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Business Profile

Notes on Coke

Pepsi

• 1893 Caleb Bradham (Brad's Drink)
• 1898 Pepsi Cola
• Products:
• Pepsi, Diet Pepsi (1964), 7-Up, Mountain Dew & Gatorade
• Lays & Doritos
• Competitors:
• Kellog, Kraft Foods, Nestle, & Coca-Cola Co.

Coke

• 1886 Dr. John S. Pemberton
• Coca-Cola Syrup
• 1906 Bottling operations begin
• Products:
• Coca-Cola, Fanta, Sprite, Minute Maid, Vitaminwater, Smartwater, & Powerade
• Competitors:
• Pepsi Co, Nestle, & Snapple Group Inc.

CONCLUSION

Notes on Pepsi

Corporate Ownership & Structure

Pepsi

• Major Shareholders:
• Top 5 are members of the company
• CEO:
• Owns 6.7% of stocks

• Coca-Cola's stock is cheaper compared to PepsiCO (PEP $112.29 vs KO $43.39)
• Coca-Cola maintains a superior balance sheet in terms of cash and debt
• Coca-Cola has market dominance. Holds 8.4% of global market share (Bloomberg). Rival PepsiCo has 3.6%.
• Coca-Cola and PepsiCO have a similar dividend yield per year (2.8%)
• Product Focus: Coca-Cola focuses on the beverage business. PepsiCO has to divide it's attention to snacks and various beverages

Pepsi

Coke

Coke

• Major Shareholders:
• Top 5 Holders
• CEO:
• Owns 3.92% of stocks
• Larger agency problem; owners and firm are more seperate

Bonds

Stocks

Pepsi

• Corp. Bonds
• US Corp. Debetures
• Credit Ratings
• S&P (A-+)
• Reasoning:
• Obligation to meet financial commitments is strong
• Maturity Bonds Length
• Medium Term Notes (Yield: 1.29-4.09)

Pepsi (PEP)

• Stock Markets listed:
• NYSE , Chicago, & SIX Swiss Exchange
• Initial Issue:
• January 13, 1978
• IPO Capital Raised:
• N/A

Coke (KO)

• Stock Markets listed:
• NYSE
• Initial Issue:
• 1919, $40 per share (worth $400k today), $100 for preffered
• IPO Capital Raised:
• $30 Million

Coke

• Corp. Bonds
• US Corp. Debetures
• Credit Ratings
• S&P (AA-)
• Reasoning:
• Likely to meet financial commitments
• Maturity Bonds Length
• Medium Term Notes (Yield 1.165-2.877)

VS

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