Soft Drink Industry Analysis

Three companies dominate the alternative energy drinks market. They are PEPSICO, COCA-COLA and RED BULL. These 3 companies make up 90% of the alternative drinks market with a further 100 companies comprising of the remaining10%.We will look at each of these companies and the scope of their competitive rivalry.

PepsiCo has earned $43 billion in sales revenue in 2009 and was the fourth-largest food and beverage company in 2010. PepsiCo’s global market share was 26.5% expanded over 200 countries worldwide. This market share was over double the market share of Coca-Cola. PepsiCo are the leaders in alternative drinks market in the U.S with a 47.8% market share.

Coca-Cola is second to PepsiCo in the global alternative drinks market at 11.5%. Although it trails PepsiCo in the U.S market, Coca-Cola is more successful in the Asian market. This is due to them been able to introduce new alternative products alongside their strong established Coca-Cola brand. Another reason of success in Asia is their cheaper bottling and distribution costs which have occurred by acquiring bottling and distribution companies.

The final company to will discuss is Red Bull. As we see from the slide, they have a famous slogan “Red Bull gives you wings”. This slogan helps Red Bull to sell its energy drinks in over 160 countries. Red Bull has rapidly grown over the last decade and during this time has embarked on sponsoring sporting teams throughout the world. New York Red Bulls and Red Bull Salzburg are two soccer teams they sponsor. Red Bull has also associated itself with extreme sports like snowboarding and adventure fun events like Flugtag which is a human powered flying machine which takes part on the River Liffey in Dublin to name one location.

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