soft drinks: Market share of soft drinks

Tuesday, 17 July 2012

Market share of soft drinks

he carbonated beverage industry is a highly competitive global industry as illustrated in the financial statements. According to John Sicher of Beverage Digest (2005), Coca-Cola was the number one brand with around 4.5 billion cases sold in 2004. Pepsi followed with 3.2 billion cases, and Cad bury had 1.5 billion cases sold. However, the market share shows a different picture. Coca-Cola and Pepsi Co control the market share with Coca-Cola holding 43.1% and Pepsi with 31.7% (see Graph 1); however these market shares for both Coca-Cola and Pepsi Co have slightly decreased from 2003 to 2004. Coca-Cola’s volume has also decreased 1.0% since 2003, whereas Pepsi Co’s volume has increased 0.4% (see Graph 1). Diet Coke posted a 5% growth, but Coca-Cola’s other top 10 brands declined (Sicher, 2005). Overall, Coca-Cola’s market position has declined in 2004. The strategic group map (see Graph 1) also shows the growth of Cott Corp. of 18% which is significantly higher than that of Coca-Cola and Pepsi Co.