The Coca-Cola Company (KO), PepsiCo, Inc. (PEP): More Than Soda

In the first quarter of 2012, PepsiCo, Inc. (NYSE:PEP) reported net revenue growth of 11% in its Latin America Foods division, as well as 12% growth in Brazil. Coca-Cola also had a solid quarter abroad with sales growth of 15% in the firm’s Eurasia and Africa business. Developed countries are saturated with soda, but emerging nations have plenty of room to grow.

3. Value in the brand

There is money in a quality brand, and Coca-Cola and Pepsi are two of the most recognized brands in the world. According to Brand-Finance, Coca-Cola and Pepsi are the 8^th and 38^th most valuable brands today, respectively. Dr Pepper Snapple also has an valuable brand, as its namesake soda’s 1885 origin makes it the oldest major soda in the US.

For Coca-Cola, branding goes back to 1915 when the company first introduced its famous glass bottle. Even today, as soda firms have largely shifted to aluminum and plastic, glass bottle sales are growing. For the fiscal year ending April 13, sales of soda in glass bottles increased 2.6%, while sales of plastic bottles and aluminum cans decreased .8% and 1.9%, respectively. The popularity of the glass bottle shows that consumers are still willing to pay for the classic Coca-Cola brand.

Not to be outdone, Dr Pepper Snapple and Pepsi are also on board the glass bottle train. Though their bottles aren’t as iconic as Coca-Cola’s, both brands also experienced growth in sales of beverages available in glass containers.

Bottom line

Soda sales may be on the decline, but don’t run for the hills just yet. The big three soda firms still offer value in their brands as well as their wide product ranges. Moreover, promising growth in emerging countries tells me that global sales numbers will soon turn around.

Don’t give up on soda. The industry is far from finished.

The article Don’t Be Fooled: This Industry Is Still a Solid Investment originally appeared on Fool.com and is written by Randy Holcombe.

This article was written by Randy Holcombe and edited by Chris Marasco and Marie Palumbo. Chris Marasco is HeadEditor of ADifferentAngle. None has a position in any stocks mentioned. The Motley Fool recommends Coca-Cola and PepsiCo. The Motley Fool owns shares of PepsiCo.

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