Global Current Event Of The United States Essay

1688 Words Nov 5th, 2014 null Page
ITEM 1A. GLOBAL CURRENT EVENT

It is no secret that the demand for carbonated soft drinks is declining, and rather rapidly. Several states including California and Illinois in the United States are already proposing taxes on unhealthy beverages that could potentially double the price of case of soda. The United States is not the only country taking an initiative on the soft drink epidemic. Mexico has also implemented a tax of one peso per liter of soda. To put things in perspective, this tax is about 7.6 cents. The United States is surprisingly not the only market Coca-Cola makes substantial profit off of. Believe it or not, Brazil has the third largest carbonated soft drink market in the world. With the strong soft drink resistance in one of the two most profitable countries for Coca-Cola, it is very possible that they will take advantage of what Brazil has to offer. Brazil’s beverage market documented a $43 billion net worth in 2013. According to Forbes expert estimates, they believe Coca-Cola controls almost 27% market share in Brazil’s beverage industry. The market is also expected to grow steadily around 6% by 2017. By maintaining their share in Brazil’s beverage industry, Coca-Cola has the opportunity to generate around $3 billion in retail sales each year through 2017. A major reason Coca-Cola possesses a clear advantage over their two major competitors Pepsi Co and Dr Pepper Snapple is because they sponsor major events taking place in Brazil. Coca-Cola is one of the…

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