More than 50 years ago, PepsiCo (PEP) began making concentrate in Ireland because of the country’s low corporate tax rate, but that strategy is now backfiring as the concentrate for nearly all U.S. sales of Pepsi and Mountain Dew is subject to a 10% tariff, Laura Cooper of Wall Street Journal reports. While Coca-Cola (KO) for decades has also produced concentrate in Ireland, the company makes most of the concentrate for its American sodas in Atlanta and Puerto Rico, a U.S. territory, the Journal points out. This puts PepsiCo at a disadvantage against Coca-Cola, according to the paper.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on PEP:
- PepsiCo, Hormel, Neurocrine, Exelon, Aurora: Trending by Analysts
- Reed’s CEO Norman Snyder to retire, Cyril Wallace to succeed
- Big banks report Q1 beats, China stops taking Boeing deliveries: Morning Buzz
- Soda, candy may lose Arkansas food stamp coverage as soon as next year, WSJ says
- Nike initiated, GM downgraded: Wall Street’s top analyst calls