Share Dilution

it may not be Tesla or Amazon but Pepsi delivers quietly for shareholders

Recent corporate history in America has been dominated by a small group of charismatic and boisterous “big men”: Amazon’s Jeff Bezos, Tesla’s Elon Musk, Facebook’s Mark Zuckerberg. But some of its stock market champions are taking a more low-key approach to generating profits for their shareholders.

Questor doubts, for example, that many readers will know the name of Pepsi chief executive Ramon Laguarta. That’s because Pepsi doesn’t have a “big man culture – it’s not the creation of a man, a Musk or a Bezos,” says Rob Burgeman of Brewin Dolphin, the manager of Brewin Dolphin. fortune, which owns the shares on behalf of some of its clients.

“Laguarta is not someone who turns everything upside down,” adds Burgeman. “Pepsi doesn’t suddenly have a new team at the top. For us, this illustrates good governance, a good corporate culture, which has always been important at Pepsi. “

The company’s big rival is of course Coca-Cola, which is perhaps more entrenched in the public mind and can count Warren Buffett’s Berkshire Hathaway as a major shareholder. Buffett said he would never sell a single share of Coca-Cola. But Burgeman says Pepsi offers investors the best opportunity.

“Right now, Pepsi’s business case is stronger because it sells a wider variety of products,” he says. “Coca-Cola is pretty much drinks, while Pepsi offers a range of soft drinks, bottled water, and food. Its products include Gatorade, SodaStream and Quaker Oats and it boasts 23 brands that generate annual sales of over $ 1 billion (£ 700 million).


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