Shares in both Coca-Cola and PepsiCo will outperform next year, according to a city analyst. Goldman Sachs analyst Marc Cohen is reported as saying that he believes both companies are set for good years next year, with Coke in the slightly stronger position.

In an interview with CBNC on Friday, Cohen said: "I think that the outlook for Coke in 2004 is very bright." As the dollar looks set to continue trading weakly next year, and 75% of the company's income, according to Cohen, comes from overseas, Coke should see its earnings rise in 2004.

Although Pepsi should also do well next year, Cohen points out that only 20% of the company's income comes from abroad,. Cohen feels that Coke has "probably the most promise" he has seen in years.