The Cola War: Coca Cola versus Pepsi
Summary :
Table of Contents
- Reasons for profitability in soft work.
- Concentrate business VS bottling business.
- The consequences of the war between Coke and Pepsi on the industry.
- Can Pepsi & Coke sustain their profit in the wake of a flattening demand.
- Conclusion.
- Bibliography.
Abstract
The soft drink industry is divided into two categories of product: the non carbonated soft drink and the carbonated soft drink (CSD). During the next 30 years, CSD consumption rose constantly and grew at an average of 3% per year. The consumption of CSD in USA is about 53 gallons per year! So the average consumption of CSD is very high and quite amazing. But since the beginning of the twenty-first century, the market of the CSD stops growing and became consequently less profitable. But fortunately, on the other hand, the market of non carbonated drink explodes. So thanks these new opportunities and the important consumption of soft drinks which rises constantly, we can say that nowadays soft drink industry is always very profitable and can induce huge profits. Otherwise, if this industry is so profitable it's because there are only few actors on this market. Indeed, coca and pepsi have almost the monopoly in the soft drink industry (In 2000, pepsi and coca made 76% of the total sells of soft drink).
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