Pepsico: Innovating its way to higher growth

Pepsico is a good example of a consumer staples company innovating to create new growth products. The company's prospects are looking brighter than they have been for some time.

With a few notable exceptions - such as Unilever and Reckitt Benckiser - I like branded consumer staples businesses as investments. You are unlikely to make big, short term gains from owning their shares but their products are affordable and regular purchases for consumers which gives them very predictable and resilient cash flows under all but the most extreme circumstances.