Boston, MA 04/29/2014 (wallstreetpr) – Although PepsiCo, Inc. (NYSE:PEP) is already giving The Coca-Cola Company (NYSE:KO) a run for its money in the soft drinks market, the company has not started allowing its soda customers to make their own drinks at home. However, if recent reports are anything, the company could be considering at-home soda business.
The reasons PepsiCo might want to invest in the make-your-own-soda business are twofold. For one, the market seems to be lucrative besides growing very fast. As such, unlike BlackBerry Ltd (NASDAQ:BBRY) or Nokia Corporation (NYSE:NOK) that missed the boat in the market, and, therefore, paid dearly for their inaction. PepsiCo might not want to risk its business by keeping away from at-home soda business at a time when peers and rivals and investing in the opportunity.
The second reason may have to do with the fact that rival Coca-Cola is already into the business. The Coke maker acquired stake in a company that makes machines for the at-home soda production. The move is expected to help Coca-Cola boost its soda sales.
On the basis of these reasons, PepsiCo, Inc. (NYSE:PEP) might not have a choice but to play along with the market trends.
At-home soda business
It emerged recently that PepsiCo is among the major investors jostling for a stake in Sodastream. PepsiCo is named alongside Starbucks and Dr Pepper Snapple Group as interested in acquiring 16 percent stake in Sodastream. According to analysts, a stake in Sodastream presents a perfect opportunity for PepsiCo, Inc. (NYSE:PEP) in the at-home soda investment.
PepsiCo beats expectations
In the latest quarterly report, PepsiCo, Inc. (NYSE:PEP) delivered financial performance that demolished Wall Street expectations. The company reported Q12014 revenue of $12.6 billion, exceeding the Wall Street estimate of $12.4 billion. However, revenue remained flat year-over-year. Profit in the quarter came in at $1.2 billion, increasing 13 percent over the corresponding quarter a year ago. Earnings per share were $0.79, beating Wall Street estimate by 4 cents.
On the back of the strong Q12014, the company looks forward to an even stronger fiscal 2014 where revenue is expected to grow significantly, while EPS is projected to jump 7 percent over the figure realized in 2013.
