Coke And Pepsi Of The Twenty First Century Essay

1066 Words Oct 13th, 2016 5 Pages
Coke and Pepsi in the Twenty-First Century
The average American consumes around 53 gallons of carbonated soft drinks (CSD) per year, there is around 292.8 million people in the United States, that’s 15.5184 trillion gallons of carbonated soft drink consumed in 2004. With so much CSD consumed every year in the US, it makes sense why Coke and Pepsi are fighting for market share in this $60-billion industry. In 1970’s the average American only consumed 23 gallons of CSD, but consumer consumption grow by 3% per year for the next 30 years. Because of the growth for 30 years, from 1975-1995 both Coke and Pepsi enjoyed a average annual growth rate of 10% because of how fast both the US and world’s consumption of CSD rose. CSD only consist of a flavor base, a sweetener, and carbonated water make the cost of materials and ingredients low; allowing the producers more capital to invest in to advertising, like when Pepsi launched “Pepsi Generation”. CDS are so profitable because of the four major contributors to production and distribution of CSDs: 1) how cheap it is to produce the concentrate and ship the concentrate to buyers, 2) Both Coke and Pepsi have purchased bottling companies to be their own subsidiaries and control the bottling side of the business, 3) the amount of retail clients both companies have is massive, using strategic brand partnerships like Pepsi with the NFl, 4) Both Coke and Pepsi have strong supply chains and have multiple companies competing for a contract with…

Related Documents