Should PepsiCo Buy This Beaten-Down Company?

Don't let PepsiCo's (NYSE: PEP) name fool you: Although the company shares the eponym of its namesake beverage, PepsiCo can best be thought of as a food and beverages conglomerate. In fact, the company reported that the majority of net sales -- 52% -- came from its food segment last year, with beverages taking the rest. This diversification has allowed PepsiCo to outperform Coca-Cola -- mostly a pure-play soft-drink company -- over the last five years.

Pepsi's strategy makes sense considering its history. The modern-day PepsiCo was formed from a merger of then Pepsi-Cola and the Frito Lay Company. Since then, the company has continued to acquire food and beverage companies to augment growth and to strengthen its competitive position.

The next acquisition should be Hain Celestial Group (NASDAQ: HAIN).

Source: Fool.com