Jim Cramer's Wall Street Confidential Mar. 23
Pepsico (NYSE: PEP - News), Coke (NYSE: KO - News)
Cramer says that though he has criticized Pepsico's Frito Lay for having unhealthy snacks, after visiting its plant in Aberdeen, Maryland, he sees that healthy food is not just an "ancillary business" but their main focusą„¤ "They have taken all the fats out of almost every single one of the Frito-Lay lines by themselves," he said adding their new vegetable snacks taste great. Their competitors are lagging behind as PEP is grabbing 60% market share, and Cramer predicts they will reach 70%. One factory runs six and a half days a week because "they cannot keep up with demand" for healthy snack foods. While the carbonated beverage business is bad in the U.S., it is growing overseas by single digits for Coke and by double digits for Pepsi. The cause of the problem is energy, but Pepsi was prepared; "They are using 30% less energy than they did 10 years ago ... and they are still taking it down," Cramer said. "I like this story very much."
Published by SeekingAlpha
Cramer says that though he has criticized Pepsico's Frito Lay for having unhealthy snacks, after visiting its plant in Aberdeen, Maryland, he sees that healthy food is not just an "ancillary business" but their main focusą„¤ "They have taken all the fats out of almost every single one of the Frito-Lay lines by themselves," he said adding their new vegetable snacks taste great. Their competitors are lagging behind as PEP is grabbing 60% market share, and Cramer predicts they will reach 70%. One factory runs six and a half days a week because "they cannot keep up with demand" for healthy snack foods. While the carbonated beverage business is bad in the U.S., it is growing overseas by single digits for Coke and by double digits for Pepsi. The cause of the problem is energy, but Pepsi was prepared; "They are using 30% less energy than they did 10 years ago ... and they are still taking it down," Cramer said. "I like this story very much."
Published by SeekingAlpha
Labels: Hot Stocks, Jim Cramer, KO, PEP
posted by Stock Administrator @ 9:36 AM
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