NEW YORK (
Trefis ) -- PepsiCo ( PEP) is the world's second largest carbonated soft drink manufacturer and the largest packaged foods product manufacturer. PepsiCo's beverage division competes with Coca-Cola ( KO) (NYSE: KO) in virtually all subsegments of the beverage market. PepsiCo is best known for its namesake cola brand as well as its Frito-Lay products (including Doritos and Cheetos). We estimate that Pepsi brand operations constitute about 7% of the company's stock value, while Frito-Lay products generate a more substantial 42%. Our price estimate for PepsiCo stock is $67.28, in line with market price. The company is now making a greater push into healthy food options, which could expand Gatorade, Tropicana and Quaker food operations, which account for a combined 31% of our price estimate. New distribution of healthy food products in China and a low-calorie fruit puree set to test U.S. markets could spark market share gains for the company. A new Gatorade product line expected for Spring 2011 could also advance the company's market penetration, as we've previously discussed. (See: PepsiCo's Gatorade Could Grow Market Share with G Series Fit)
Pepsi will market the product in apple, grape and cherry flavors (at $2.49 to $3.49 for a 4-pack) to mothers and children. The company reportedly worked closely with its target audience to develop the product, and has high hopes for its success.