Mike Musso: If Coca-Cola Doesn’t Want to Sell Food, Then Here’s Who Should Buy the Company – The Street.com
Mike Musso was featured inTheStreet.com‘s article titled “If Coca-Cola Doesn’t Want to Sell Food, Then Here’s Who Should Buy the Company.”
“Frito has established itself as an insurmountable brand,” said Michael Musso, managing director of Conway MacKenzie’s Consumer Packaged Goods practice. He also spent 13 years at PepsiCo, four of which specifically at Frito Lay.
Musso said even if Coke gears itself up with a few snack brands, it will be difficult for the company to compete with PepsiCo’s Frito Lay business, which dominates some 80% of the overall snack food industry.
“Coke needs diversification or it needs to be acquired,” Musso said, who thinks the logical buyer would be beer king Anheuser Busch Inbev (BUD) . “If anyone has the resources to compete with [PepsiCo], it’s Anheuser Busch.”
If Coke decides to stay independent, Musso thinks Coke should target snack giant Mondelez (MDLZ) , the maker of Oreo, Triscuit and Chips Ahoy!, as a possible acquisition that could help it compete with PepsiCo.
“Mondelez has a number of brands that would complement Coke,” Musso said.