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Sales of carbonated drinks in North America fell by a percentage in the mid-single digits during the three months ended in December, 2013, according to Pepsi.
Sales of carbonated drinks in North America fell by a percentage in the mid-single digits during the three months ended in December, 2013, according to Pepsi.
(John Raoux/AP)

Pepsi cash fountain won’t slake skeptics’ thirst

PepsiCo’s cash fountain probably won’t quench skeptics’ thirst. Shares in the soft-drink giant fell more than 3 per cent in early trading on Thursday despite a promise to boost payouts to shareholders by 35 per cent this year.

A bigger stock buyback and higher dividends could inject some fizz into the investment case, but a decision to rule out major changes in the struggling North American beverages business leaves the company playing catch-up with Coca-Cola . Activist investors like Nelson Peltz will probably be looking for more.