Analyst Prefers Pepsi Over Coke: CNBC (KO, PEP)

In an interview with CNBC, Philip Gorham, stock analyst at Morningstar, has given his thoughts on the decision by Coca Cola Company (NYSE: KO), and PepsiCo (NYSE: KO) to acquire their bottlers.

Gorham said, “All sparkling drinks have been in decline for the last 10 years or so, but cola’s falling at a faster rate.” Gorham expects the two companies to focus more on non-carbonated drinks in the future, and advises investors to look for strong brand portfolios.

Personally, Gorham prefers PepsiCo over Coca Cola as he believes that consumer demand for snacks has proved to be counter-cyclical.

Gorham said, “And with the consumers reigning in their spending, they’ve eaten more at home and that means buying a big bag of chips to take home.”