Replies to post #3271 on The Rising Influence of Rising Affluence

[DewDiligence]

Pepsi Shares Farming Expertise with China

[This announcement appears to be partly propaganda and partly a real investment decision.]

http://www.reuters.com/article/2011/09/19/pepsico-idUSS1E78I08P20110919

›Mon Sep 19, 2011 8:33am EDT

Sept 19 (Reuters) - PepsiCo Inc (PEP) said on Monday it plans to work with the Chinese government to promote sustainable farming and speed the development of China's rural areas, its latest effort to raise its profile in a growing market.

PepsiCo said its memorandum of understanding with China calls for the company and the Ministry of Agriculture to build and operate demonstration farms and promote best practices to China's farmers. The demo farms will use advanced irrigation, fertilization and crop management techniques.

The maker of Frito-Lay snacks, Quaker food and Tropicana orange juice said in 2010 said it would invest $2.5 billion in China over three years to expand its presence there.

Last year, Consumer Edge Research estimated that China would drive about 25 percent of global soft drink industry volume in the coming years.‹

[DewDiligence]

Analysts are clamoring for a breakup of PEP into separate companies for foods and beverages, citing what strike me as preposterous gains in shareholder value:

http://www.bloomberg.com/news/2011-09-21/pepsico-poised-for-49-gain-imitating-kraft-breakup-real-m-a.html

My own opinion: a PEP breakup will probably add no shareholder value, but it will certainly enrich the investment bankers. Behind closed doors, the bankers must be LTAO at how gullible executives and BoD’s have become.

[DewDiligence]

PEP’s 3Q11 sales in emerging markets grew 33% YoY, including 18% growth on a same-store basis and 15% growth from the acquisition of the Russian juice company, Wimm-Bill-Dann Foods OJSC:

http://finance.yahoo.com/news/PepsiCo-Delivers-Solid-Third-prnews-2492003543.html?x=0&.v=1