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  "documentTitle": "PepsiCo (PEP)",
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  "authorName": "Nelson Peltz",
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  "presentationDate": "2014-02-19 00:00:00",
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      "kind": "callout",
      "text": "Management cites “Power of One” benefits when arguing why snacks and beverages should remain together. We believe PepsiCo’s performance disproves the “Power of One”",
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      "text": "We believe PepsiCo’s performance disproves the “Power of One”",
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      "text": "As PepsiCo has expanded the influence of corporate, the rhetoric around “Power of One” has intensified... the fact that PepsiCo’s financial results, more than anything else, disprove “Power of One.”",
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      "text": "Last week, management announced a new five-year, $5bn productivity program through 2019. This suggests productivity is becoming a recurring fact for PepsiCo for the foreseeable future... we believe the company has bigger problems than it is admitting.",
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      "text": "Following the Q3 earnings release in October 2013, CFO Hugh Johnston told Bloomberg that beverages were “largely in-line” with competitors... If PepsiCo’s management and Board are not concerned with the trajectory of beverages... we would like to understand what we are missing.",
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      "text": "In early 2012, management put N. American beverages in a category of businesses that the company would need to fix... Yet management recently announced that not only will it retain beverages... but that there will effectively be no “structural” change.",
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      "text": "The three years of the program (2011-2014E) meaning that little or none of the cost savings have benefitted the bottom-line. This suggests that PepsiCo is either inflating its cost savings targets, execution of the productivity plan has been subpar or the company's core business continues to atrophy.",
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      "text": "Decline in Americas Beverages (32% of overall PepsiCo sales; 66% of total beverage sales)",
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