PepsiCo eyes options for multi-billion dollar Russian business
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PepsiCo (PEP
-2.5%) is the latest consumer products multinational that is exploring options for its business in Russia.
Sources indicated that PepsiCo (NASDAQ:PEP) is looking at potentially writing off the value of the unit. The issue is tricky for the company because the large dairy business that PepsiCo (PEP) bought for about $5B more than ten years is relied on by local Russians for jobs, milk and baby formula. Russia is also the third largest contributor to PepsiCo's (PEP) revenue after the U.S. and Mexico. However, if sanctions on Russia were to go on for an extended period, PepsiCo could face pressure from institutional investors to distance itself from Russia.
PepsiCo (PEP) has underperformed the Consumer Staples Select Sector SPDR ETF and rival Coca-Cola over the last month due in part to its exposure to Russia.