PepsiCo, Inc. (PEP), The Coca-Cola Company (KO) & Monster Beverage Corp (MNST) – Beverage Stocks: Know Your Risks, or Risk Your Future

What does the future hold?

The Coca-Cola Company (NYSE:KO) has launched its Australian marketing campaign by printing customized names on its bottles. If Warren Buffett’s recommendation means anything, then you shouldn’t even consider selling your Coca-Cola stock. The company is now striving to maintain a healthy revenue stream in India and China. While the health drawbacks of The Coca-Cola Company (NYSE:KO) are undeniable, the company’s revenue and stock performance should continue to be strong.

In the U.S., soda consumption has been on a downward trend over the last eight years. PepsiCo, Inc. (NYSE:PEP) is moving forward to Asia, the Middle East, and Africa, with its 24% operating profit increase in Q1 2013. In addition, PepsiCo has also initiated a strategic partnership with Tingyi – one of the leading food and beverage companies in China. This helps to access the company’s distribution network and will result in profit growth.

These days, there are a lot of negative rumors about safety of Monster’s energy drinks. However, consumers will realize soon that these products actually are not so bad as feared. Monster’s strongest advantage compared to the peers is that it has more than 30 different flavors whereas Red Bull only has a few flavors.

Final verdict

Coca-Cola’s favorable price and evident growth in developing countries, due to its brand recognition, helps it lead over PepsiCo, Inc. (NYSE:PEP) at present. I suggest that the current price of The Coca-Cola Company (NYSE:KO) stock gives a good entry opportunity as well as makes the company’s stock a solid buy. For  Monster Beverage Corp (NASDAQ:MNST), there is a great opportunity for sales increase in the international markets due to a large marketing presence to propel growth of the company’s multiple brands.

Marina Avilkina has no position in any stocks mentioned. The Motley Fool recommends The Coca-Cola Company (NYSE:KO), Monster Beverage, and PepsiCo. The Motley Fool owns shares of Monster Beverage Corp (NASDAQ:MNST) and PepsiCo, Inc. (NYSE:PEP).

The article Beverage Stocks: Know Your Risks, or Risk Your Future originally appeared on Fool.com.

Marina is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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