola, Dr. Pepper from Keurig Dr Pepper, and Sprite, according to Beverage Digest. Many people also know that PepsiCo isn't limited to its namesake beverage. The company owns the country's sixth most popular carbonated beverage as well, which is Mountain Dew. And on top of these two bestsellers, the company owns dozens of other beverage brands, including Gatorade. However, PepsiCo is far more than a beverage empire. The company owns snacks such as Lay's potato chips, food such as Quaker oatmeal, and more. Indeed, the company's portfolio is quite large and continues to get bigger every year. Consumer tastes do shift. But the advantage for Pepsi is that there's usually something in its portfolio that's in style. Consider that over the last 15 years, the most that quarterly revenue has ever been down is by less than 7%. In other words, if revenue drops in one area, there's usually something else to take up the slack. The profitability in this business is strong. In the first half of its fiscal 2025, the company had an operating margin close to 11%. Considering its huge scale, this means that it has earned over $12 billion in operating income over the last 12 months. Having a consistent flow of cash to work with helps PepsiCo maintain its competitive edge. The consumer packaged-goods industry has fairly low barriers to entry, meaning new upstart players frequently emerge. But the company has the means to acquire the most promising ones before they become problematic. For example, it acquired prebiotic soda company Poppi for almost $2 billion earlier in 2025. And not long thereafter, the company even launched a prebiotic version of its iconic Pepsi flavor. If PepsiCo were only a beverage company, then the stock simply wouldn't have the same measure of safety as it has by having the extra component of its business, which is food. That's why the snack-soda synergy is worth buying. Some thoughts on PepsiCo's safety By saying that it's a safe stock, I mean that I believe the stock will make money for investors over the next five years or more with limited downside risk. That said, the upside may be modest compared to other potential investments. PepsiCo stock currently trades at 26 times earnings, which isn't cheap. It's facing headwinds with second-quarter net revenue only up 1% year over year. And earnings per share dropped sharply, in part, due to higher expenses. Moreover, it has opportunity for growth but, being a scaled-up business already, it takes a lot to move the needle. In short, the business' growth has slowed, and the stock isn't cheap, which might mean that it struggles to keep up with the S&P 500 long term. For perspective, it's underperformed over the past decade. For investors looking for a safe position in their portfolios, there may be both safety and more upside potential with a simple S&P 500 index fund. However, the company does also pay a reliable quarterly dividend, something it started doing over 50 years ago. With a high yield at 3.8%, as of this writing, this may tip the scales back to a PepsiCo investment instead of settling for an index fund. It probably won't be the highest performer in a portfolio. But a broad range of products and massive global scale make it a safe stock for most investors. And with an attractive dividend yield, PepsiCo could be a dividend stock to buy today. Should you invest $1,000 in PepsiCo right now? Before you buy stock in PepsiCo, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and PepsiCo wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Jon Quast has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. PepsiCo's Snack‑Soda Synergy: A Consumer Combo Worth Buying was originally published by The Motley Fool Sign in to access your portfolio
NDTV
18-07-2025
- Business
- NDTV
Trump Wants Coca-Cola To Use Cane Sugar In Sodas, But Consumers Want...
The debate over whether Coca-Cola should use high-fructose corn syrup or cane sugar in its signature soda obscures an important fact: Consumers are increasingly looking for Coke with no sugar at all. Coca-Cola Zero Sugar, which was introduced in 2017, uses both the artificial sweetener aspartame and the natural sweetener stevia in its recipe. It's one of Coke's fastest-growing products, with global case volumes up 14% in the first quarter of the year. By comparison, the company's total case volumes were up 2%. PepsiCo also noted Thursday that 60% of its sales volumes in major markets in the second quarter came from low- or no-sugar drinks. 'When you look at colas, the percentage of growth coming from zero sugar is significant,' said Duane Stanford, the editor and publisher of Beverage Digest. The scrutiny over Coke's sweeteners began Wednesday, when President Donald Trump announced that Atlanta-based Coca-Cola Co. had agreed to switch to using cane sugar in the regular version of its beverage manufactured in the US. 'I have been speaking to Coca-Cola about using REAL Cane Sugar in Coke in the United States, and they have agreed to do so,' Trump wrote on his social media site. 'I'd like to thank all of those in authority at Coca-Cola. This will be a very good move by them — You'll see. It's just better!' "I have been speaking to @CocaCola about using REAL Cane Sugar in Coke in the United States, and they have agreed to do so. I'd like to thank all of those in authority at Coca-Cola. This will be a very good move by them — You'll see. It's just better!" –President Donald J. Trump — The White House (@WhiteHouse) July 16, 2025 Coca-Cola didn't confirm the change. In a statement, the company said it appreciated Trump's enthusiasm and would share details on new offerings soon. Stanford said he doubts Coca-Cola will fully shift away from high fructose corn syrup, which has sweetened Coke in the US since the 1980s. There would be tremendous supply chain and logistics headaches, he said, and the US doesn't make enough sugar for Coke's needs. He expects the Atlanta-based company will offer a cane sugar-sweetened version in the US just like its rival Pepsi has been doing since 2009. He noted that Coke has indulged US fans by importing Mexican Coke, which is made with cane sugar, since 2005. Coke positions Mexican Coke as an upscale alternative and sells it in glass bottles. The corn industry wasn't happy with the speculation. In a statement Wednesday, Corn Refiners Association President and CEO John Bode said replacing high fructose corn syrup with cane sugar makes no sense and would cost thousands of American manufacturing jobs. Shares in ADM, a maker of high fructose corn syrup, dipped nearly 2% Thursday after Trump's announcement. In a message on X, Coca-Cola defended high fructose corn syrup, saying it's no more likely to contribute to obesity than table sugar or other full-calorie sweeteners. 'It's safe; it has about the same number of calories per serving as table sugar and is metabolized in a similar way by your body,' the company said. 'Please be assured that Coca-Cola brand soft drinks do not contain any harmful substances.' The Food and Drug Administration also says there is no evidence of any difference in safety among foods sweetened with high fructose corn syrup and those that sugar, honey or other traditional sweeteners. Soft drink preferences are highly subjective, as anyone who has been in a Pepsi vs Coke or 7-Up vs. Sprite debate knows. But recent trends indicate that Coke and other drink makers need to focus on the kinds of low- and no-sugar drinks that a growing number of consumers are seeking, according to Stanford. He said his data shows original Coke was the top seller by volume in the US last year, with 19% market share, while Coke Zero Sugar was seventh and had a 4% market share. But Coke Zero Sugar's share grew 10%, while original Coke's share was flat. Paige Leyden, the associate director of food service, flavors and ingredients reports at the market research company Mintel, said drinks with a health halo like Olipop — which has 1 gram of sugars compared to original Coke's 65 grams — are also pressuring legacy soda makers. Mintel expects full-sugar sodas will see a 3.4% rise in US sales this year, while diet sodas will see 11.8% growth. Still, nutritionists suggest avoiding added sugars, no matter the form, since they provide empty calories with no nutrients. The 2020 US dietary guidelines advise people to limit foods and beverages higher in added sugars, and say children under 2 should not be fed them at all. Health Secretary Robert F Kennedy, whose nutrition views often diverge from mainstream nutrition science, has spoken out against sugar. His agency is expected to release updated nutrition guidelines later this year. 'There's things we'll never be able to eliminate, like sugar,' Kennedy said at an April news conference. 'And sugar is poison, and Americans need to know that.' Aspartame and other artificial sweeteners are also named as a concern in a government report Kennedy issued in May.
Euronews
18-07-2025
- Business
- Euronews
Trump says Coke will use cane sugar, despite popular sugar-free drinks
Consumers are increasingly searching for Coca-Cola without any sugar at all, despite a confirmation from US President Donald Trump that the company agreed to use cane sugar in its drinks. 'I have been speaking to Coca-Cola about using REAL Cane Sugar in Coke in the United States, and they have agreed to do so,' Trump wrote on his social media site earlier this week. "This will be a very good move by them - you'll see. It's just better!" Coca-Cola didn't confirm the change but said it appreciated Trump's enthusiasm and would share details on new offerings soon. Duane Stanford, the editor and publisher of Beverage Digest, said growth is "significant" for Coca-Cola from the sale of its Zero Sugar product, a drink using artificial sweeteners aspartame and stevia. Global cases of zero sugar were up 14 per cent in the first quarter of 2025, compared to the company's total case volumes, which only went up 2 per cent. In the soft drink market, Stanford said Coke Zero Sugar was the seventh biggest seller by volume in the US last year, with a 4 per cent market share, compared to Coke's overall brand, which had 19 per cent market share. Competitor PepsiCo also told the Associated Press that 60 per cent of its sales volumes in major markets in the second quarter came from low- or no-sugar drinks. Shift away from corn syrup could bring 'logistics headaches' Stanford said he doubts Coca-Cola will fully shift away from high fructose corn syrup, which has sweetened other Coke products in the US since the 1980s. There would be tremendous supply chain and logistics headaches, he said, and the U.S. doesn't make enough sugar for Coke's needs. He expects the Atlanta-based company will offer a cane sugar-sweetened version in the US like Pepsi-Co has been doing since 2009. The corn industry wasn't happy with the speculation that Coca-Cola could move towards cane sugar. In a statement Wednesday, Corn Refiners Association President and CEO John Bode said replacing high fructose corn syrup with cane sugar makes no sense and would cost thousands of American manufacturing jobs.
Washington Post
17-07-2025
- Business
- Washington Post
Trump says Coke will shift to cane sugar. But increasingly, shoppers want no sugar in their sodas
The debate over whether Coca-Cola should use high-fructose corn syrup or cane sugar in its signature soda obscures an important fact: Consumers are increasingly looking for Coke with no sugar at all. Coca-Cola Zero Sugar, which was introduced in 2017, uses both the artificial sweetener aspartame and the natural sweetener stevia in its recipe. It's one of Coke's fastest-growing products, with global case volumes up 14% in the first quarter of the year. By comparison, the company's total case volumes were up 2%. PepsiCo also noted Thursday that 60% of its sales volumes in major markets in the second quarter came from low- or no-sugar drinks. 'When you look at colas, the percentage of growth coming from zero sugar is significant,' said Duane Stanford, the editor and publisher of Beverage Digest. The scrutiny over Coke's sweeteners began Wednesday, when President Donald Trump announced that Atlanta-based Coca-Cola Co. had agreed to switch to using cane sugar in the regular version of its beverage manufactured in the U.S. 'I have been speaking to Coca-Cola about using REAL Cane Sugar in Coke in the United States, and they have agreed to do so,' Trump wrote on his social media site. 'I'd like to thank all of those in authority at Coca-Cola. This will be a very good move by them — You'll see. It's just better!' Coca-Cola didn't confirm the change. In a statement, the company said it appreciated Trump's enthusiasm and would share details on new offerings soon. Stanford said he doubts Coca-Cola will fully shift away from high fructose corn syrup , which has sweetened Coke in the U.S. since the 1980s. There would be tremendous supply chain and logistics headaches, he said, and the U.S. doesn't make enough sugar for Coke's needs. He expects the Atlanta-based company will offer a cane sugar-sweetened version in the U.S. just like its rival Pepsi has been doing since 2009. He noted that Coke has indulged U.S. fans by importing Mexican Coke , which is made with cane sugar, since 2005. Coke positions Mexican Coke as an upscale alternative and sells it in glass bottles . The corn industry wasn't happy with the speculation. In a statement Wednesday, Corn Refiners Association President and CEO John Bode said replacing high fructose corn syrup with cane sugar makes no sense and would cost thousands of American manufacturing jobs. Shares in ADM, a maker of high fructose corn syrup, dipped nearly 2% Thursday after Trump's announcement. In a message on X, Coca-Cola defended high fructose corn syrup, saying it's no more likely to contribute to obesity than table sugar or other full-calorie sweeteners. 'It's safe; it has about the same number of calories per serving as table sugar and is metabolized in a similar way by your body,' the company said. 'Please be assured that Coca-Cola brand soft drinks do not contain any harmful substances.' The Food and Drug Administration also says there is no evidence of any difference in safety among foods sweetened with high fructose corn syrup and those that sugar, honey or other traditional sweeteners. Soft drink preferences are highly subjective, as anyone who has been in a Pepsi vs. Coke or 7-Up vs. Sprite debate knows. But recent trends indicate that Coke and other drink makers need to focus on the kinds of low- and no-sugar drinks that a growing number of consumers are seeking, according to Stanford. He said his data shows original Coke was the top seller by volume in the U.S. last year, with 19% market share, while Coke Zero Sugar was seventh and had a 4% market share. But Coke Zero Sugar's share grew 10%, while original Coke's share was flat. Paige Leyden, the associate director of food service, flavors and ingredients reports at the market research company Mintel, said drinks with a health halo like Olipop — which has 1 gram of sugars compared to original Coke's 65 grams — are also pressuring legacy soda makers. Mintel expects full-sugar sodas will see a 3.4% rise in U.S. sales this year, while diet sodas will see 11.8% growth. Still, nutritionists suggest avoiding added sugars, no matter the form, since they provide empty calories with no nutrients. The 2020 U.S. dietary guidelines advise people to limit foods and beverages higher in added sugars, and say children under 2 should not be fed them at all. Health Secretary Robert F. Kennedy, whose nutrition views often diverge from mainstream nutrition science , has spoken out against sugar. His agency is expected to release updated nutrition guidelines later this year. 'There's things we'll never be able to eliminate, like sugar,' Kennedy said at an April news conference. 'And sugar is poison, and Americans need to know that.' Aspartame and other artificial sweeteners are also named as a concern in a government report Kennedy issued in May. ___ AP Health and Science Editor Jonathan Poet contributed from Philadelphia.
Yahoo
17-07-2025
- Business
- Yahoo
Trump says Coke will shift to cane sugar. But increasingly, shoppers want no sugar in their sodas
The debate over whether Coca-Cola should use high-fructose corn syrup or cane sugar in its signature soda obscures an important fact: Consumers are increasingly looking for Coke with no sugar at all. Coca-Cola Zero Sugar, which was introduced in 2017, uses both the artificial sweetener aspartame and the natural sweetener stevia in its recipe. It's one of Coke's fastest-growing products, with global case volumes up 14% in the first quarter of the year. By comparison, the company's total case volumes were up 2%. PepsiCo also noted Thursday that 60% of its sales volumes in major markets in the second quarter came from low- or no-sugar drinks. 'When you look at colas, the percentage of growth coming from zero sugar is significant,' said Duane Stanford, the editor and publisher of Beverage Digest. Coca-Cola Co. hasn't confirmed a presidential pronouncement The scrutiny over Coke's sweeteners began Wednesday, when President Donald Trump announced that Atlanta-based Coca-Cola Co. had agreed to switch to using cane sugar in the regular version of its beverage manufactured in the U.S. 'I have been speaking to Coca-Cola about using REAL Cane Sugar in Coke in the United States, and they have agreed to do so,' Trump wrote on his social media site. 'I'd like to thank all of those in authority at Coca-Cola. This will be a very good move by them — You'll see. It's just better!' Coca-Cola didn't confirm the change. In a statement, the company said it appreciated Trump's enthusiasm and would share details on new offerings soon. Stanford said he doubts Coca-Cola will fully shift away from high fructose corn syrup, which has sweetened Coke in the U.S. since the 1980s. There would be tremendous supply chain and logistics headaches, he said, and the U.S. doesn't make enough sugar for Coke's needs. He expects the Atlanta-based company will offer a cane sugar-sweetened version in the U.S. just like its rival Pepsi has been doing since 2009. He noted that Coke has indulged U.S. fans by importing Mexican Coke, which is made with cane sugar, since 2005. Coke positions Mexican Coke as an upscale alternative and sells it in glass bottles. A rush to defend high fructose corn syrup The corn industry wasn't happy with the speculation. In a statement Wednesday, Corn Refiners Association President and CEO John Bode said replacing high fructose corn syrup with cane sugar makes no sense and would cost thousands of American manufacturing jobs. Shares in ADM, a maker of high fructose corn syrup, dipped nearly 2% Thursday after Trump's announcement. In a message on X, Coca-Cola defended high fructose corn syrup, saying it's no more likely to contribute to obesity than table sugar or other full-calorie sweeteners. 'It's safe; it has about the same number of calories per serving as table sugar and is metabolized in a similar way by your body,' the company said. 'Please be assured that Coca-Cola brand soft drinks do not contain any harmful substances.' The Food and Drug Administration also says there is no evidence of any difference in safety among foods sweetened with high fructose corn syrup and those that sugar, honey or other traditional sweeteners. US consumers are seeking more options Soft drink preferences are highly subjective, as anyone who has been in a Pepsi vs. Coke or 7-Up vs. Sprite debate knows. But recent trends indicate that Coke and other drink makers need to focus on the kinds of low- and no-sugar drinks that a growing number of consumers are seeking, according to Stanford. He said his data shows original Coke was the top seller by volume in the U.S. last year, with 19% market share, while Coke Zero Sugar was seventh and had a 4% market share. But Coke Zero Sugar's share grew 10%, while original Coke's share was flat. Paige Leyden, the associate director of food service, flavors and ingredients reports at the market research company Mintel, said drinks with a health halo like Olipop — which has 1 gram of sugars compared to original Coke's 65 grams — are also pressuring legacy soda makers. Mintel expects full-sugar sodas will see a 3.4% rise in U.S. sales this year, while diet sodas will see 11.8% growth. Still, nutritionists suggest avoiding added sugars, no matter the form, since they provide empty calories with no nutrients. The 2020 U.S. dietary guidelines advise people to limit foods and beverages higher in added sugars, and say children under 2 should not be fed them at all. Health Secretary Robert F. Kennedy, whose nutrition views often diverge from mainstream nutrition science, has spoken out against sugar. His agency is expected to release updated nutrition guidelines later this year. 'There's things we'll never be able to eliminate, like sugar,' Kennedy said at an April news conference. 'And sugar is poison, and Americans need to know that.' Aspartame and other artificial sweeteners are also named as a concern in a government report Kennedy issued in May. ___ AP Health and Science Editor Jonathan Poet contributed from Philadelphia.
