Gary,
One thing this spinoff does to help both the restaurants and beverage
companies, is to remove favored treatment. In other words, the restaurants are free to negotiate with all (KO, for example), for the
best deal on soda syrup & supplies. Pepsi, on the other hand, will have much more freedom to deal with competetive restaurants to install
their product. I know this will be a big factor in the international
market. Currently, int'l restaurant franchises can only use Pepsi products, if they are available. I am not as familiar with domestic market, but I'm sure the situation is similar.
My opinion is that the spinoff is very beneficial to both companies in the international market, and extremely postitive for Pepsi in the domestic market. Don't care much for any restaurant equities in the
saturated U.S. market. Only my opinion.
Happy trading,
Caricom |
