The Financial Taste Test: Coke vs. Pepsi

Good Morning DINKS.  Today we are going to discuss two of the biggest beverage brands in the world, and determine if your personal preference is the same as your financial taste.  Finance is personal, which means that it is an individual choice for everyone.  Do you separate your financial life from your personal life?  We all choose which stocks we want to buy, and in which companies we want to invest.




If you really like a company as an individual consumer, would it influence your financial decision to buy stock in that company?  Your personal decision to buy individual stocks may be based solely on financial data; however it may also be based on personal preference.

According to a recent post on CNN the Coca Cola Company now holds the number one, and the number two spots of the most popular carbonated soft drinks.  Coke has always held the number one spot and until recently Pepsi held the number two spot.  However, with the emergence of Diet Coke into the number two spot, the Coca Cola Company now holds both the number one and the number two spots of the most carbonated soft drinks.

I am a long time faithful drinker of Diet Coke, and my family has always been faithful to the Coca Cola Company.  I decided to visit both the Pepsi Cola Company Website as well as the Coca Cola Company Website; it was very evident that Pepsi is a business while Coca Cola is a brand.

Here are some facts about the Coca Cola Company:

The Coca Cola Company is an American Company that was established in Atlanta.  The first president acquired the Coca Cola Company in 1891 for approximately $2300.  They have been in business for over 125 years and Coca Cola is currently sold in 200 Countries.  There are over 1.7 billion Coca Cola products served each day.

Coca Cola has 49 consecutive years with increased dividends.  The Stock Ticker Symbol is KO.  Coca Cola currently offers 3500 products that include soft drinks including Fanta, bottled water, sports drinks, energy drinks such as Full Throttle, Juices such as Fuze as well as various teas and coffee.

Here are some facts about the Pepsi Cola Company:

The Pepsi Cola Company was founded in North Carolina in 1898.  The Pepsi website has a completely different approach than the Coca Cola Website.  Pepsi’s motto is “Something for Everyone.”  The website is focused towards a younger crowd.  It is fun and interactive with links to Twitter, Face Book, and You Tube. There is also a Pepsi Shop where visitors can purchase Pepsi clothing.

The Pepsi Cola Company has several beverage products that include waters, carbonated soft drinks, energy drinks that include Amp, dairy based drinks, and ready to drink teas and coffees which include SoBe, Lipton, and Starbucks

The rivalry between Coca Cola and Pepsi started many years ago.  In 1931 after its second bankruptcy the Pepsi Cola Company was sold to a man who was looking to end his current business relationship with Coca Cola but not alienate clients and loose business.

I didn’t like the format of Pepsi’s website. It was not user friendly as their Legacy timeline was in a PDF format as opposed to HTML. Coca Cola had its stock price and symbol on the website, corporate information was nowhere to be found on the Pepsi website.

It’s interesting to note that Pepsi Cola Company declared bankruptcy twice, and was sold during the dirty thirties while Coca Cola was expanding into different countries.  It is also interesting to know that both beverages were created by a pharmacist and both companies were founded by Americans.

Which stock would you buy?

Kristina Tahnyak

Tahnya is a Certified Financial Planner and former Investment Advisor turned marketing and communications professional She holds a degree from Concordia University, is debt free and currently works in the field of digital marketing.