PepsiCo, Inc. (PEP)’s Secret Billion Dollar Product

However, one of the companies’ biggest weaknesses is in the soft drink market.

Pepsi and The Coca-Cola Company (NYSE:KO) are both coming to grips with the fact that the soft drink market is shrinking. Last year saw the biggest decline in three years as soft drink sales volume declined 1.2%. The previous two years saw declines as well–sales declined 1% in 2011 and 0.5% in 2010.

Due to the decline of the soft drink market both companies are seeking revenue from what has been termed “good for you” products.  Not to be outdone by PepsiCo, Inc. (NYSE:PEP)’s new foray into the protein market, this past December Coca-Cola announced that it was getting more involved in the protein market and was buying a stake in the maker of Core Power, a high protein milkshake line.

Conclusion

Pepsi has the edge going forward, as its push into a new product category gives it the potential for greater growth in the near future. This will provide more of an impetus for investors to get excited about PepsiCo, Inc. (NYSE:PEP), thus giving it better long term performance than Coca-Cola.

The article Pepsi’s Secret Billion Dollar Product originally appeared on Fool.com and is written by Sean Sullivan.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.