Monster Beverage Corp (MNST), PepsiCo, Inc. (PEP) & The Coca-Cola Company (KO): International Markets Will Sweeten These Beverage Companies

Simplifying sales & distribution

Dr Pepper Snapple Group Inc. (NYSE:DPS) Group
derives 90% of its revenue from North America and, 70% of it comes from carbonated drinks. It is facing stiff competition from its competitors in North America, and the only way out of this situation is international expansion. For many months, the company’s expansion plans were on hold, due to Sales and Distribution licensing agreement restrictions outside the US. However, this hurdle seems to be waning away and, it recently announced the repurchase of distribution rights in its South Asia and Pacific regions. With this, the company can now distribute its products in Australia, China, Japan, South Korea and Malaysia directly. This opportunity will help the company to revive its profits speedily.

The company is also planning to expand its four core products, 7UP, Sunkist, A&W, and Canada Dry into the international market. These products were launched in early 2013 in more international markets, and are receiving good response. Sales shot up by 70% year over year in January 2013 for 7/11 Stores.

Conclusion

PepsiCo, Inc. (NYSE:PEP) and Monster Beverage Corp (NASDAQ:MNST), with their long-term approach of expansion into international markets, and with the new line of products in their portfolios are all set to deliver their shareholders good returns.

Similarly, Dr Pepper Snapple Group Inc. (NYSE:DPS), with repurchase of its distribution rights in key international markets, will maintain positive momentum. Looking at the growth prospects of these companies in the long run, I recommend a buy for all three.

The article International Markets Will Sweeten These Beverage Companies originally appeared on Fool.com.

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