The Frito-Lay division of
) recently introduced a snack under its popular brand Cheetos.
The new product called Cheetos Mix-Ups includes a mix of four
cheesy Cheetos flavors in different shapes and colors in a single
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Cheetos Mix-Ups comes in two varieties, Xtra Cheezy and Cheezy
Salsa, each pack containing four different flavors. The new
product will allow consumers to enjoy four different flavors and
textures under each combination.
There is a huge demand for new snacking products that tickle the
taste buds. The introduction of these new combinations is likely
to catch the interest of Cheetos lovers.
Product innovation plays a huge role in the company's success.
PepsiCo regularly creates new flavors of existing products as
well as maintains a robust pipeline of new products. The
company had recently introduced a new flavor of potato chips
under its popular brand Ruffles. The new product brings the
flavor of the popular snack beer-battered onion rings to Ruffles
MAX beer-battered onion rings flavored potato chips.
Overall, we are encouraged by the company's strong brand
portfolio, its product and geographic diversity and solid cash
flow generation. Moreover, PepsiCo reported impressive
fourth-quarter results beating the Zacks Consensus Estimate for
both revenues and earnings. In addition, the company provided an
impressive outlook for 2013, which was in line with its long-term
targets, and also increased its dividend rate. On the other hand,
The Coca-Cola Company
), reported mixed fourth quarter results, beating the earnings
estimate but missing out on sales.
However, we prefer to remain on the sidelines as a challenging
consumer spending environment and continued sluggishness in the
North American beverage business concerns us.
PepsiCo carries a Zacks Rank #3 (Hold).
Other companies in the sector, which are better positioned at
current levels include
Coca-Cola Hellenic Bottling Company S.A.
) carrying a Zacks Rank #1 (Strong Buy) and
Coca-Cola Enterprises Inc.
) carrying a Zacks Rank #2 (Buy).