For Pepsi and Coke, Taste Test Is Over -- Here's Why
NEW YORK (TheStreet) -- With year-to-date gains of 12.35%, PepsiCo
Pepsi stock closed Friday at $91.85, up 0.07%.
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On the other side of the isle is rival Coca-Cola
New investors continue to pile into Pepsi while Coke remains flat. The taste test results are in. And at this point, the debate as to which company is better has already been decided.
Coke has run out of innovative ideas. The company has, instead, taken a venture-capital tack to help offset weak sales. And its recent purchase of a 17% stake in Monster Beverage
Pepsi, meanwhile, which has a strong-performing beverage business of its own, has fully embraced snack foods. The company's motto says, "Bet you can't eat just one" -- referring to its Frito-Lay potato chips.
It's the snack business that's become the key to differentiating Pepsi from Coke.
Restaurants like Buffalo Wild Wings
Then there's also Taco Bell, the fast-food restaurant operated by Yum! Brands
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Since introducing the new tacos in March 2013, Taco Bell has sold more than $1 billion worth of Doritos Locos Tacos. Taco Bell's success was not lost on Buffalo Wild Wings.
Although Coke currently owns roughly 70% of the U.S. fountain beverage business, Pepsi's innovative qualities should spur more market share gains in the coming years.