Alternative to Trading Pepsi: PBG and PAS

List of Pepsi alternative stocks

The Pepsi Bottling Group (NYSE: PBG)
PepsiAmericas (NYSE: PAS)

Pepsi Stock Fundamental information

Some investors have chosen to step away from Pepsi and invest in Pepsi Bottling Group or PepsiAmericas. Bottlers, like PBG, generally have much lower margins than Pepsico itself, somewhere around 8-9%. Bottlers and Pepsi affiliates can increase margins and profitability by improving logistic efficiency or effectively managing its petroleum costs through hedging. Of course a decrease (or increase) in gasoline prices have a material effect on the bottom line of the bottlers. The key for these groups, and groups like PepsiAmericas, is securing licensing agreements to take advantage of the movement away from carbonated beverages and into the energy/vitamin drinks. This group will grow 20% next year, while carbonated beverages will be closer to 2%.