Federal Restrictions of Soft Drink Beverages
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This research examines federal restrictions applied to the distribution of soft drink beverages. Specifically at issue are the soft drink interbrand competition restrictions imposed by the federal government since 1980. Interbrand competition, in this instance, refers to competition between the products of major independent producers of soft drink beverages, such as, for example, the competition between the soft drink beverage products produced by the Coca Cola Company, and similar products produced by Pepsico, Inc. Interbrand competition is contrasted with intrabrand competition, which, in the soft drink bevrage industry, refers to competition between the various soft drink beverage products produced by a single company. An example of intrabrand competition is that between "Coca Cola Classic" and "Diet Coke," both of which are produced by the Coca Cola Company.The interbrand competition restrictions imposed by the federal government concerns the distribution of soft drink beverage products. Specifically, the intent of the restrictions is to assure that the major players in the soft drink beverage industry are not able to deny to smaller producers of soft drink beverages the opportunity to distribute their products. Within this context, thus, the interbrand competition restrictions imposed by the federal government are specifically directed at the attempts of some soft drink beverage producers to impose vertical restraints with the distribution channels
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CATION OF INTERBRAND COMPETITION
RESTRICTIONS IN SOFT DRINK BEVERAGE DISTRIBUTION The soft drink beverage industry is one in which key goals are most often stated in terms of market share.12 Price promotions are widely used in the industry to build market share. Pepsico also uses extensively the taste test tactic. Pepsico also uses its restaurant acquisitions to promote soft drink market share, by restricting soft drink sales in these outlets to Pepsico products. Both companies attempt to secure exclusive distribution contracts with non owned (by either Coca Cola or Pepsico) restaurant chains. The Pepsico tactic of restricting soft drink sales in its company owned restaurants, and exclusive distribution contracts secured by both Pepsico __________
11F. W. Frailey, "FTC Takes the Fizz Out of Two Mergers," U.S. News & World Report, 30 June 1986, 41.
12Standard & Poor's, F23.and Coca Cola create difficulties for other firms in the soft drink industry.
Coca Cola has been far more successful than has Pepsico or any of the other soft drink competitors in obtaining shelf space in supermarkets and convenience stores. This success is one of the major reasons why Coca Cola has not only retained its market share lead over
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Some common words found in the essay are:
Pepsico Inc, F23and Coca Cola, Law Judge, Coca Cola Enterprises, F23 Pepsico, Coca Cola Company, soft drink, Diet Coca Cola, Prentice Hall Inc, Supreme Court, Sylvania Inc, drink beverage, soft drink beverage, interbrand competition, competition restrictions, interbrand competition restrictions, drink beverage products, distribution channel, beverage products, soft drink beverages, drink beverages, distribution soft drink, distribution soft, federal government, product distribution,
Approximate Word count = 3995
Approximate Pages = 16 (250 words per page)
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