Analyst: Beverage Sector "Not Sexy" Investment?

Friday, 8 Dec 2006 | 10:20 AM ET

The beverage sector is fairing well of late with news of acquisitions and executive promotions within the major players. The Dow Jones beverage index has gained 3% this week and more than 12% year to date. And Coca-Cola and Pepsi are up 5% and 2% respectively. So--will this "long drink" of market success continue to last?

John Faucher is Senior Analyst of U.S. Beverages for JP Morgan. He was on "Squawk on the Street." He said Coke is recovering from tough times and doing well. But he says Pepsi actually has more upside for growth.

Faucher said overall growth in the industry is fine--but that it's just not a "sexy" industry for investors right now. He also said a lower U.S. dollar doesn't necessarily mean growth in foreign markets for soft drinks.

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