Mondelez International Inc (MDLZ): Here’s Why You Should Put PepsiCo, Inc. (PEP) in Your Portfolio

Mondelez is a low-margin, high growth business. Since the split from Kraft, MDLZ has been focusing on region specific product development. For example, it has a heat resistant chocolate that won’t melt in hot climates. In addition, Mondelez International Inc (NASDAQ:MDLZ) is also testing different flavors of its iconic Oreo cookies and Ritz crackers that will appeal to diverse world palates. Since being spun-off, Mondelez has enjoyed a steady ascent.

Kraft is a low growth and high margin business, thanks to lower priced private label competition, rising commodity costs and higher fuel costs. Its brands include Nabisco, Oscar Mayer, Planters, Capri Sun, Crystal Light and Tang brands. In development is a Planter NUTrition line of peanut better that contains nuts and fruits. Kraft has performed well since shedding Mondelez International Inc (NASDAQ:MDLZ). Shares are trading near a 52 week high.

But, Pepsi is the stock in play.

Whole or separate, PepsiCo, Inc. (NYSE:PEP) is an attractive stock. It has a boat-load of world recognized brands. It has a growing presence in emerging and developed markets. And, forward thinking, Pepsi is adding more and more nutritious conscious items.

In April, Pepsi will unveil a new package design for its cola drinks—its first redesign since 1997.

The 16 oz and 20 oz bottles will have an updated label and a swirled grip, making them easier to hold and a better fit for cup holders. A new 12 oz glass bottle with a twisted shape will also debut.

The new packaging is part of Pepsi’s “Live for Now” marketing campaign which also kicks-off in April. The concept of the campaign is to capture the excitement of now.

For PepsiCo, Inc. (NYSE:PEP) shareholders, exciting times are right now.

The article Here’s Why You Should Put Pepsi in Your Portfolio originally appeared on Fool.com and is written by Diane Alter.

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