More than 50 years ago, PepsiCo (PEP) began making concentrate in Ireland because of the country’s low corporate tax rate, but that strategy is now backfiring as the concentrate for nearly all U.S. sales of Pepsi and Mountain Dew is subject to a 10% tariff, Laura Cooper of Wall Street Journal reports. While Coca-Cola (KO) for decades has also produced concentrate in Ireland, the company makes most of the concentrate for its American sodas in Atlanta and Puerto Rico, a U.S. territory, the Journal points out. This puts PepsiCo at a disadvantage against Coca-Cola, according to the paper.
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