The growth reflects a diverse portfolio and diverse products, "but most importantly it reflects the incredible management team we have at Pepsico," she said.
Product diversity started back in the early '90s, Nooyi said, when Pepsico shifted from being a carbonated drink company to one that sold all types of beverages. Then the trademark salty snacks, like potato chips, shifted toward healthier alternatives like baked chips, nuts, seeds and fruit snacks.
It might seem surprising, considering this move, that The Wall Street Journal reported July 19 that Nestle turned down a potential merger with Pepsico, saying Pepsico's products trended more toward junk food than Nestle likes. Cramer wanted to know if the story was true. Did Pepsico initiate a talk with Nestle, and did Nestle turn it down?
"I can appreciate the speculation and interest, and it's human nature," Nooyi said. "Unfortunately, it also sells newspapers. The reality is that our M&A strategy is clear. We've discussed it extensively on the [earnings] call, and that's all I can say about our M&A strategy."
Pepsico has also embraced a green strategy. "Performance with purpose," it's called at the company.
"Environmental stability is a critical part of that performance with purpose," Nooyi said.
The company has adopted a reduce, reuse, recycle mentality toward business that has an "incredible return on investment," both monetarily and in recruitment, Nooyi said. She claimed younger, more idealistic people want to work at Pepsico because of the company's green efforts.
"Earnings - and she is delivering earnings, and her team is delivering earnings," Cramer said. "This is the stock to own into this decline."
Jim's charitable trust owns Clorox.
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