Move Over Pepsi, There's Officially a New No. 2 Soda Behind Coca-Cola

Core Insights - The Coca-Cola Company and PepsiCo have been in a long-standing competition known as the Cola Wars, with recent developments indicating a shift in market positions [1][10] - Keurig Dr Pepper has reportedly matched Pepsi in market share for carbonated beverages, marking a significant change after nearly 40 years [10][11] - Despite the shift in rankings, Pepsi's diverse product portfolio, including snacks, continues to support its profitability [6][15] Market Position - Dr Pepper has overtaken Pepsi in carbonated beverage sales volume, with both brands holding an 8.3% market share in 2023, while Coca-Cola leads with 19.2% [11][10] - In the year 2000, Pepsi held a 13.5% market share compared to Dr Pepper's 6.3%, highlighting a significant change over the past two decades [11] Financial Performance - Keurig Dr Pepper's earnings per share (EPS) have more than doubled over the last five years, and its dividend growth has outpaced many peers, although its price-to-earnings (P/E) ratio has halved [5][13] - The current dividend yield for Keurig Dr Pepper is approximately 2.5%, which is near its historical highs, indicating potential for future earnings growth [13] Business Strengths - Pepsi's snack division, particularly Frito-Lay North America, accounted for 57% of its operating profit in Q1 2024, underscoring the importance of its diversified portfolio [15] - Both Keurig Dr Pepper and Pepsi have strong brand portfolios, with Pepsi still holding significant positions in the market with brands like Mountain Dew and Diet Pepsi [14] Future Outlook - The growth potential for Keurig Dr Pepper lies in its diverse brand portfolio, which includes both carbonated beverages and coffee, suggesting opportunities for market share expansion [12] - Investors in Pepsi are encouraged to maintain their positions, as the company remains a major player in the consumer goods sector with ongoing profit growth, particularly in international markets [16][17]