soft drink project

INDUSTRY ANALYSIS ON SOFT DRINKS

SOFT DRINKS

DEFINITION OF SOFT DRINK

Soft drinks are non-alcoholic water-based flavoured drinks that are optionally sweetened,

acidulated and carbonated.Some carbonated soft drinks also contain caffeine; mainly the brown-

coloured cola drinks.

INTRODUCTION

Barbara Murray (2006c) explained the soft drink industry by stating, “For years the story

in the nonalcoholic sector centered on the power struggle between…Coke and Pepsi. But as the

pop fight has topped out, the industry's giants have begun relying on new product flavors…and

looking to noncarbonated beverages for growth.” In order to fully understand the soft drink

industry, the following should be considered: the dominant economic factors, five competitive

sources, industry trends, and the industry’s key factors. Based on the analyses of the industry,

specific recommendations for competitors can then be created.

DOMINANT ECONOMIC FACTORS

Market size, growth rate and overall profitability are three economic indicators that can be used

to evaluate the soft drink industry. The market size of this industry has been changing. Soft drink

consumption has a market share of 46.8% within the non-alcoholic drink industry, illustrated in

Table 1. Datamonitor (2005) also found that the total market value of soft drinks reached $307.2

billion in 2004 with a market value forecast of $367.1 billion in 2009. Further, the 2004 soft

drink volume was 325,367.2 million liters (see Table 2). Clearly, the soft drink industry is

lucrative with a potential for high profits, but there are several obstacles to overcomein order to

capture the market share.

The growth rate has been recently criticized due to the U.S. market saturation of soft drinks.

Datamonitor (2005) stated, “Looking ahead, despite solid growth in consumption, the global soft

drinks market is expected to slightly decelerate, reflecting stagnation of market prices.” The

change is attributed to the other growing sectors of the non-alcoholic industry including tea and

coffee (11.8%) and bottled water (9.3%). Sports drinks and energy drinks are also expected to

increase in growth as competitors start adopting new product lines.

Profitability in the soft drink industry will remain rather solid, but market saturation especially in

the U.S. has caused analysts to suspect a slight deceleration of growth in the industry (2005).

KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL


Because of this, soft drink leaders are establishing themselves in alternative markets such as the

snack, confections, bottled water, and sports drinks industries (Barbara Murray, 2006c). In order

for soft drink companies to continue to grow and increase profits they will need to diversify their

product offerings.

The geographic scope of the competitive rivalry explains some of the economic features found in

the soft drink industry. According to Barbara Murray (2006c), “The sector is dominated by three

major players…Coca-Cola is king of the soft drink-empire and boasts a global market share of

around 50%, followed by PepsiCo at about 21%, and Cadbury Schweppes at 7%.” Aside from

these major players, smaller companies such as Cott Corporation and National Beverage

Company make up the remaining market share. All five of these companies make a portion of

their profits outside of the United States. Table 3 shows that the US does not hold the highest

percentage of the global market share, therefore companies need to be able to compete globally

in order to be successful.

Table 4 indicates that Coca-Cola has a similar distribution of sales in Europe, North America,

and Asia. On the other hand, the majority of PepsiCo’s profits come from the United States (see

Table 5). Compared to PepsiCo, Cadbury Schweppes has a stronger global presence with their

global mix (see Table 7). Smaller companies are also trying to establish a global presence. Cott

Corporation is a good example as indicated in Table 8. The saturation of the US markets has

increased the global expansion by soft drink leaders to increase their profits.

The ease of entry and exit does not cause competitive pressure on the major soft drink

companies. It would be very difficult for a new company to enter this industry because they

would not be able to compete with the established brand names, distribution channels, and high

capital investment. Likewise, leaving this industry would be difficult with the significant loss of

money from the fixed costs, binding contracts with distribution channels, and advertisements

used to create the strong brand images. This industry is well established already, and it would be

difficult for any company to enter or exit successfully.

Three leading companies have prominent presence in the soft drink industry. The leaders include

the Coca-Cola Company, PepsiCo, and Cadbury Schweppes. According to the Coca- Cola

annual report (2004), it has the most soft drink sales with $22 billion. The Coca-Cola product

line has several popular soft drinks including Coca-Cola, Diet Coke, Fanta, Barq’s, and Sprite,

selling over 400 drink brands in about 200 nations (Murray 2006a). PepsiCo is the next top



competitor with soft drink sales grossing $18 billion for the two beverage subsidiaries, PepsiCo

Beverages North America and PepsiCo International (PepsiCo Inc., 2004). PepsiCo’s soft drink

product line includes Pepsi, Mountain Dew, and Slice which make up more than onequarter of its

sales. Cadbury Schweppes had soft drink sales of $6 billion with a product line consisting of soft

drinks such as A&W Root Beer, Canada Dry, and Dr. Pepper (Cadbury Schweppes, 2004).

SOFT DRINKS INGREDIENTS

The major ingredients of soft drinks include the following:

WATER

The major ingredient of soft drinks is water and it accounts for 86%-90% of the soft drink

composition.

AROMATIC SUBSTANCES

Aromatic substances are added to soft drinks to give a pleasant taste and better stability to the

taste. These could be natural aromatic substances like caffeine obtainable from a variety of

leaves, seeds and fruits. Identical aromatic substance can be obtained more simply and cheaply,

in purer forms from raw materials other than plant raw materials and have characteristics which

correspond exactly with their natural equivalents.

SWEETENERS

There are many different types of sweeteners like sugar (sacharose), another major ingredient in

soft drinks as it is highly nutritious and is the invaluable carrier of the fruit aromas. It is made

from sugar-beet or sugarcane or sweeteners found naturally in many fruits and vegetables. Two

simple types of sugar are found in fruits - fructose (fruit-sugar) and glucose (grape-sugar). There

are also low-calorie artificial sweeteners like

saccharin and aspartame (nutra-sweet). Saccharin, is a non-nutritious sweetener which is

extremely sweet, stable gives no energy (no calories). Aspartame is a nutrient-sweetener built up

of two amino-acids, asparagin acid and phenylalanine (200 times sweeter than saccharin).

CARBON DIOXIDE

Carbon dioxide is another important ingredient added to the soft-drinks in liquid form. It makes

the drink more refreshing through its stimulation of the mouth's mucous membranes adding a

sensation that the soft drink is colder than it actually is. The carbon dioxide also brings out the

aroma since the carbon dioxide bubbles 'drag with them' the aromatic components. It also checks

microbiological growth.



ACIDS

The most common acids used in soft drinks are citric acid, phosphoric acid and malic acid. The

function of acidity in the drink is to balance the sweetness, make the drink fresh and thirst-

quenching. CSE Report : Analysis of Pesticide Residues in Soft Drinks.

COLOURING MATTER

Colour is added to soft drinks to make them presentable and appetizing. Brown drinks are

colored with caramel (when sugar is heated, its colour changes to brown, it becomes less sweet

and acquires a burnt taste) or betakarotin, which is also the dominant colouring agent in carrots

and oranges.

PRESERVATIVES

Preservatives like natrium benzoate and potassium sorbate are added to increase the life of the

product. Sulphur dioxide can also be used as a preservative.

ANTIOXIDANTS

Antioxidants are substances, which prevent reactions that destroy aromatic substances in soft

drinks. The most common antioxidant used is ascorbic acid, i.e. Vitamin C

OTHER ADDITIVES

Emulsifying agents, stabilizing agents, and thickening agents are also added so that the contents

of the drinks remain evenly distributed. Examples of stabilizing agents and thickening agents are

pectin, which is obtained from citrus fruits or apples, and alginates and carraghen, which is

obtained from algae.



CHAPTER 2

COMPANY PROFILE OF TEA INDUSTY

1. PEPSI

2. COCO COLA

3. Canada Dry

4. NESTLE

5. DR PEPPER SNAPPLE GROUP

6. RED BULL

7. Kirin Brewery Company

8. Asahi Soft Drinks

9. Ito En

10. Cott



2.1.PEPSI

HISTORY

The pharmacy of Caleb Bradham, with a Pepsi dispenser, as portrayed in a New Bern

exhibition in the Historical Museum of Bern.

Pepsi was first introduced as "Brad's Drink" in New Bern, North Carolina, United States, in 1898

by Caleb Bradham, who made it at his home where the drink was sold. It was later labeled Pepsi

Cola, named after the digestive enzyme pepsin and kola nuts used in the recipe.[2] Bradham

sought to create a fountain drink that was delicious and would aid in digestion and boost energy

In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore to a rented warehouse.

That year, Bradham sold 7,968 gallons of syrup. The next year, Pepsi was sold in six-ounce

bottles, and sales increased to 19,848 gallons. In 1909, automobile race pioneer Barney Oldfield

was the first celebrity to endorse Pepsi-Cola, describing it as "A bully drink...refreshing,

invigorating, a fine bracer before a race." The advertising theme "Delicious and Healthful" was

then used over the next two decades.[4] In 1926, Pepsi received its first logo redesign since the

original design of 1905. In 1929, the logo was changed again.

In 1931, at the depth of the Great Depression, the Pepsi-Cola Company entered bankruptcy - in

large part due to financial losses incurred by speculating on wildly fluctuating sugar prices as a

result of World War I. Assets were sold and Roy C. Megargel bought the Pepsi trademark

Megargel was unsuccessful, and soon Pepsi's assets were then purchased by Charles Guth, the

President of Loft Inc. Loft was a candy manufacturer with retail stores that contained soda

fountains. He sought to replace Coca-Cola at his stores' fountains after Coke refused to give him

a discount on syrup. Guth then had Loft's chemists reformulate the Pepsi-Cola syrup formula.

On three separate occasions between 1922 and 1933, the Coca-Cola Company was offered the

opportunity to purchase the Pepsi-Cola company, and it declined on each occasion.

OUR MISSION

Our mission is to be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the



communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.

Our Vision

"PepsiCo's responsibility is to continually improve all aspects of the world in which we operate - environment, social, economic - creating a better tomorrow than today."

Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company.

Slice

Slice is a line of fruit-flavored soft drinks manufactured by PepsiCo and introduced in 1984, with the lemon-lime flavor replacing Teem.

Varieties of Slice[citation needed] have included apple, fruit punch, grape, passionfruit, peach glaze, Mandarin orange, pineapple, strawberry, Cherry Cola, "Red", Cherry-Lime, and Dr Slice. Until 1994, the drink contained 10% fruit juice.

The original design of the can was a solid color related to the flavor of the drink. These were replaced in 1994 with black cans that featured colorful bursts (once again, related to the flavor of the drink), along with slicker graphics. In 1997, the cans became blue with color-coordinated swirls. The original orange flavor was reformulated around this time with the new slogan, "It's orange, only twisted." Orange Slice has since been changed back to its original flavor

In the summer of 2000, lemon-lime Slice was replaced in most markets by Sierra Mist, which became a national brand in 2003. The rest of the Slice line was replaced in most markets by Tropicana Twister Soda in the summer of 2005, although the Dr. Slice variety can still be found in some fountains.

In early 2006, Pepsi resurrected the Slice name for a new line of diet soda called Slice ONE. Marketed exclusively at Wal-Mart stores, Slice ONE was available in orange, grape and berry flavors, all sweetened with Splenda.

As of 2009, Slice (orange, diet orange, grape, strawberry and peach flavors) was available solely from Wal-Mart Stores. In India, Slice is a mango flavored soft drink under the PepsiCo brand and can be bought in any general grocery store and other eatries, catering shops, promoted by a Bollywood actress, Katrina Kaif.



2.2.COCO COLA

HISTORY

THE EARLY DAYS

Coca-Cola was created in 1886 by John Pemberton, a pharmacist in Atlanta, Georgia, who

sold the syrup mixed with fountain water as a potion for mental and physical disorders. The

formula changed hands three more times before Asa D. Candler added carbonation and by

2003, Coca-Cola was the world’s largest manufacturer, marketer, and distributor of

nonalcoholic beverage concentrates and syrups, with more than 400 widely recognized

beverage brands in its portfolio.

With the bubbles making the difference, Coca-Cola was registered as a trademark in 1887

and by 1895, was being sold in every state and territory in the United States. In 1899, it

franchised its bottling operations in the U.S., growing quickly to reach 370 franchisees by

1910.10 Headquartered in Atlanta with divisions and local operations in over 200 countries

worldwide, Coca-Cola generated more than 70% of its income outside the United States by

2003 .

INTERNATIONAL EXPANSION

Coke’s first international bottling plants opened in 1906 in Canada, Cuba, and Panama.11 By

the end of the 1920’s Coca-Cola was bottled in twenty-seven countries throughout the world

and available in fifty-one more. In spite of this reach, volume was low, quality inconsistent,

and effective advertising a challenge with language, culture, and government regulation all

serving as barriers. Former CEO Robert Woodruff’s insistence that Coca-Cola wouldn’t

“suffer the stigma of being an intrusive American product,” and instead would use local

bottles, caps, machinery, trucks, and personnel contributed to Coke’s challenges as well with

a lack of standard processes and training degrading quality.12

Coca-Cola continued working for over 80 years on Woodruff’s goal: to make Coke available

wherever and whenever consumers wanted it, “in arm’s reach of desire.”13 The Second

World War proved to be the stimulus Coca-Cola needed to build effective capabilities

around the world and achieve dominant global market share. Woodruff’s patriotic

commitment “that every man in uniform gets a bottle of Coca-Cola for five cents, wherever



he is and at whatever cost to our company”14 was more than just great public relations. As a

result of Coke’s status as a military supplier, Coca-Cola was exempt from sugar rationing

and also received government subsidies to build bottling plants around the world to serve

WWII troops.15

TURN OF THE CENTURY GROWTH IMPERATIVE

The 1990’s brought a slowdown in sales growth for the Carbonated Soft Drink (CSD)

industry in the United States, achieving only 0.2% growth by 2000 (just under 10 billion

cases) in contrast to the 5-7% annual growth experienced during the 1980’s. While per capita

consumption throughout the world was a fraction of the United States’, major beverage

companies clearly had to look elsewhere for the growth their shareholders demanded. The

looming opportunity for twenty-first century was in the world’s developing markets with

their rapidly growing middle class populations.

THE WORLD’S MOST POWERFUL BRAND

Interbrand’s Global Brand Scorecard for 2003 ranked Coca-Cola the #1 Brand in the World

and estimated its brand value at $70.45 billion (See Exhibit 4). 16 The ranking’s methodology

determined a brand’s valuation on the basis of how much it was likely to earn in the future,

distilling the percentage of revenues that could be credited to the brand, and assessing the

brand’s strength to determine the risk of future earnings forecasts. Considerations included

market leadership, stability, and global reach, incorporating its ability to cross both

geographical and cultural borders.17

From the beginning, Coke understood the importance of branding and the creation of a

distinct personality.18 Its catchy, well-liked slogans19 (“It’s the real thing” (1942, 1969),

“Things go better with Coke” (1963), “Coke is it” (1982), “Can’t beat the Feeling” (1987),

and a 1992 return to “Can’t beat the real thing”) 20 linked that personality to the core values

of each generation and established Coke as the authentic, relevant, and trusted refreshment

of choice across the decades and around the globe.

INDIAN HISTORY

India is home to one of the most ancient cultures in the world dating back over 5000 years.

At the beginning of the twenty-first century, twenty-six different languages were spoken

across India, 30% of the population knew English, and greater than 40% were illiterate. At

this time, the nation was in the midst of great transition and the dichotomy between the old



India and the new was stark. Remnants of the caste system existed alongside the world’s top

engineering schools and growing metropolises as the historically agricultural economy

shifted into the services sector. In the process, India had created the world’s largest middle

class, second only to China.

A British colony since 1769 when the East India Company gained control of all European

trade in the nation, India gained its independence in 1947 under Mahatma Ghandi and his

principles of non-violence and self-reliance. In the decades that followed, self-reliance was

taken to the extreme as many Indians believed that economic independence was necessary to

be truly independent. As a result, the economy was increasingly regulated and many sectors

were restricted to the public sector. This movement reached its peak in 1977 when the Janta

party government came to power and Coca-Cola was thrown out of the country. In 1991, the

first generation of economic reforms was introduced and liberalization began.

COKE IN INDIA

Coca-Cola was the leading soft drink brand in India until 1977 when it left rather than reveal

its formula to the government and reduce its equity stake as required under the Foreign

Exchange Regulation Act (FERA) which governed the operations of foreign companies in

India. After a 16-year absence, Coca-Cola returned to India in 1993, cementing its presence

with a deal that gave Coca-Cola ownership of the nation's top soft-drink brands and bottling

network. Coke’s acquisition of local popular Indian brands including Thums Up (the most

trusted brand in India21), Limca, Maaza, Citra and Gold Spot provided not only physical

manufacturing, bottling, and distribution assets but also strong consumer preference. This

combination of local and global brands enabled Coca-Cola to exploit the benefits of global

branding and global trends in tastes while also tapping into traditional domestic markets.

Leading Indian brands joined the Company's international family of brands, including Coca-

Cola, diet Coke, Sprite and Fanta, plus the Schweppes product range. In 2000, the company

launched the Kinley water brand and in 2001, Shock energy drink and the powdered

concentrate Sunfill hit the market.

From 1993 to 2003, Coca-Cola invested more than US$1 billion in India, making it one of

the country’s top international investors.22 By 2003, Coca-Cola India had won the

prestigious Woodruf Cup from among 22 divisions of the Company based on three broad

parameters of volume, profitability, and quality. Coca-Cola India achieved 39% volume



growth in 2002 while the industry grew 23% nationally and the Company reached breakeven

profitability in the region for the first time.23 Encouraged by its 2002 performance,

Coca-Cola India announced plans to double its capacity at an investment of $125 million

(Rs. 750 crore) between September 2002 and March 2003.24 Coca-Cola India produced its

beverages with 7,000 local employees at its twenty-seven wholly-owned bottling operations

supplemented by seventeen franchisee-owned bottling operations and a network of twenty-nine

contract-packers to manufacture a range of products for the company. The complete

manufacturing process had a documented quality control and assurance program including over

400 tests performed throughout the process .

The complexity of the consumer soft drink market demanded a distribution process to

support 700,000 retail outlets serviced by a fleet that includes 10-ton trucks, open-bay three

wheelers, and trademarked tricycles and pushcarts that were used to navigate the narrow

alleyways of the cities.25 In addition to its own employees, Coke indirectly created

employment for another 125,000 Indians through its procurement, supply, and distribution

networks. Sanjiv Gupta, President and CEO of Coca-Cola India, joined Coke in 1997 as Vice

President, Marketing and was instrumental to the company’s success in developing a brand

relevant to the Indian consumer and in tapping India’s vast rural market potential. Following

his marketing responsibilities, Gupta served as Head of Operations for Company-owned

bottling operations and then as Deputy President. Seen as the driving force behind recent

successful forays into packaged drinking water, powdered drinks, and ready-to-serve tea and

coffee, Gupta and his marketing prowess were critical to the continued growth of the

Company.

OUR MISSION

Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company

and serves as the standard against which we weigh our actions and decisions.

To refresh the world...

To inspire moments of optimism and happiness...

To create value and make a difference.

OUR VISION



Our vision serves as the framework for our Roadmap and guides every aspect of our business by

describing what we need to accomplish in order to continue achieving sustainable, quality

growth.

FIVE COMPETITIVE FORCES FOR COCA-COLA COMPANY

The soft drink industry is very competitive for all corporations involved, with the greatest

competition being that from rival sellers within the industry. All soft drink companies have to

think about the pressures; that from rival sellers within the industry, new entrants to the industry,

substitute products, suppliers, and buyers.

The competitive pressure from rival sellers is the greatest competition that Coca-Cola faces in

the soft drink industry. Coca-Cola, Pepsi Co., and Cadbury Schweppes are the largest

competitors in this industry, and they are all globally established which creates a great amount of

competition. Though Coca-Cola owns four of the top five soft drink brands (Coca-Cola, Diet

Coke, Fanta, and Sprite), it had lower sales in 2005 than did PepsiCo (Murray, 2006c).

However, Coca-Cola has higher sales in the global market than PepsiCo. In 2004, PepsiCo

dominated North America with sales of $22 billion, whereas Coca-Cola only had about $6.6

billion, with more of their sales coming from overseas, as shown in Table 4 and Table 5.

PepsiCo is the main competitor for Coca-Cola and these two brands have been in a power

struggle for years (Murray, 2006c).

Brand name loyalty is another competitive pressure. The Brand Keys’ Customer Loyalty

Leaders Survey (2004) shows the brands with the greatest customer loyalty in all industries. Diet

Pepsi ranked 17th and Diet Coke ranked 36th as having the most loyal customers to their brands.

Refer to List 15 for the brand loyalty rankings of the various competitors. The new competition

between rival sellers is to create new varieties of soft drinks, such as vanilla and cherry, in order

to keep increasing sales and enticing new customers (Murray, 2006c).

New entrants are not a strong competitive pressure for the soft drink industry. Coca-Cola

and Pepsi Co dominate the industry with their strong brand name and great distribution channels.

In addition, the soft-drink industry is fully saturated and growth is small. This makes it very

difficult for new, unknown entrants to start competing against the existing firms. Another barrier

to entry is the high fixed costs for warehouses, trucks, and labor, and economies of scale. New

entrants cannot compete in price without economies of scale. These high capital requirements

and market saturation make it extremely difficult for companies to enter the soft drink industry;



therefore new entrants are not a strong competitive force (Murray, 2006c).

Substitute products are those competitors that are not in the soft drink industry. Such substitutes

for Coca-Cola products are bottled water, sports drinks, coffee, and tea. Bottled water and sports

drinks are increasingly popular with the trend to be a more health conscious consumer. There are

progressively more varieties in the water and sports drinks that appeal to different consumers’

tastes, but also appear healthier than soft drinks. In addition, coffee and tea are competitive

substitutes because they provide caffeine. The consumers who purchase a lot of soft drinks may

substitute coffee if they want to keep the caffeine and lose the sugar and carbonation. Specialty

blend coffees are also becoming more popular with the increasing number of Starbucks stores

that offer many different flavors to appeal to all consumer markets.

It is also very cheap for consumers to switch to these substitutes making the threat of substitute

products very strong (Datamonitor, 2005). Suppliers for the soft drink industry do not hold much

competitive pressure. Suppliers to Coca-Cola are bottling equipment manufacturers and

secondary packaging suppliers. Although Coca-Cola does not do any bottling, the company owns

about 36% of Coca-Cola Enterprises which is the largest Coke bottler in the world (Murray,

2006a). Since Coca-Cola owns the majority of the bottler, that particular supplier does not hold

much bargaining power. In terms of equipment manufacturers, the suppliers are generally

providing the same products. The number of equipment suppliers is not in short supply, so it is

fairly easy for a company to switch suppliers. This takes away much of suppliers’ bargaining

power.

The buyers of the Coca-Cola and other soft drinks are mainly large grocers, discount

stores, and restaurants. The soft drink companies distribute the beverages to these stores, for

resale to the consumer. The bargaining power of the buyers is very evident and strong. Large

grocers and discount stores buy large volumes of the soft drinks, allowing them to buy at lower

prices. Restaurants have less bargaining power because they do not order a large volume.

However, with the number of people are drinking less soft drinks, the bargaining power of

buyers could start increasing due to decreasing buyer demand (Murray, 2006a).

Porter’s Five Forces Model identifies the five forces of competition for any company.

The recognition of the strength of these forces helps to see where Coca-Cola stands in the

industry. Of the five forces, rivalry within the soft drink industry, especially from PepsiCo, is

the greatest source of competition for Coca-Cola.



INDUSTRY CHANGES

The soft drink industry is affected by macroenvironmental factors of the industry that will

lead to change. First, the entry/exit of major firms is a trend in the industry that will likely lead

to change. More specifically, merger and consolidation has been prevalent in the soft drinks

market, causing some firms to exit the industry and then re-enter themselves. Several leading

companies have been looking to drive revenue growth and improve market share through the

increased economies of scale found through mergers and acquisitions. One specific example is

how PepsiCo acquired Quaker Oats, who bought Gatorade which will help expand PepsiCo’s

energy drink sector (Datamonitor, 2005). This trend has increased competition as firms’

diversification of products is increasing.

A second trend in the macroenvironment is globalization. With the growing use of the internet

and other electronic technologies, global communication is rapidly increasing. This is 10

allowing firms to collaborate within the country market and expand into world markets. It has

driven competition greatly as companies strive to be first-movers. Specifically, the global soft

drink market’s compound annual growth rate (CAGR) is expected to expand to 3.6% from 2004

to 2009 (Datamonitor, 2005).

Third, changing societal concerns, attitudes, and lifestyles are important trends. In the United

States and Europe, people are becoming more concerned with a healthy lifestyle.

“Consumer awareness of health problems arising from obesity and inactive lifestyles represent a

serious risk to the carbonated drinks sector” (Datamonitor, 2005, p. 15). The trend is causing the

industry’s business environment to change, as firms are differentiating their products in order to

increase sales in a stagnant market. Thus, the long-term industry growth rate, the fourth trend,

shows low growth in recent years. Since 2000, the CAGR is 1.5 per cent (Datamonitor, 2005).

The low growth rates are of concern for soft drink companies, and several are creating new

strategies to combat the low rates.

This leads to the fifth trend of growing buyer preferences for differentiated products. Because

soft drinks have been around since as early as 1798 (American Beverage Association, 2006),

buyers want innovation with the products they buy. In today’s globalizing society, being

plain is not good enough. According to Barbara Murray (2006c), “The key for all of these

beverage companies is differentiation. The giants have new formulations and appearances.

Whatever the strategy, be it a new color, flavor, or formula, companies will strive to create the



greatest brand awareness in the minds of the consumer in the hopes of crowding out its

competitors.” Thus, the last trend, product innovation, is necessary to combat buyers need for a

variety of tastes. Firms are already differentiating by taste, with the Coca-Cola company as an

example. The firm’s product line includes regular Coca-Cola, Diet Coke, Diet cherry Coke,

cherry Coke, Vanilla Coke, Coca-Cola with Lime, Coca-Cola with lemon and many more

(Murray, 2006a).

KEY SUCCESS FACTORS

Key factors for competitive success within the soft drink industry branch from the trends

of the macroenvironment. Primarily, constant product innovation is imperative. A company

must be able to recognize consumer wants and needs, while maintaining the ability to adjust with

the changing market. They must keep up with the changing trends (Murray, 2006c).

Another key factor is the size of the organization, especially in terms of market share. Large

distributors have the ability to negotiate with stadiums, universities and school systems, making

them the exclusive supplier for a specified period of time. Additionally, they have the ability to

commit to mass purchases that significantly lower their costs. They must implement effective

distribution channels to remain competitive. Taste of the product is also a key factor for success.

Furthermore, established brand loyalty is a large aspect of the soft drink industry. Many

consumers of carbonated beverages are extremely dedicated to a particular product, and rarely

purchase other varieties. This stresses the importance of developing and maintaining a superior

brand image.

Price, however, is also a key factor because consumers without a strong brand

preference will select the product with the most competitive price. Finally, global expansion is a

vital factor in the success of a company within the soft drink industry. The United States has

reached relative market saturation, requiring movement into the global industry to maintain

growth

RECOMMENDATIONS

Looking towards the future, the most important recommendation to Coca-Cola is continuing

product innovation and expansion of their product line. The soft-drinks industry is fully saturated

with competitors. Also, the industry is no longer expanding, and market share is actually

decreasing as more consumers are looking to healthier options. By continually introducing new

products, Coca-Cola will be able to increase their profits and allow the company to continue to



grow. Also, having a diverse product line will make the corporation very stable,which is

appealing to investors and creditors. A second recommendation would be to sustain or increase

the global market share. Coca-Cola is very well-established globally, and is the global soft-

drinks leader. This is very important to sustain because it is the source of the majority of their

profits. If they lose global market share, their profits will decline dramatically. A final

recommendation for Coca-Cola is to maintain and try to increase their brand loyalty. Diet Coke

has the second highest brand loyalty of all the soft-drink competitors’ brands, and solid

dvertising campaigns will help maintain the brand loyalty. They can also strive to obtain higher

brand loyalty in all other brands, not solely Diet Coke. The brand loyalty is important because it

will allow Coca-Cola to sustain profits and maintain their market share.

THUMS UP

HISTORY

During the late 1970s, the American cola giant Coca-Cola abandoned operations in India rather than make a forced sale of 60% of their equity to an Indian company.[3] Following this, the Parle brothers, Ramesh Chauhan and Prakash Chauhan, along with then CEO Bhanu Vakil, launched Thums Up as their flagship drink, adding to their portfolio of older brands Limca (lime flavour) and Gold Spot (orange flavour). Thums Up was basically a cola drink, but the company never claimed it as such. The formula was just as closely guarded as the famous Coke formula. During the same time, the owners of Coca-Cola’s bottling plant, Pure Drinks Ltd., launched Campa Cola and Campa Orange, both of which had a higher dose of carbon dioxide.

Manmad Hill

Typical bottle of Thums Up

The Thums Up logo was a red 'thumbs up' hand gesture with a slanted white sans-serif typeface. This would later be modified by Coca-Cola with blue strokes and a more modern-looking typeface. This was mainly done to reduce the dominant red colour in their signage. Some believe Thums Up is named such so that illiterate people in India can order it with just a simple hand gesture.

The picture shows the Thums Up mountain or, Thums Up pahaad (in Hindi), Manmad hills which has a natural top like the thums up logo and is a popular sight from trains. Its famous caption until the early 1980s was, “Happy days are here again”, coined by then famous copywriter Vasant Kumar, whose father was spiritual philosopher U. G. Krishnamurti. The caption became "I want My Thunder." It is currently "Taste the thunder!"



Thums Up enjoyed a near monopoly with a much stronger market share often overshadowing its other rivals like Campa cola, Double seven and Dukes, but there were many small regional players who had their own market. It even withstood liquor giant United Breweries Group (makers of Kingfisher Beer) Mcdowell's Crush, which was another Cola drink, and Double Cola.

It was one of the major advertisers throughout the 1980s. In the mid-80’s it had a brief threat from a newcomer Double Cola which suddenly disappeared within a few years.

In 1990, when the Indian government opened the market to multinationals, Pepsi was the first to come in. Thums Up went up against the international giant for an intense onslaught with neither side giving any quarter. With Pepsi roping in major Indian movie stars like Juhi Chawla, to thwart the Indian brand, Thums Up increased its spending on Cricket sponsorship. Then the capacity went from 250ml to 300ml, aptly named MahaCola. This nickname gained popularity in smaller towns where people would ask for "Maha Cola" instead of Thums Up. The consumers were divided where some felt Pepsi’s mild taste was rather bland.

In 1993 Coca-Cola re-entered India after a prolonged absence from 1977 to 1993. But Coca-Cola’s entry made things even more complicated and the fight became a three-way battle. That same year, in a move that baffled many, Parle sold out to Coke for a meagre US$ 60 million (considering the market share it had). Some assumed Parle had lost the appetite for a fight against the two largest cola brands; others surmised that the international brands seemingly endless cash reserves psyched-out Parle. Either way, it was now Coca-Cola’s, and Coke has a habit of killing brands in its portfolio that might overshadow it. Coca-Cola soon introduced its cola in cans which was all the rage in India, with Thums Up introduced alongside, albeit in minuscule numbers. Later Coca-Cola started pulling out the Thums Up brand which at that time still had more than 30% market share.

SPRITE

Sprite is a transparent, lemon-lime flavored (called "Lymon" by the company's owner), caffeine free soft drink, produced by the Coca-Cola Company. It was introduced in the United States in 1961. This was Coke's response to the popularity of 7 Up, which had begun as "Bib-Label Lithiated Lemon-Lime Soda" in 1929. It comes in a primarily silver, green, and blue can or a green translucent bottle with a primarily green and blue label. In 1978, Sprite became the market leader position in the lemon soda category.

HISTORY

Sprite was introduced to the United States in 1961 to compete against 7 Up. Early magazine advertisements promoted it as a somewhat sophisticated, tart and not-too-sweet drink mixer, to be used (similar to tonic water or ginger ale) with alcoholic beverages such as whiskey and vodka[citation needed]. In the 1980s, many years after Sprite's introduction, Coke pressured its large bottlers that distributed 7 Up to replace the soda with the Coca-Cola product. In a large part



due to the strength of the Coca-Cola system of bottlers, Sprite finally became the leader position

in the lemon soda category in 1978.[citation needed] Since the 1990s, Sprite has sponsored the NBA and used players in its advertising campaigns. Players sponsored have included Kobe Bryant, Tim Duncan, Lebron James, and Grant Hill.

Sprite's slogans in the 1960s and 1970s ranged from "Taste Its Tingling Tartness", "Naturally Tart" and "It's a Natural!". A song known as "Sprite" or "Melon-ball Bounce" was originally composed by Raymond Scott for a Sprite radio commercial around 1963, that references the "ice-tart taste" of Sprite. By the 1980s Sprite began to have a big following among teenagers, so in 1987 marketing ads for the product were changed to cater to that demographic. "I Like the Sprite in You" was their first long-running slogan. Many versions of the jingle were made during that time to fit various genres. The slogan was used until 1994.

In 1994, Sprite created a newer logo that stood out from their previous logos. The main coloring of the product's new logo was blue blending into green with silver "splashes", and subtle small white bubbles were on the background of the logo. The word "Sprite" had a blue backdrop shadow on the logo, and the words "Great Lymon Taste!" were removed from the logo. This was the official US logo until 2007. During 1994, the slogan was also changed to "Obey Your Thirst" and was set to the urban crowd with a hip-hop theme song. One of the first lyrics for the new slogan were, "Never forget yourself 'cause first things first, grab a cold, cold can, and Obey your thirst."

OUR MISSION

Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions.

To refresh the world... To inspire moments of optimism and happiness... To create value and make a difference.

OUR VISION

Our vision serves as the framework for our Roadmap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth.

MOUNTAIN DEW

Mountain Dew (currently stylized as MTN Dew) is a carbonated soft drink brand produced and owned by PepsiCo. The original formula was invented in the 1940s by Florida beverage bottlers Barney and Barney Hartman and was first marketed in Marion, VA, Knoxville and Johnson City, Tennessee. A revised formula was created by Bill Bridgforth in 1958. The Mountain Dew brand



and production rights were acquired by the Pepsi-Cola company in 1964, at which point its distribution expanded more widely across the United States.

Between the 1940s and 1980s, Mountain Dew consisted of a single citrus-flavored version. Diet Mountain Dew was introduced in 1988, followed by Mountain Dew Red which was introduced - and discontinued - in 1988. While Mountain Dew Red was short-lived, it represented the beginning of a long-term trend of Mountain Dew being produced in different flavor variations. In 2001, though, a cherry flavor called Code Red was made and saw a great success. This product line extension trend has continued after the success of Code Red, with expansion into specialty, limited time production, region-specific, and retailer-specific (Taco Bell, 7-Eleven) variations of Mountain Dew.

Production was first extended to the UK in 1996, though this initial debut was short-lived as it was phased out in 1998. The product returned to the UK under the name "Mountain Dew Energy" in 2010 and returned to the Republic of Ireland in Spring 2011.[4] As of 2009, Mountain Dew represented a 6.7 percent share of the overall carbonated soft drinks market in the U.S. Its competition includes Vault, Mello Yello, and Sun Drop; Mountain Dew accounts for eighty percent of citrus soft drinks sold within the U.S.

PepsiCo (known then as The Pepsi-Cola Company) acquired the Mountain Dew brand in 1964, and shortly thereafter in 1973 the logo was modified as the company sought to shift its focus to a “younger, outdoorsy” generation. This direction continued as the logo remained the same through the 1970s, 80s and into the late 1990s. Later updates to the logo were made in 1999 and again in 2005.[3] On October 15, 2008, the Mountain Dew logo was redesigned to "Mtn Dew" within the U.S. market, as a result of a PepsiCo rebranding of its core carbonated soft-drink products.[7] However, the variant flavors continued to use the previous design until May 2011, when it was revealed that the "Code Red", "LiveWire", "Voltage", and "Baja Blast" flavor variants would be given redesigned packaging, including new logos to correspond with the "Mtn Dew" style. The returning flavors "Pitch Black" "Supernova" "Typhoon" and "Game Fuel" were given redesigned packaging and logos for their re-release.

VISION AND MISSION

Pepsico’s overall mission is to increase the value of their shareholders investment they do this thought sales growth, cost controls and wise investment of resources. They believe their commercial success depends upon offering quality and value to their consumers and customers providing product that are safe, wholesome, economically efficient and environmentally sound and providing a fair return to their investors while adhering to the highest standards of integrity



2.3.CANADA DRY

Canada Dry is a brand of soft drinks owned since 2008 by the Texas-based Dr Pepper Snapple Group. For over a century Canada Dry has been known for its ginger ale, though the company also manufactures a number of other soft drinks and mixers. Although Canada Dry originated in its namesake country, it is now produced in many countries around the globe, including the United States, the Middle East, Europe and Japan.

The "Dry" in the brand's name refers to not being sweet, as in a dry wine. When John J. McLaughlin, who first formulated "Canada Dry Pale Ginger Ale", originally made his new soft drink, it was far less sweet than other ginger ales then available; as a result, he labeled it "dry".

HISTORY

In 1890, Canadian pharmacist and chemist, John J. McLaughlin of Enniskillen, Ontario (Hamlet) opened a carbonated water plant in Toronto. McLaughlin was the oldest son of Robert McLaughlin, founder of McLaughlin Carriage and McLaughlin Motor Car. In 1904, McLaughlin created "Canada Dry Pale Ginger Ale"; three years later the drink was appointed to the Royal Household of the Governor General of Canada, and the label featuring a beaver atop a map of Canada was replaced with the present Crown and shield

When McLaughlin began shipping his product to New York in 1919, it became so popular that he opened a plant in Manhattan shortly thereafter. After McLaughlin's death, the company was run briefly by Sam. P. D. Saylor and Associates who bought the business from the McLaughlin family in 1923 and formed Canada Dry Ginger Ale, Inc., a public company

Canada Dry's popularity as a mixer began during Prohibition, when its flavor helped mask the taste of homemade liquor. In the 1930s, Canada Dry expanded worldwide, and from the 1950s onward, the company introduced a larger number of products.

Norton Simon took an interest in the company in 1964, and it merged with Simon's other holdings, the McCall Corporation and Hunt Foods, to form Norton Simon Inc. Dr Pepper bought Canada Dry from Norton Simon in 1982.[citation needed] In 1984, Dr Pepper was acquired by Forstmann Little & Company, and Canada Dry was sold to R. J. Reynolds' Del Monte Foods unit to pay off acquisition debt.[citation needed] RJR Nabisco sold its soft drink business to Cadbury Schweppes in 1986. Today, Canada Dry is owned by Dr Pepper Snapple Group, which was spun-off from Cadbury Schweppes in 2008.



OUR VISION

An indispensable source of mainstream and niche products that provide our customers what their customers demand.

OUR MISSION

We will serve our customers on a first name basis, as trusted business partners, keeping their best interests in mind; and faithfully provide prompt, reliable service via products that grow their business today and into the future.



2.4.NESTLE

The company dates to 1867 when two separate Swiss enterprises were founded that would later form the core of Nestlé. In the succeeding decades, the two competing enterprises aggressively expanded their businesses throughout Europe and the United States.

In August 1867 Charles and George Page, two brothers from Lee County, Illinois, USA, established the Anglo-Swiss Condensed Milk Company in Cham, Switzerland. Their first British operation was opened at Chippenham, Wiltshire, in 1873.

In September 1867 in Vevey Henri Nestlé developed a milk-based baby food, and soon began marketing it. The following year saw Daniel Peter begin seven years of work perfecting his invention, the milk chocolate manufacturing process. Nestlé's was the crucial cooperation that Peter needed to solve the problem of removing all the water from the milk added to his chocolate and thus preventing the product from developing mildew. Henri Nestlé retired in 1875 but the company under new ownership retained his name as Farine Lactée Henri Nestlé.

Henri Nestlé.

In 1877 Anglo-Swiss added milk-based baby foods to their products and in the following year the Nestlé Company added condensed milk so that the firms became direct and fierce rivals.

In 1905 the companies merged to become the Nestlé and Anglo-Swiss Condensed Milk Company, retaining that name until 1947 when the name Nestlé Alimentana SA was taken as a result of the acquisition of Fabrique de Produits Maggi SA (founded 1884) and its holding company Alimentana SA of Kempttal, Switzerland. Maggi was a major manufacturer of soup mixes and related foodstuffs. The company’s current name was adopted in 1977. By the early 1900s, the company were operating factories in the United States, United Kingdom, Germany, and Spain. The First World War created demand for dairy products in the form of government contracts, and, by the end of the war, Nestlé's production had more than doubled.

After the war, government contracts dried up, and consumers switched back to fresh milk. However, Nestlé's management responded quickly, streamlining operations and reducing debt. The 1920s saw Nestlé's first expansion into new products, with chocolate-manufacture becoming the company's second most important activity.

The logo that Nestlé used until the 1970s.

Nestlé felt the effects of the Second World War immediately. Profits dropped from US$20 million in 1938, to US$6 million in 1939. Factories were established in developing countries, particularly in Latin America. Ironically, the war helped with the introduction of the company's newest product, Nescafé ("Nestlé's Coffee"), which became a staple drink of the US military. Nestlé's production and sales rose in the wartime economy.



The end of World War II was the beginning of a dynamic phase for Nestlé. Growth accelerated and companies were acquired. In 1947 came the merger with Maggi, a well-known manufacturer of seasonings and soups. Crosse & Blackwell followed in 1950, as did Findus (1963), Libby's (1971) and Stouffer's (1973). Diversification came with a shareholding in L'Oréal in 1974. In 1977, Nestlé made its second venture outside the food industry, by acquiring Alcon Laboratories Inc.

In 1984, Nestlé's improved bottom line allowed the company to launch a new round of acquisitions, notably American food giant Carnation and the British confectionery company Rowntree Mackintosh in 1988, which brought the Willy Wonka brand to Nestlé.

The Brazilian president, Lula da Silva, inaugurates a factory in Feira de Santana (Bahia), in February 2007.

The first half of the 1990s proved to be favourable for Nestlé. Trade barriers crumbled, and world markets developed into more or less integrated trading areas. Since 1996, there have been various acquisitions, including San Pellegrino (1997), Spillers Petfoods (1998), and Ralston Purina (2002). There were two major acquisitions in North America, both in 2002 – in June, Nestlé merged its U.S. ice cream business into Dreyer's, and in August a US$2.6 billion acquisition was announced of Chef America, the creator of Hot Pockets. In the same time-frame, Nestlé came close to purchasing the iconic American company Hershey's, one of its fiercest confectionery competitors, although the deal eventually fell through. Another recent purchase included the Jenny Craig weight-loss program, for US$600 million.

In December 2005, Nestlé bought the Greek company Delta Ice Cream for €240 million. In January 2006, it took full ownership of Dreyer's, thus becoming the world's largest ice cream maker, with a 17.5% market share.

In November 2006, Nestlé purchased the Medical Nutrition division of Novartis Pharmaceutical for $2.5B, also acquiring, in 2007, the milk-flavouring product known as Ovaltine.

In April 2007, returning to its roots, Nestlé bought US baby-food manufacturer Gerber for $5.5 billion.

In December 2007, Nestlé entered into a strategic partnership with a Belgian chocolate maker, Pierre Marcolini. Nestlé agreed to sell its controlling stake in Alcon to Novartis on 4 January 2010. The sale was to form part of a broader US$39.3 billion offer, by Novartis, for full acquisition of the world’s largest eye-care company.

On March 1, 2010, Nestlé concluded the purchase of Kraft's North American frozen pizza business for $3.7 billion.

In July 2011, Nestlé SA agreed to buy 60 percent of Hsu Fu Chi International Ltd. for about $1.7 billion.



VISION:

“Respected, Trustworthy food, Nutrition, Health and Wellness Company” To rapidly build

Nestle India as the respected and trustworthy leading food, nutrition, health and wellness

company ensuring long term sustainable and profitable

growth.

MISSION:

“ Nestle is dedicated to providing the best foods to people throughout the day,

throughout their lives, throughout the world. With our unique experience of

anticipating consumer’s needs and creating solutions, Nestle contributes to your

well-being and enhances your quality of life”.



2.5.DR PEPPER SNAPPLE GROUP

HISTORY

Beverage America and Select Beverages bottlers were purchased from the Carlyle Group in February 1998 Snapple, Mistic and Stewart's (formerly Cable Car Beverage) were sold by Triarc Companies, Inc. to Cadbury Schweppes in 2000 for $1.45 billion[5] In October of that same year, Cadbury Schweppes purchased Royal Crown from Triarc.

In 2006 and 2007, Cadbury Schweppes purchased the Dr Pepper/Seven Up Bottling Group , along with several other regional bottlers. This allowed DPS to bottle many of its own beverages and combat the recent decision by many Pepsi and Coke bottlers to drop their products. Some of the Dr Pepper/Seven Up brands are still licensed to Pepsi, Coke and independent bottlers in various regions of the United States.

In November 2007, Cadbury Schweppes announced it would take the beverages unit public. In May 2008, Cadbury Schweppes demerged its beverage holdings forming the Dr Pepper Snapple Group.

Dr Pepper Snapple Group holds naming rights to Dr Pepper Ballpark and the Dallas Stars' practice facility, the Dr Pepper Star Center, both of which are located in Frisco, Texas. It also retains non-alcoholic beverage rights to each facility's concessions as a result of the deals as well as sponsorships with the NHL franchise.

In 2008, Dr Pepper Snapple Group purchased minority interest in Big Red, Inc, makers of Big Red, NuGrape, Nesbitt's and other flavored drinks

MISSION

At Dr Pepper Snapple Group, it is our vision to be the best beverage business in the Americas. Our brands have been synonymous with refreshment, fun and flavor for generations, and our sales are poised to keep growing in the future.

Our strategy reflects and builds upon our position as the leading flavored beverage business in the U.S.

7UP

INTRODUCTION

Created by the Howdy Corporation in St. Louis, MO, 7UP was an optimistic venture from the very start. After great success with the Howdy Orange drink, company founder C.L. Grigg decided to try his luck with lemons and limes. C.L. Grigg spent more than two years testing over



11 different formulas, all in search of a drink that was refreshing enough to prove irresistible to the people of Missouri and the world at large. In 1929, C.L. Grigg’s bubbliest drink was born.

The public quickly developed a taste for Grigg’s caramel colored lemon-lime soda. Bib-Label Lithiated Lemon-Lime Soda sold, and sold well. As the drink grew more and more popular, the original name was traded in for something short and sweet. Bib-Label Lithiated Lemon-Lime Soda became known as 7UP.

Early advertising featured a winged 7UP logo with copy that read "a glorified drink in bottles only. Seven natural flavors blended into a savory, flavory drink with a real wallop." The drink was so successful by 1936 that Grigg changed the name of The Howdy Corporation to The Seven-Up Company. By the late 1940s, 7UP had become the third best-selling soft drink in the world.

In the decades to follow, 7UP developed iconic branding, setting it apart from industry front-runners. In 1967, 7UP brought the phrase UNCOLA into the national vernacular. The UNCOLA campaign set 7UP apart from its competition and became part of a counter cultural that symbolized being true to yourself and challenging the status quo.

Always at the frontier of taste and pop culture, 7UP was also among the first sodas to introduce sugar-free and caffeine free options. Through the years, advertising for 7UP featured everything from a cartoon mascot named Spot, to the "It’s an Up thing" and "Make 7UP yours" taglines.

HISTORY

7 Up was created by Charles Leiper Grigg, who launched his St. Louis-based company The Howdy Corporation in 1920.[1] Grigg came up with the formula for a lemon-lime soft drink in 1929. The product, originally named "Bib-Label Lithiated Lemon-Lime Soda", was launched two weeks before the Wall Street Crash of 1929.[2] It contained lithium citrate, a mood-stabilizing drug, until 1950.[3] It was one of a number of patent medicine products popular in the late-19th and early-20th centuries.

Philip Morris bought 7 Up in 1978, and sold it in 1986, to a group led by the investment firm Hicks & Haas. 7 Up merged with Dr Pepper in 1988; Cadbury Schweppes bought the combined company in 1995. The Dr Pepper Snapple Group was spun off from Cadbury Schweppes in 2008.

2.6.RED BULL

INTRODUCTION

Red Bull is an energy drink sold by the Austrian Red Bull GmbH, created in 1987 by the Austrian entrepreneur Dietrich Mateschitz[1]. In terms of market share, Red Bull is the most popular energy drink in the world, with 3 billion cans sold each year.[2][3] Dietrich Mateschitz



was inspired by an already existing drink called Krating Daeng which he discovered in Thailand. He took this idea, and to suit the tastes of Westerners, modified the ingredients,[4] and founded Austrian Red Bull GmbH in partnership with Chaleo Yoovidhya. Chaleo Yoovidhya invented the Thai energy drink Krating Daeng; in Thai daeng is red, and krating is the reddish brown bovine, gaur, an animal slightly larger than the bison. Red Bull is sold in a tall and slim blue-silver can. Krating Daeng is sold in Thailand and in some parts of Asia in a wider gold can with the name of Krating Daeng or Red Bull Classic.[5] Both are different products produced separately.

Their slogan is "Red Bull gives you wings"[6] and the product is marketed through advertising, tournament sponsorship (Red Bull Air Race, Red Bull Crashed Ice), sports team ownerships (Red Bull Racing, Scuderia Toro Rosso, EC Red Bull Salzburg, FC Red Bull Salzburg, Red Bull New York, RB Leipzig, Red Bull Brasil), celebrity endorsements, and with its record label, Red Bull Records, music.[7] In 2009 it was discovered that Red Bull Cola exported from Austria contained trace amounts of cocaine.[8][9][10][11][12] Red Bull has also been the target of criticism concerning the possible health risks associated with the drink.[13]

HISTORY

Red Bull cans.

Red Bull took many marketing and ingredient ideas from an energy drink in Thailand called Krating Daeng. Dietrich Mateschitz, an Austrian entrepreneur, developed the Red Bull Energy Drink brand. Mateschitz was the international marketing director for Blendax, a toothpaste company, when he visited Thailand in 1982 and discovered that Krating Daeng helped to cure his jet lag.[14] Between 1984 and 1987, Mateschitz worked with TCBG Pharmaceutical (a Blendax licensee) to adapt Krating Daeng for the European market.

At the same time Mateschitz and Chaleo Yoovidhya founded Red Bull GmbH; each investing $500,000 of savings, giving it to Ieuan Griffiths and taking a stake in the new company. Chaleo and Dietrich each held a 49% share of the new company. They gave the remaining 2% to Chaleo's son Chalerm, but it was agreed that Mateschitz would run the company.[15] The product was launched in 1987 in Austria, in a carbonated format.

In 1989, the product was expanded to its first international markets, Hungary and Slovenia.[16] It entered the United States market (via California) in 1997[16] and the Middle East in 2000.[17] In 2008, Forbes magazine listed both Chaleo and Mateschitz as being the 260th richest persons in the world with an estimated net worth of $5.0 billion.

INGREDIENTS



Red Bull contains taurine, glucuronolactone, caffeine, B vitamins, sucrose, and glucose. Red Bull sugar-free also contains aspartame, acesulfame K, and sucralose in place of sucrose and glucose.

Red Bull GmbH also manufactures Red Bull Cola, containing the coca leaf, which has sparked a controversy in Germany regarding minute traces of cocaine

MISSION

" Our mission is to be the premier marketer and supplier of Redbull in Asia, Europe, and other parts of the globe. We will achieve this mission by building long-term relationships with the people who can make it become a reality."

2.7.KIRIN BREWERY COMPANY

HISTORY

Kirin sells two of the most popular beers in Japan, Kirin Lager--the country's oldest beer brand--

and Ichiban Shibori. In the happoshu (low-malt) category, Kirin Tanrei is the top seller. Kirin

handles domestic distribution for several foreign brands, including Budweiser and Heineken.

Kirin's brewery operations also extend overseas, through strategic alliances, subsidiaries, and

affiliates, to China, Taiwan, Australia, the Philippines, Europe, New Zealand and the United

States. The company holds a 100%[1] stake in Lion Nathan Limited, a consolidated subsidiary

that is based in Australia but has particularly important operations in China. Kirin has a 48%[2]

stake in San Miguel Brewery, the dominant brewer in the Philippines. Kirin now applies its

fermentation technology to areas such as plant genetics, pharmaceuticals, and bioengineering.

Although brewing and related businesses remain the core of Kirin's activities, the company is

also involved in several other sectors: hard liquor, wine, soft drinks, and food products.

In Japanese, "kirin" can refer to giraffes, or to Qilin, mythical hooved Chinese chimerical

creatures. Kirin Brewery is named after the latter.

On July 14, 2009, Kirin announced that it was in negotiations with Suntory on a merger. On

February 8, 2010, it was announced that negotiations between the two were terminated.

On October 2011, the court has decided that Kirin can buy a majority stake in family-run

Brazilian brewer Schincariol. Kirin will buy 50.45 percent of the stakes with value $2.6 billion.



In 2010, Kirin made 23.4 percent of sales abroad, the highest abroad revenue among Japanese

brewery.

HOLDINGS OF KIRIN BREWERY COMPANY

Soft drink business

Kirin Beverage Co., Ltd.

Kinki Coca-Cola Bottling Co., Ltd.

Alcoholic beverage business

o Kirin Distillery Co., Ltd. (Renamed from Kirin-Seagram Ltd. on July 1, 2002)

o Ei Sho Gen Co., Ltd.

o Kirin Communications Stage Co., Ltd.

o Heineken Japan Co., Ltd.

MISSION

The Mission section contains a free online catalogue illustrating the use of organizational

mission statements in practice by organizations from around the world. Registered users can

explore, bookmark and comment on hundreds of referenced online resources that contain

examples of mission statements, used as management tools in actual business context.

VISION

The Vision section contains a free online catalogue illustrating the use of organizational vision

statements in practice by organizations from around the world. Registered users can explore,

bookmark and comment on hundreds of referenced online resources that contain examples of

vision statements, used as management tools in actual business context.

2.8.ASAHI SOFT DRINKS

INTRODUCTION

Asahi Soft Drinks is a soft drink company founded in 1982 and headquartered in the Azuma-

bashi district of Sumida, Tokyo, Japan.[1] It is a subsidiary of Asahi Breweries.[2][3] The



company sponsors the Asahi Soft Drinks Challengers, an American football team in the Japanese

X-League, as well as a futsal team.

HISTORY

In 1884, Mitsuya Hiranosui began being sold. After becoming an Imperially licensed beverage

company in 1909, Mitsuya Shanpen Cider began being sold. Asahi Bakushu (now Asahi Beer)

acquired the rights to manufacture and distribute Bireley's Orange and Wilkinson Tansan in

November 1951, after which it began selling them. By April 1953, Mitsuya Cider was

manufactured using only sugar for sweetener.

Bireley's began being sold in cans in March 1959. In March 1972, Mitsuya Vending Corporation

was established, and Asahi Bakushu entered the beverage vending machine business. Mitsuya

Coffee, sold in cans, was introduced in October 1981. Mitsuya Foods Corporation was

established in March 1982, and the Mitsuya Vending Corporation was merged into this new

company. This is considered the beginning of Asahi Soft Drinks.[2] The canned Mitsuya Coffee

product name was changed to "NOVA" in September 1986, and footballer Diego Maradona

began doing commercials for the coffee.

Mitsuya Foods officially changed its corporate name to "Asahi Beer Soft Drinks" in April 1987,

[2] and in November 1988, Asahi Beer Soft Drinks Manufacturing was established. The

following two years, two manufacturing plants were opened: one in Kashiwa, Chiba Prefecture

in January 1989, and one in Akashi, Hyōgo Prefecture in January 1990. In February 1990, the

canned coffee brand "NOVA" was changed to "J.O.", and Hank Aaron began doing

commercials. In September that same year, Asahi Beer Soft Drinks consolidated its western

Japan, Tōkai, and Kyūshū subsidiaries into one company called Asahi Beer Soft Drinks.

In January 1991, Asahi Beer Soft Drinks took over the drinking water business from the parent

company. The company began sales of its blended tea Asahi Jūrokucha, a blend of 16 different

teas, in March 1993. The Hokuriku manufacturing plant was opened in March 1994. Three

subsidiaries (Asahi Beer Soft Drinks, Asahi Beer Soft Drinks Manufacturing, and Hokuriku

Asahi Beer Soft Drinks Manufacturing) merged in July 1996 to form Asahi Soft Drinks in order

better focus development, manufacturing and marketing efforts.



J.O. Coffee was changed to Wonda Coffee in September 1997, and Tiger Woods began

appearing in commercials using the tag line, "Wonderful Wonda." Asahi Soft Drinks was listed

on the Tokyo Stock Exchange in August 1999. Asahi Umacha began sales on 2001-03-12 with a

commercial by Studio Ghibli, the anime studio responsible for Princess Mononoke.[4] The

Mount Fuji manufacturing plant opened in April 2001.

Tokoro George began doing commercials in October 2002 for Wonda Morning Shot, which was

previously named Asahi Sen'yō (lit. Asahi Private). Shot & Shot, a low sugar variety of Wonda,

was introduced in January 2005, and a caffeine-free variety of Asahi Jūrokucha was introduced

in February. Commercials for Asahi Jūrokucha featured the child actors Ei Morisako and Kakeru

Totani, and veteran actor, comedian and singer Ichirō Zaitsu, as well as music by Agnes Chan. A

new commercial for Wonda Morning Shot featuring Yukie Nakama and a new commercial for

Wonda Shot & Shot featuring Yūsuke Santamaria were both released in September 2005.

Takarazuka Revue actress Yuki Amami appeared in a February 2006 commercial for Asahi

Jūrokucha. In April, the unsweetened black canned coffee Wonda 100-nen Black was

introduced. In September, Daizō Harada starred as Neptune in a commercial for Wonda Shot &

Shot 69, and in November, Gyugyutto Shimikomu Collagen Water was debuted.

Also in 2006, Asahi Soft Drinks published results of a study on naturally occurring vanadium in

drinking water and its effect on mice with diabetes. The study was done in conjunction with

Asahi Breweries, Nihon Pharmaceutical University, and Tokyo Medical University, and found

that it prevented weight gain and allowed the mice to use glucose more effectively.[5] In 2007,

Asahi Soft Drinks transferred most of its vending machine operations to its sister company LB,

also owned by Asahi Breweries

ASAHI SOFT DRINKS PRODUCES A LARGE NUMBER OF DRINKS, INCLUDING THE

FOLLOWING:

Benifūki Ryokucha (green tea, limited release)

Bireley's

Bireley's Orange

Bireley's Apple

Bireley's Sarasara Tomato



Bireley's Bottle Breakfast series

Cafeo (a café au lait)

Dodekamin (vitamin drink)

Fauchon (a black tea)

Fiber 7500

Fine Straight Tea

Gyugyutto Shimikomu Collagen Water (a "diet" water containing collagen)

Ichigeki (sports drink)

Ikkyūchappa Ūroncha (Oolong tea made from top grade leaves)

Jūrokucha

Kōcha Pūarucha (a pu-erh tea)

Kuchidoke Cocoa ("kuchidoke" means "melts in your mouth", only sold during winter)

Kuromugicha (a rye tea)

VISION

We formulated Group Environmental Vision 2020 in March 2010 in order to bolster our environmental preservation activities across the Group.

2.9.ITO EN

INTRODUCTION

ITO EN, LTD. is a Japanese multinational beverage company specializing in tea production,

distribution, and sales. ITO EN is the largest green tea distributor in Japan.[1] The Ito En Group

includes subsidiaries based in Japan, The United States, and Australia.[2] Its products include

unsweetened, bottled green tea and loose leaf tea. Ito En is currently the fourth largest soft drink

producer in Japan, after Coca Cola group, Suntory Beverage, and Kirin Beverage. Ito En also

produces private label beverages for various retailers in Japan[citation needed].



Headquarters

As a result of the 2011 Tōhoku earthquake and tsunami, Ito En is currently using the slogan

"Kono tabi no Higashi Nihon Daishinsai ni yori Hisai sareta Katagata ni, tsutsushinde omimai

mōshiagemasu." 。 We wish to express our deepest condolences to those who have suffered as a

consequence of the earthquake.?) at the end of its television commercials to show its deepest

sympathies to customers who lost their families in the earthquake.[3]

HISTORY

ITO EN (North America) Inc. was founded in May 2001 and simultaneously entered the

beverage wholesale, retail, and restaurant industries. In 2002, the Teas' Tea line of unsweetened

bottled teas was launched as ITO EN's main product line for North America. A flagship store

containing the ITO EN New York store and KAI Restaurant was opened on New York's

Madison Avenue.[4]

2.10.COTT

INTRODUCTION

The Cott Corporation is a leading supplier of private label carbonated soft drinks distributing to

Canada, the United States, Mexico, the United Kingdom, and Europe. In addition to producing

many private-label beverages for retailers, Cott also has a large and growing portfolio of its own

brands. These brands include Cott, RC (excluding North America, where it is part of Dr Pepper

Snapple Group), Ben Shaws, Stars & Stripes, Vintage and Vess soft drinks. Recently, Cott has

been expanding its product line into ready-to-drink teas, sparkling and flavoured waters, sports

and energy drinks, juice drinks and smoothies. These newer Cott brands include Orient

Emporium, GL-7, Red Rain Energy and After Shock Energy.

HISTORY

The history of Cott goes back to 1923, when Cott Beverage Corporation was founded by

Solomon Cott, a Polish immigrant, and his son Harry, in Port Chester, New York. Harry Pencer,

a clothier from Montreal, Canada, began to import Cott sodas into Quebec, Canada, in 1952. In

1955 Pencer acquired the Canadian rights to the Cott label and established Cott Beverages



(Canada) Ltd., to bottle the Cott line of sodas. From 1976 to 1991, Cott expanded its distribution

throughout Canada and back into the United States and into Europe.[3] During the 1960s and

1970s, labels for its products were printed with the punning slogan "It's Cott to be good". Vess

Beverage assets and its division, Vess Specialty Packaging Company, was purchased in 1994.[4]

In 1969, the name was changed to Cott Beverages Ltd., and in 1991 to Cott Corporation.[5]

From 1992 to 1996, Cott was headed by Heather Reisman, founder of Indigo Books & Music.

In October 2000, Concord Beverages, with its Vintage brand seltzer water, was acquired from

Honickman Group.[6] In April 2007, Cott was said to be considering a bid for Cadbury

Schweppes soft drinks business.[7] In 2007, in conjunction with the premiere of the The

Simpsons Movie, Cott partnered with 7-Eleven to produce "Buzz Cola", a fictional soda found in

the The Simpsons television series.[8] In late February 2008, Cott was served notice by its key

customer, Wal-Mart, that shelf space for some soft drinks made by Cott for the world's largest

retailer would be cut back.[9] Nearly a year later in January 2009, Wal-Mart informed Cott it

was terminating a 10-year-old pact under which Cott had been supplying the company with

store-branded soft drinks.[10]

In July 2010, Cott announced its acquisition of Cliffstar Corporation, a U.S. supplier of store-

branded beverages.[11]

NATIONAL BEVERAGES

INTRODUCTION

National Beverage Corp. is a second tier U.S. beverage developer, manufacturer, and distributor

based in Fort Lauderdale, Florida focused on flavored soft drinks. [3] National Beverage Corp. is

ranked by Beverage Digest as the fifth-largest soft drink company in the United States.[4]

HISTORY

The company was formed in 1985 by Nick A. Caporella to fend off an unwanted acquision by

Victor Posner of Burnup & Sims Inc., an installer of cable television and telecommunications

systems, through trading stock between the two companies to reduce Posner's ownership level.

Caporella, now having an additional company, needed to have a business to go with it and



acquired Shasta Beverages from Sara Lee Corporation in 1985 for $40 million USD in cash and

Burnup & Sims shares. In order to make National a major player Caporella purchased Faygo, a

Midwest regional soft drink manufacturer, from Tree Sweet Products Corp. With its twelve

bottling plants, National subsidiaries branch out into bottling store brands.[3]

In 1991, National Beverage went public to sell Burnup & Sims's shares in National Beverage

which was partially successful. A Burnup & Sims stock holder sued due to Caporella's salary

from Burnup and percentage of revenue from National Beverage, forcing Caporella to spend less

time managing the company. In the early 1990s, Spree, an all-natural, carbonated soft drink, and

Big Shot, a regional, multiflavored soft drink line, were acquired. In 1992, the US Navy

contracted for the manufacture of "Sea", their ship store's brand. In the mid-1990s, juice

producer, Everfresh Beverages Inc. and WinterBrook Corp., a carbonated and still water

producer, became subsidiaries of National. WinterBrook brought three brands to the National

Beverage group of companies: Cascadia, WinterBrook Clear, and LaCROIX.[3]

VISION

National Beverage Corp. continually strives to set a higher standard for value, quality, variety

and innovation as a leader in the beverage industry

MISSION

United National Breweries (SA) (Pty) Ltd`s (UNB) mission is to retain and consolidate its

position as a leading South African manufacturer and marketer of Traditional Sorghum Beer and

alcoholic beverages, associated products and services, through profitable operations, to extend

the cause of Black Economic Empowerment and enhance the value for shareholders.

CHAPTER 3

FINANCIAL ANALYSIS

The 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 Cadbury had 1.5 billion cases sold. However, the market share shows a different



picture. Coca-Cola and PepsiCo 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 PepsiCo

have slightly decreased from 2003 to 2004. Coca-Cola’s volume has also decreased 1.0% since

2003, whereas PepsiCo’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 PepsiCo.

The American Beverage Association (2006) states that in 2004, the retail sales for the

entire soft-drink industry were $65.9 billion. Barbara Murray (2006e) analyzed the industry

averages for 2004 and average net profit margin was 11.29%. The current ratio average was

1.11 and the quick ratio average was 0.8. These figures help analyze the financial statements of

the major corporations in the industry.

As shown in Table 13, Coca-Cola has seen their net profit margin increase from 20.7% to 22.1%

from 2003 to 2004. According to Coca-Cola’s annual report (2004), 80% of their sales are from

soft drinks; therefore the total sales amount was used for their financial analysis. These figures

show that their profits are increasing, but at a slow rate. This is in line with what is happening in

the soft drink industry. The market is highly competitive and growth has remained at a stable

level. The slight increase in Coca-Cola’s profit margin is most likely from their new energy

drink product line. This industry is currently expanding rapidly, and is allowing the major

beverage companies to increase their profits.

Table 13 also shows Coca-Cola’s working capital was around $1.1 billion in 2004. This

is a large increase from 2003 at only $500 million. This shows that they have sufficient funds to

pursue new opportunities. However, their current ratio and quick ratio are a cause for concern.

A current ratio of 2 or better is considered good and Coca-Cola’s was 1.102. This number shows

that they may not have enough funds to cover short term claims. The quick ratio for 2004 was at

0.906 and is considered good when it is greater than 1. This illustrates that Coca-Cola may not

have the ability to pay short term debt without selling inventory. These two numbers are a

concern because they are not able to satisfy their short term obligations. The current and quick

ratios are in line with the industry averages, however (Murray, 2006e), Coca-Cola needs to

improve these ratios in order focus on long-term plans (Coca-Cola Company, 2004).

PepsiCo’s financial statements cannot be analyzed for only the soft drinks industry



because they do not distinguish between businesses. Over half their profits are from snacks or

other beverage items; however there are sales and profit figures for their two beverage

subsidiaries. These sales figures grew from almost $16.5 billion in 2003 to $18 billion in 2004

(Pepsi Co. Inc., 2004). Their operating profit margin also increased 1% from 2003 to 2004 as

illustrated in Table 13. This shows that beverage profits are increasing for them, but also at a

slow rate. The increase could be due to the increase in market share that the Pepsi products

gained in 2004 (Sicher 2004). The PepsiCo. Annual Report (2004) stated that beverage volume

increased 3% in 2004, but was driven by the high growth of the non-carbonated beverage

industry.

Cadbury’s current and quick ratios are very similar to those of Coca-Cola. The current

ratio and quick ratio for Cadbury Schweppes for 2004 were both 0.917 (see Table 13). Again,

the current ratio should be 2 or more, and the quick ratio should be over 1. This illustrates that

Cadbury also has difficulty paying short term debt and claims. Cadbury’s net profit margin has

increased by 0.7% from 2003 to 2004. This can be attributed to their market share growth in

2004 of 0.2% (Sicher, 2005). One ratio that is concerning is their debt to equity ratio for 2004 in

Table 13. They have almost two times as much debt as they do to equity, which means that their

funds are mainly provided by creditors as opposed to owners. This is concerning because they

owe a lot of money, and must make a decent profit to be able to pay it off. The industry average

for debt to equity is 81%, and Cadbury is far from that number (2006e). Also, Cadbury has a

negative working capital for both 2003 and 2004, meaning they have more liabilities than assets.

This shows that they do not have any funds to pursue new opportunities, as their current assets

are being used to pay off liabilities (Cadbury, 2004).

Overall, the financial statements of the three top competitors in the soft drink industry

show that the industry is highly competitive and has little growth. Net profit margins increased

for all three corporations, however only at a small rate. It also seems that all three companies

lack sufficient current and quick ratios, but are all within a reasonable range of the industry

average (2006e). This may be due to expanding their product lines to include energy drinks and

non-carbonated beverages in order to increase profits and diversify their business. The soft

drinks market is now in the matured stage of the life cycle. Growth in the industry has remained

stagnant, and the financial statements of the major corporations in the industry illustrate that their

sales and income are following this trend.



The companies are in good financial positions; gross profits and net profit margins are

continuing to increase each year. The leverage and activity ratios are all within reasonable

range. However, one area all three corporations need to improve on is the liquidity ratios. Their

quick and current ratios are low and need to be increased so they are able to meet short-term

obligations.

BALANCE SHEET OF PEPSI COMPANY

PepsiCo, Inc. and Subsidiaries (in millions except per share amounts)

December 27, 2008 and December 29, 2007 2008 2007ASSETS Current Assets Cash and cash equivalents $ 2,064 $ 910Short-term investments 213 1,571Accounts and notes receivable, net 4,683 4,389Inventories 2,522.00 2,290.00Prepaid expenses and other current assets 1,324.00 991



Total Current Assets 10,806.00 10,151.00Property, Plant and Equipment, net 11,663.00 11,228Amortizable Intangible Assets, net 732.00 796.00Goodwill 5,124.00 5,169.00Other nonamortizable intangible assets 1,128.00 1,248.00Nonamortizable Intangible Assets 6,252.00 6,417.00Investments in Noncontrolled Affiliates 3,883.00 4,354Other Assets 2,658.00 1,682.00Total Assets $ 35,994.00 $ 34,628.00LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities Short-term obligations $ 369.00 $ –Accounts payable and other current liabilities 8,273 7,602Income taxes payable 145 151Total Current Liabilities 8,787 7,753Long-Term Debt Obligations 7,858.00 4,203.00Other Liabilities 7,017.00 4,792.00Deferred Income Taxes 226 646.00Total Liabilities 23,888.00 17,394.00Commitments and Contingencies Preferred Stock, no par value 41.00 41.00Repurchased Preferred Stock (138 ) (132Common Shareholders’ Equity Common stock, par value 1 2/3 per share 30 30Capital in excess of par value 351 450Retained earnings 30,638.00 28,184.00Accumulated other comprehensive loss (4,694 ) (952Repurchased common stock, at cost) (14,122 ) (10,387Total Common Shareholders’ Equity 12,203 17,325Total Liabilities and Shareholders’ Equity $ 35,994 $ 34,628

BALANCE SHEET OF COCA COLA

31-Dec-10 31-Dec-09 31-Dec-08 Assets Current Assets Cash And Cash Equivalents 8,379,000 6,959,000 4,701,000Short Term Investments 2,820,000 2,192,000 278,000Net Receivables 4,430,000 3,758,000 3,090,000



Inventory 2,650,000 2,354,000 2,187,000Other Current Assets 3,162,000 2,226,000 1,920,000

Total Current Assets 21,579,00017,551,00

012,176,00

0Long Term Investments 7,585,000 6,755,000 5,779,000Property Plant and Equipment 14,727,000 9,561,000 8,326,000Goodwill 11,665,000 4,224,000 4,029,000Intangible Assets 15,244,000 8,604,000 8,476,000Accumulated Amortization - - - Other Assets 2,121,000 1,976,000 1,733,000Deferred Long Term Asset Charges - - -

Total Assets 72,921,00048,671,00

040,519,00

0 Liabilities Current Liabilities Accounts Payable 9,132,000 6,921,000 6,152,000Short/Current Long Term Debt 9,376,000 6,800,000 6,531,000Other Current Liabilities - - 305,000

Total Current Liabilities 18,508,00013,721,00

012,988,00

0Long Term Debt 14,041,000 5,059,000 2,781,000Other Liabilities 4,794,000 2,965,000 3,401,000Deferred Long Term Liability Charges 4,261,000 1,580,000 877,000Minority Interest 314,000 547,000 - Negative Goodwill - - -

Total Liabilities 41,918,00023,872,00

020,047,00

0 Stockholders' Equity Misc Stocks Options Warrants - - - Redeemable Preferred Stock - - - Preferred Stock - - - Common Stock 880,000 880,000 880,000

Retained Earnings 49,278,00041,537,00

038,513,00

0

Treasury Stock -27,762,000

-25,398,00

0

-24,213,00

0Capital Surplus 10,057,000 8,537,000 7,966,000



Other Stockholder Equity -1,450,000 -757,000 -2,674,000

Total Stockholder Equity 31,003,00024,799,00

020,472,00

0

Net Tangible Assets 4,094,00011,971,00

0 7,967,000

BALANCE SHEET OF NESTLE

Balance sheet Dec ' 10 Dec ' 09 Dec ' 08 Dec ' 07 Dec ' 06Sources of funds Owner's fund

Equity share capital5-Apr-

00 5-Apr-005-Apr-

00 96.42 96.42Share application money - - - - -Preference share capital - - - - -Reserves & surplus 759.00 484.85 376.93 322.01 292.47Loan funds Secured loans - - 1 2.87 16.27Unsecured loans - - - - -Total 855 581 474 421.30 405.16Uses of funds Fixed assets

Gross block 1,855 1,641 1,4051,179.7

71,058.2

7Less : revaluation reserve - - - - -Less : accumulated depreciation 842 745 652 577.96 516.48Net block 1,013 896 753 601.81 541.80Capital work-in-progress 348.91 79.63 109.17 73.70 38.24Investments 150.68 203.26 34.90 94.40 77.77Net current assets Current assets, loans & advances 1,094.70 903.36 836.86 678.69 583.45Less : current liabilities & provisions 1,751.61 1,501.18 1,259.75

1,027.31 836.10

Total net current assets -656.91 -597.82 -422.89 -348.61 -252.65Miscellaneous expenses not written - - - - -Total 855 581 474 421.3 405.16Notes: Book value of unquoted investments 150.68 203.26 34.9 94.4 77.77

BALANCE SHEET OF DR PEPPER SNAPPLE GROUP



AssetsFiscal year is January-December. 2006 2007 2008 2009 2010 Cash & Short Term Investments $35M $67M $214M $280M $315MCash Only - 67M - - 315MShort-Term Investments - - - - - Total Accounts Receivable 1.16B 2.19B 583M 572M 571MAccounts Receivables, Net 580M 597M 532M 540M 536MAccounts Receivables, Gross 594M 617M 545M 540M 536MBad Debt/Doubtful Accounts (14M) (20M) (13M) - -Other Receivables 584M 1.59B 51M 32M 35MInventories 300M 325M 263M 262M 244MFinished Goods 214M 245M 235M 193M 184MWork in Progress 5M 0 0 4M 5MRaw Materials 105M 110M 78M 105M 97MProgress Payments & Other (24M) (30M) (50M) (40M) (42M)Other Current Assets 133M 157M 177M 165M 179MMiscellaneous Current Assets 133M 157M 177M 165M 179MTotal Current Assets 1.63B 2.74B 1.24B 1.28B 1.31BNet Property, Plant & Equipment 755M 868M 990M 1.11B 1.17BProperty, Plant & Equipment - Gross 1.25B 1.47B 1.68B 1.9B 2.08BBuildings 265M 284M 272M 341M 408MLand & Improvements 79M 90M 84M 90M 81MComputer Software and Equipment 105M 125M 111M 136M 153MOther Property, Plant & Equipment - - - - -Accumulated Depreciation 499M 603M 686M 789M 913MTotal Investments and Advances 12M 13M 12M 9M 11MOther Long-Term Investments 0 0 0 0 0Long-Term Note Receivable 0 0 0 402M 419MIntangible Assets 6.83B 6.8B 5.7B 5.69B 5.68BNet Goodwill 3.18B 3.18B 2.98B 2.98B 2.98BNet Other Intangibles 3.65B 3.62B 2.71B 2.7B 2.69BOther Assets 107M 100M 564M 141M 133MTangible Other Assets 5M 4M 481M 118M 118M

Total Assets 9.35B10.53B 8.64B 8.78B 8.86B

Liabilities & Shareholders' Equity 2006 2007 2008 2009 2010ST Debt & Current Portion LT Debt 708M 128M 2M 3M 404MShort Term Debt 0 0 0 0 0Current Portion of Long Term Debt 708M 128M 2M 3M 404M Accounts Payable 256M 257M 234M 252M 298MIncome Tax Payable 12M 22M 5M 4M 18MOther Current Liabilities 715M 728M 560M 595M 618MDividends Payable - - - - 56M



Accrued Payroll 96M 127M 86M 126M 102MMiscellaneous Current Liabilities 619M 601M 474M 469M 460M Total Current Liabilities 1.69B 1.14B 801M 854M 1.34BLong-Term Debt 3.08B 2.91B 3.52B 2.96B 1.69BLong-Term Debt excl. Capitalized Leases 2.54B 2.89B 3.51B 2.95B 1.68BNon-Convertible Debt 2.54B 2.89B 3.51B 2.95B 1.68BConvertible Debt 0 0 0 0 0Capitalized Lease Obligations 543M 19M 17M 13M 10MProvision for Risks & Charges - 0 - 49M 19MDeferred Taxes 1.28B 1.32B 841M 887M 939MDeferred Taxes - Credit 1.29B 1.32B 981M 1.04B 1.08BDeferred Taxes - Debit 9M 8M 140M 151M 144MOther Liabilities 29M 136M 727M 688M 2.27BOther Liabilities (excl. Deferred Income) 29M 136M 727M 688M 758MDeferred Income - - - - 1.52B Total Liabilities 6.1B 5.51B 6.03B 5.59B 6.4BNon-Equity Reserves 0 0 0 0 0Preferred Stock (Carrying Value) 0 0 0 0 0Redeemable Preferred Stock 0 0 0 0 0Non-Redeemable Preferred Stock 0 0 0 0 0 Common Equity (Total) 3.25B 5.02B 2.61B 3.19B 2.46BCommon Stock Par/Carry Value - - 3M 3M 2M

Retained Earnings - -(430M) 87M 400M

ESOP Debt Guarantee - - - - 0Cumulative Translation Adjustment - - - (14M) 3MUnrealized Gain/Loss Marketable Securities - - - - 0Revaluation Reserves - - - - 0Treasury Stock 0 0 0 0 0 Total Shareholders' Equity 3.25B 5.02B 2.61B 3.19B 2.46BAccumulated Minority Interest 0 0 0 0 0Total Equity 3.25B 5.02B 2.61B 3.19B 2.46B

Liabilities & Shareholders' Equity 9.35B10.53B 8.64B 8.78B 8.86B

BALANCE SHEET OF RED BULL

SEASON RevenueDepartures

Expenditure

Arrivals Total

2011/2012 - 121.887.600 £ 11

-1.887.600 £

2010/201110.208.000 £ 15

13.288.000 £ 18

-3.080.000 £

2009/2010 352.000 £ 16-Jan-006.160.000 £ 15

-5.808.000 £



2008/20093.872.000 £ 13

3.608.000 £ 12 264.000 £

2007/2008 545.600 £ 105.984.000 £ 11

-5.438.400 £

2006/2007 792.000 £ 18.004.268.000 £ 17.00

-3.476.000 £

2005/2006 - 178.932.000 £ 20

-8.932.000 £

2004/2005 836.000 £ 22 - 16 836.000 £2003/2004 22.000 £ 18 - 20 22.000 £2002/2003 - 9 88.000 £ 8.00 -88.000 £2001/2002 220.000 £ 12 - 16 220.000 £2000/2001 308.000 £ 18.00 - 14.00 308.000 £1999/2000 - 14 - 9.00 -1998/1999 - 8 - 14 -1997/1998 - 8 - 5.00 -1996/1997 - 13 - 13.00 -1995/1996 352.000 £ 6 - 8.00 352.000 £1994/1995 - 10 - 10.00 -1993/1994 - 8 - 7.00 -1992/1993 - 10.00 - 8.00 -1991/1992 - 9 - 9 -1990/1991 - 7 - 8 -1989/1990 - 5 - 11 -1988/1989 - 2 - 2.00 -1987/1988 - 2 - 3 -1985/1986 - 3.00 - - -1984/1985 - 1 - 1 -1983/1984 - 1 - 3 -1982/1983 - 1.00 - - -1979/1980 - - - 2 -1978/1979 - - - 2 -1977/1978 - 1 - - -1976/1977 - - - 1 -1974/1975 - 1 - - -1972/1973 - 1 - - -1967/1968 - - 8.800 £ 1.00 -8.800 £1963/1964 - 1 - - -1962/1963 - - - 1 -1960/1961 - 1 - - -1959/1960 - - - 1 -

Total17.507.600 £ 293

44.224.400 £ 297

-26.716.800 £



BALANCE SHEET OF ASAHI SOFT DRINKS

Balance sheet Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07Sources of funds Owner's fund

Equity share capital15-Jan-

0015-Jan-

0015-Jan-

00 15.99 15.99Share application money - - - - -Preference share capital - - - - 6Reserves & surplus 202.37 188.48 185.99 278.46 265.12Loan funds

Secured loans 1,304 1,228 1,2841,072.6

2 945.56Unsecured loans 231 242 333 318.81 294.18

Total 1,753 1,675 1,8191,685.8

81,526.8

5Uses of funds Fixed assets

Gross block 2,069 2,005 2,0591,844.0

51,597.3

8Less : revaluation reserve - - - - -Less : accumulated depreciation 948 832 709 597.12 497.45

Net block 1,121 1,173 1,3501,246.9

31,099.9

3Capital work-in-progress 102.42 53.99 43.41 48.44 202.18Investments 8.39 6.99 6.39 5.92 5.92Net current assets Current assets, loans & advances 917.50 775.91 804.44 691.71 548.44Less : current liabilities & provisions 396.31 334.9 397.02 307.12 329.62Total net current assets 521.19 441.01 407.42 384.59 218.82Miscellaneous expenses not written - - 12.38 - -

Total 1,753.2

41,675.1

01,819.2

81,685.8

81,526.8

5Notes: Book value of unquoted investments - - - 5.56 5.56Market value of quoted investments 1 1 0 0.51 0.59Contingent liabilities 138 111 109 105.11 71.83Number of equity sharesoutstanding (Lacs) 1,599 1,599 1,599 1599.28 1599.28

BALANCE SHEET OF ITO EN COMPANY

Assets Cash and Short Term Investments 22,466 14,416 23,986 19,153 25,188



Total Receivables, Net 37,587 53,221 39,452 30,437 35,555 Total Inventory 27,037 33,482 22,316 23,299 24,821Prepaid Expenses 0 0 0 0 0Other Current Assets, Total 12,088 15,157 13,547 10,144 12,187

Total Current Assets 99,178116,27

6 99,301 83,033 97,751 Property/Plant/Equipment, Total - Net 62,191 61,308 57,689 56,831 55,680Goodwill, Net 14,993 15,263 12,824 13,056 13,269Intangibles, Net 8,444 8,665 8,953 9,102 9,311Long Term Investments 0 0 0 0 0Note Receivable - Long Term 0 0 0 0 0Other Long Term Assets, Total 13,702 13,852 13,689 14,362 14,289Other Assets, Total 0 0 0 0 0

Total Assets198,50

8215,36

4192,45

6176,38

4190,30

0 Liabilities and Shareholders' Equity Accounts Payable 22,982 35,544 27,027 18,378 27,271Payable/Accrued 0 0 0 0 0Accrued Expenses 19,589 20,020 18,197 15,316 18,325Notes Payable/Short Term Debt 310 10,310 310 310 310Current Port. of LT Debt/Capital Leases 8,571 7,970 7,428 6,870 6,241Other Current Liabilities, Total 7,454 5,890 7,447 4,472 6,561Total Current Liabilities 58,906 79,734 60,409 45,346 58,708 Total Long Term Debt 24,759 24,515 22,381 22,046 21,356 Deferred Income Tax 0 0 0 0 0Minority Interest 16 25 105 114 89Other Liabilities, Total 9,116 8,951 8,035 7,843 7,673

Total Liabilities 92,797113,22

5 90,930 75,349 87,826 Redeemable Preferred Stock 0 0 0 0 0Preferred Stock - Non Redeemable, Net 14,512 14,512 14,512 14,512 14,512Common Stock 12,656 12,656 12,656 12,656 12,656Additional Paid-In Capital 13,004 13,007 13,010 13,010 13,010



Retained Earnings (Accumulated Deficit) 79,202 75,573 74,735 75,153 76,479Treasury Stock - Common -4,829 -4,836 -4,865 -5,675 -5,522Unrealized Gain (Loss) -6,231 -6,188 -6,190 -6,229 -6,197Other Equity, Total -2,603 -2,583 -2,333 -2,393 -2,463

Total Equity105,71

1102,14

1101,52

5101,03

4102,47

5 Total Liabilities & Shareholders’ Equity

198,508

215,366

192,455

176,383

190,301

Total Common Shares Outstanding 89 89 89 89 89Total Preferred Shares Outstanding 34 34 34 34 34

BALANCE SHEET OF COTT COMPANY

2011 Q32011 Q2 2011 Q1 2010 Q4 2010 Q3

Period End Date10/1/201

17/2/201

1 4/2/2011 1/1/2011 10/2/2010 Stmt Source 10-Q 10-Q 10-Q 10-K 10-Q

Stmt Source Date11/4/201

18/9/201

15/11/201

13/15/201

111/10/201

0

Stmt Update Type UpdatedUpdated Updated Updated Updated

Assets Cash and Short Term Investments 28.2 24 35.8 48.2 35.4 Total Receivables, Net 260.3 300.3 250.6 213.9 246 Total Inventory 216 242.2 223.1 215.5 206.2Prepaid Expenses 30.3 32.5 31 32.7 19Other Current Assets, Total 0 0 0 0 0Total Current Assets 534.8 599 540.5 510.3 506.6 Property/Plant/Equipment, Total - Net 483.30 501.00 506.60 503.80 508.80Goodwill, Net 129.1 131.3 131.1 130.2 127.1Intangibles, Net 317 330.1 334.3 342.3 349.8Long Term Investments 0 0 0 0 0Note Receivable - Long Term 0 0 0 0 0



Other Long Term Assets, Total 36.5 32.4 40.3 42.6 44.7Other Assets, Total 0 0 0 0 0

Total Assets 1,500.701,593.8

0 1,552.80 1,529.20 1,537.00 Liabilities and Shareholders' Equity Accounts Payable 0 0 0 0 0Payable/Accrued 241.8 281.7 257.8 276.6 313.8Accrued Expenses 0 0 0 0 0Notes Payable/Short Term Debt 0 20.1 35.2 7.9 50.3Current Port. of LT Debt/Capital Leases 4.3 5.4 5.9 6 5.9Other Current Liabilities, Total 8.5 33.2 32.9 32.2 0Total Current Liabilities 254.6 340.4 331.8 322.7 370 Total Long Term Debt 602.5 603.2 604.4 605.5 606.6 Deferred Income Tax 39.3 44.5 43 43.6 18.5Minority Interest 13.7 14.1 12.3 13 13.8Other Liabilities, Total 20.5 21 21.3 22.2 19.8

Total Liabilities 930.61,023.2

0 1,012.80 1,007.00 1,028.70 Redeemable Preferred Stock 0 0 0 0 0Preferred Stock - Non Redeemable, Net 0 0 0 0 0Common Stock 395.90 395.70 395.60 395.60 395.60Additional Paid-In Capital 41.9 43.5 40.8 40.8 39.1Retained Earnings (Accumulated Deficit) 156 139.8 113.3 106.5 93.9Treasury Stock - Common -2.1 -2.1 -2.1 -3.2 -3.2Other Equity, Total -21.6 -6.3 -7.6 -17.5 -17.1Total Equity 570.1 570.6 540 522.2 508.3 Total Liabilities & Shareholders’ Equity 1,500.70

1,593.80 1,552.80 1,529.20 1,537.00

Total Common Shares Outstanding 94.43 94.18 94.08 93.7 93.68Total Preferred Shares Outstanding 0 0 0 0 0

BALANCE SHEET OF CANADA DRY



Company Balance Sheet Dec-10 Dec-09 Dec-08 Dec-07Assets

Cash and Equivalents 5.45M 4.98M11.74M

17.86M

Receivables 2.70M 2.51M 2.69M 4.47MInventories 2.28M 3.71M 5.65M 5.75MOther Current Assets 0 0 0 0

Total Current Assets10.73M

11.69M

22.12M

38.84M

Property, Plant & Equipment, Gross 3.27M 3.76M 5.46M 2.99MAccumulated Depreciation & Depletion 2.97M 2.95M 3.36M 1.91M

Property, Plant & Equipment, Net296.00K

807.00K 2.10M 1.08M

Intangibles 0 0 0173.04K

Other Non-Current Assets435.00K 1.03M 0 1.42M

Total Non-Current Assets731.00K 1.84M 2.20M 2.79M

Liabilities & Shareholder Equity

Total Assets11.46M

13.53M

24.32M

41.62M

Accounts Payable853.00K 1.40M 1.47M 6.99M

Short Term Debt 0 0153.00K

156.85K

Other Current Liabilities146.00K 69.00K 34.00K

203.38K

Total Current Liabilities 2.59M 3.16M 4.44M 7.35M

Long Term Debt 0219.00K 0 0

Deferred Income Taxes 0 0 0 0Other Non-Current Liabilities 2.00K 0 75.00K 0Minority Interest 0 0 0 0

Total Non-Current Liabilities 2.00K219.00K

396.00K

474.23K

Total Liabilities 2.59M 3.38M 4.84M 7.83MPreferred Stock Equity 0 0 0 0

Common Stock Equity 8.87M10.15M

19.48M

33.80M

Common Par 0 0 0 0

Additional Paid In Capital54.49M

49.70M

48.97M

47.85M

Cumulative Translation Adjustment 0 0 0 0



Retained Earnings

-46.07M

-39.96M

-29.41M

-14.18M

Treasury Stock 0 0 0 0

Other Equity Adjustments450.00K

418.00K

-79.00K

129.47K

Total Capitalization 8.87M10.37M

19.48M

33.80M

Total Equity 8.87M10.15M

19.48M

33.80M

Total Liabilities & Stock Equity11.46M

13.53M

24.32M

41.62M

Total Common Shares Outstanding30.42M

26.42M

26.46M

26.25M

Preferred Shares 0 0 0 0Treasury Shares 0 0 0 0

Basic Weighted Shares Outstanding27.17M

26.43M

26.34M

25.98M

Diluted Weighted Shares Outstanding27.17M

26.43M

26.34M

25.98M

BALANCE SHEET OF KIRIN BEWERY

2011 2010

Period Ending 31-Dec-1031-Dec-

09 Assets Current Assets Cash And Cash Equivalents 73,212 7,399Short Term Investments 844 717Net Receivables 52,065 27,652Inventory 51,681 29,163Other Current Assets - - Total Current Assets 176,680 64,234Long Term Investments 224 254Property Plant and Equipment 28,908 26,916Goodwill - - Intangible Assets 17,984 17,989Accumulated Amortization - - Other Assets - - Deferred Long Term Asset Charges 1,674 2,080 Total Assets 225,470 111,474



Liabilities Current Liabilities Accounts Payable 49,371 45,368Short/Current Long Term Debt 9,605 11,491Other Current Liabilities 19,353 14,197 Total Current Liabilities 78,328 71,055Long Term Debt - 7,330Other Liabilities 1,538 8,323Deferred Long Term Liability Charges 550 868Minority Interest - - Negative Goodwill - - Total Liabilities 80,417 87,576 Stockholders' Equity Misc Stocks Options Warrants - - Redeemable Preferred Stock - - Preferred Stock - - Common Stock 3,067 1,036Retained Earnings 18,807 6,386Treasury Stock - - Capital Surplus 123,249 16,574Other Stockholder Equity -71 -99 Total Stockholder Equity 145,052 23,897 Net Tangible Assets 127,068 5,908

DATA COLLECTION TECHNIQUES:

A)PRIMARY SOURCE:

Data has been mainly collected form primary sources.

The method was combination of direct personal interview backed by

questionnaires method i.e. a questionnaire being drafted and data being

collected by meeting soft drink retailers directly.



B)SECONDARY SOURCE:

Data have obtained regarding the information relates to soft drink industry profile i.e. industry

growth, present status of industrial background, govt & trade report, company records, sales

force reports etc.

CHAPTER 4

DATA ANALAYSIS

OccupationNo. of Respondents (%)

Students 36Retail shop 17Shop kiosk 22Self employed 10Working employees 15



Studen

ts

Retail s

hop

Shop ki

osk

Self e

mployed

Worki

ng employe

es05

10152025303540

No. of Respondents (%)

No. of Respondents (%

SHOWING CLASSIFICATION OF THE RESPONDENTS ON THE BASIS OF FACTORS TO CREATE

Factors to create Brand ImageNo. of Respondents (%)

News Papers 23Magazines 17T.V 35Celebrity promotion 25

News Papers

Magazines T.V Celebrity promotion

0

5

10

15

20

25

30

35

40





SHOWING CLASSIFICATION OF THE RESPONDENTS ON THE BASIS OF THEIR FACTORS

before purchasing Soft Drink:

factors influencing purchase no.of repondents (%)brand image 30taste 15prodcut range 37availability 18

no.of repondents (%)

brand imagetasteprodcut rangeavailability

SHOWING CLASSIFICATION OF THE RESPONDENTS ON THE BASIS OF HOW THEIR

Purchase Decision differs:

How differ Purchase DecisionNo. of Respondents (%)

Occasions and festivals 23Some new product is in 18Availability of product 22Current market trend 37



Occasio

ns and fe

stiva

ls

Some n

ew pro

duct is i

n

Availa

bility o

f pro

duct

Current m

arket

trend

05

10152025303540





65%

35%

Preference of soft drinks

Cola Non-cola




46%

27%

27%

In Cola Based

Coca Cola Thums upPepsi


48%

16%

16%

11%

9%

in Non cola Based

Sprite Fanta Mirinda7Up Limca



30%

22%17%

14%

7%6%

4%

Advertisement which likes more

Pepsi Coca Cola Thums Up DewFanta Mirinda 7up

COMAPARATIVE ANALYSIS OF SOFT DRINKS COMPANIES

COMPANY NAMEPROFIT(%)

1. PEPSI 35

2. COCO COLA 30

3. Canada Dry 28

4. NESTLE 195. DR PEPPER SNAPPLE GROUP 15

6. RED BULL 19

7. Kirin Brewery Company 17

8. Asahi Soft Drinks 23

9. Ito En 26

10. Cott 13



PROFIT(%)

1. PEPSI2. COCO COLA3. Canada Dry4. NESTLE5. DR PEPPER SNAPPLE GROUP6. RED BULL7. Kirin Brewery Company8. Asahi Soft Drinks9. Ito En10. Cott

CHAPTER 5

FINDINGS AND SUGGESTION

ACCORDING TO SCIENTIFIC STUDIES COKE AND PEPSI TO STOP

PRODUCTION AND DISTRIBUTION OF ALL THEIR PRODUCTS, WHICH HAVE

PROVED THAT THEY ARE HARMFUL


soft drink project

Documents

lt debt capital leases

capital retained earnings

american beverage association

referenced online resources

actual business context

mitsuya vending corporation

written total notes

missionour roadmap starts