The following video is part of our "Motley Fool Conversations" series, in which consumer goods editor and analyst Austin Smith discusses topics across the investing world.
In today's edition, Austin talks about whether investors should consider buying PepsiCo. He believes the company has tremendous assets in the salty snack division, and that the economic moat created by its direct, store delivery system is hard to replicate. A telling fact about the power of PepsiCo's distribution network is that No. 3 bottler Dr. Pepper Snapple (NYS: DPS) often has to sign licensing agreements with PepsiCo or Coke. If that isn't an economic moat, then Austin doesn't know what is.
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At the time thisarticle was published Austin Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of Coca-Cola and PepsiCo.Motley Fool newsletter services recommendCoca-Cola, Monster Beverage, and PepsiCo. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.
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