Here is the reason why: Carbonated and sugary beverages have fallen out of fashion with millennials. Millennials are realizing that sugary beverages are the modern-day equivalent of the cigarette and they are wising up to the health impacts.
This trend is having a DIRECT impact on the financials of both Coca-Cola and Pepsi. Revenue and net income are showing a strong NEGATIVE trend. Coke and Pepsi for years have tried to diversify to "healthier" alternatives or to diversify to related product markets. The strategies have failed to stop the bleeding or to replace the lost revenue and net income. I don't see this trend reversing any time soon as I see this to be a long-term demographic trend. The younger generation are more educated in terms of the health impacts of excess sugar.
At the current prices, both KO and PEP are overvalued.
Submitted June 08, 2018 at 03:06AM by JasonMckennan5425234 https://ift.tt/2sRkuj3
