Soft Drink Industry
EXECUTIVE SUMMARY
In the first half of the
This is an excerpt from the paper...
In the first half of the 1990s, domestic volume in the soft drink industry is projected to grow at the rate 4.5 percent per year. For the diet drinks, however, growth is projected in the 11.5 percent range, while growth of only 2.5 percent is projected for the regular, sugar flavored colas. Internation ally, growth projections for the industry are even stronger, with a 9.0 to 11.0 percent annual growth rate projected for the first half of the 1990s.The increasing acceptance and popularity of diet soft drinks indicate that growth in per capita consumption of soft drinks will continue in the coming decade, in spite of significant demographic changes, because the diet soft drinks appeal to older consumers, as well as to teenagers. The demographics of the American population are changing significantly. With respect to the soft drink industry, the most important changes are (1) the aging of the baby boom generation, which fueled the rapid growth of the industry in the 1960s and 1970s, and (2) the declining proportion of teenagers in the population, the age group the industry had hoped would fuel its growth in the 1980s and 1990s. In 1990, six soft drink manufacturers account for more than four fifths of the total market. These six manufacturers are Coca Cola, Pepsico, Seven Up, Dr. Pepper, Crush and A&W Brands. Of these six companies, three Seven Up, Dr. Pepper, and Crush are owned by either conglomerates or investment organization
. . .
ose sole business is bottling Coca Cola products. The Coca Cola Company retained a 49 percent interest in Coca Cola Enterprises, with the remaining shares offered publicly. Coca Cola Enterprises net revenues in 1989 were 8$4.0 billion. Thus, the comparable revenue total at Coca Cola was $13.0 billion.
Both firms are also soft drink companies, but both par ticularly PepsiCo are much more than soft drink companies. At PepsiCo, soft drink operations contribute only 36 percent of total revenues, and only 32 percent of profits (Standard & Poor's, 1988b, 1802b). Restaurant operations (PepsiCo is the world's largest operator of restaurants) contributed as much to revenue as did soft drink operations 36 percent, and snack food operations contributed signficantly more to profits 41 percent than did soft drink operations (Standard & Poor's, 1988b, 1802b).
At Coca Cola, soft drink operations contributed 81 percent of revenues, and 96 percent of profits (Standard & Poor's, 1988a, 562b). It is evident that Coca Cola is far more depen dent on soft drink operations than is PepsiCo., but is equally as evident that Coca Cola is by far the largest soft drink firm of the two. Both Coca Cola and PepsiCo are perceived as Amer
. . .
Some common words found in the essay are:
Nevertheless Chandler, INDUSTRY NORM, Coca Cola PepsiCo, Pepper Crush, EXECUTIVE SUMMARY, Data Coca Cola, Data PepsiCo, Coca Cola Enterprises, Standard Poor's, OPPORTUNITIES THREATS, soft drink, , , drink industry, soft drinks, soft drink industry, ratio data, branca 1990b, calculated data obtained, 1989 1988 1987, ============================================================= item, data coca cola, item 1989, 1989 1988, 1987 1986 1985,
Approximate Word count = 4147
Approximate Pages = 17 (250 words per page)
More Essays on Soft Drink Industry
EXECUTIVE SUMMARY
In the first half of the
|
Customer Service
to Over
32,000 Professionally Written Papers!!!
