The Rising Influence of Rising Affluence

[DewDiligence]

PEP will not succumb to pressure from investment bankers to split up:

http://www.reuters.com/article/2011/10/12/pepsico-idUSN1E79B03O20111012

"I've looked at every single scenario you could probably come up with in terms of how PepsiCo's portfolio is constructed," Chief Financial Officer Hugh Johnston told reporters. "Taking it apart, I know, would be very, very costly and I really don't see the benefit in doing it."

He said PepsiCo gains from having both a snacks and drinks business in areas such as back-office operations, research and development and procurement, even if the snacks and drinks are not always delivered on the same trucks.

The two units are more integrated in emerging markets, where their presence is newer. But PepsiCo said it is working to bring more of those benefits to North America...

Amen. It’s too bad for shareholders of such companies as COP and ITT that their management and BoD are such easy marks for the drooling bankers.