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  "documentTitle": "PepsiCo (PEP)",
  "authorId": "06_Trian_Partners",
  "authorName": "Trian Partners",
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  "presentationDate": "2013-07-01 00:00:00",
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  "notes": "The slide uses a 'breakup-spinoff' framework to justify the potential value of a PepsiCo spin-off.",
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      "text": "If spun-off as a separate company with a dedicated management team and an intelligent capital allocation strategy, we believe PepsiCo Beverages would achieve a very attractive valuation multiple",
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      "kind": "disclaimer",
      "text": "Note: The above example is merely illustrative. Source: Capital IQ. Peer group includes Campbell, Danone, General Mills, Kellogg, Mondelez, Nestle, Smucker and Unilever. (2012-2015) consensus EBIT margins from Capital IQ.",
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      "text": "Kraft",
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      "text": "We believe PepsiCo Beverages has a stronger brand portfolio than Kraft Foods Group and would achieve a very attractive valuation multiple if spun off.",
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      "text": "Kraft Foods Group's premium valuation is supported by a safe U.S.-centric sales mix, efficient capital structure (~3x Debt/EBITDA), high dividend payout ratio (70%) and attractive dividend yield (3.5%).",
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      "text": "Based on an aggressive mindset to reduce unnecessary costs, there is an expectation management will deliver +300 bps of margin improvement in the coming years.",
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      "text": "We believe Kraft also has the ability to make future accretive acquisitions that, prior to the spin-off, were too small to move the needle.",
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      "text": "Despite a slow growth collection of businesses, Kraft Foods Group trades at a slight premium to global food peers (20x 2013e P/E vs ~18x average).",
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      "text": "Prior to the spin-off, this same N. American grocery portfolio was viewed as the weaker portion of Kraft's portfolio -> similar to how PepsiCo Beverage is viewed today.",
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      "text": "P/E multiple: 20x",
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      "kind": "title",
      "text": "Kraft Foods Group: A Case Study For PepsiCo's CashCo (PepsiCo Beverages)",
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