Will Pepsi's Newest Market Drive Sales?
In today's edition, analysts Brendan Byrnes and Austin Smith look at how investors should react to PepsiCo's newest market: Myanmar. The company recently announced that it will re-enter the country after a long hiatus. The announcement follows Coca-Cola's announcement a few weeks ago that it will be selling in the region as well. While neither expects its entrance to the country to be a truly meaningful growth driver, it's important to note because it really indicates just how far-reaching these companies have become. When the number of countries you don't sell your product can be counted on one hand, where else do you have left to grow?
In both Pepsi and Coke's case, the answer is continued volume growth in current emerging markets such as India, China, and Brazil. Because these countries have truly blanketed the globe now, and domestic markets are already so saturated, investors will have to increasingly look for volume growth in rapidly growing economies, acquisitions, and internal efficiencies for gains going forward.
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The article Will Pepsi's Newest Market Drive Sales? originally appeared on Fool.com.Austin Smith and The Motley Fool own shares of Coca-Cola and PepsiCo. Brendan Byrnes has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Monster Beverage, PepsiCo, and Coca-Cola. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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