Вы находитесь на странице: 1из 54

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 browncoloured 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 betweenCoke and Pepsi. But as the pop fight has topped out, the industry's giants have begun relying on new product flavorsand 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 industrys 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). Because of this, soft drink leaders are establishing themselves in alternative markets such as the
KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL Page 1

INDUSTRY ANALYSIS ON SOFT DRINKS

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 playersCoca-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 PepsiCos 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, Barqs, 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). PepsiCos soft drink
KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL Page 2

INDUSTRY ANALYSIS ON SOFT DRINKS

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

KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL

Page 3

INDUSTRY ANALYSIS ON SOFT DRINKS

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 thirstquenching. 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

KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL

Page 4

INDUSTRY ANALYSIS ON SOFT DRINKS

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

KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL

Page 5

INDUSTRY ANALYSIS ON SOFT DRINKS

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

KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL

Page 6

INDUSTRY ANALYSIS ON SOFT DRINKS

"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
KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL Page 7

INDUSTRY ANALYSIS ON SOFT DRINKS

formula changed hands three more times before Asa D. Candler added carbonation and by 2003, Coca-Cola was the worlds 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 Cokes first international bottling plants opened in 1906 in Canada, Cuba, and Panama.11 By the end of the 1920s 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 Woodruffs insistence that Coca-Cola wouldnt suffer the stigma of being an intrusive American product, and instead would use local bottles, caps, machinery, trucks, and personnel contributed to Cokes challenges as well with a lack of standard processes and training degrading quality.12 Coca-Cola continued working for over 80 years on Woodruffs goal: to make Coke available wherever and whenever consumers wanted it, in arms 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. Woodruffs 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 company14 was more than just great public relations. As a result of Cokes 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 1990s brought a slowdown in sales growth for the Carbonated Soft Drink (CSD)
KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL Page 8

INDUSTRY ANALYSIS ON SOFT DRINKS

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 1980s. 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 worlds developing markets with their rapidly growing middle class populations. THE WORLDS MOST POWERFUL BRAND Interbrands 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 rankings methodology determined a brands 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 brands 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 (Its the real thing (1942, 1969), Things go better with Coke (1963), Coke is it (1982), Cant beat the Feeling (1987), and a 1992 return to Cant 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 worlds top engineering schools and growing metropolises as the historically agricultural economy shifted into the services sector. In the process, India had created the worlds 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
KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL Page 9

INDUSTRY ANALYSIS ON SOFT DRINKS

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. Cokes 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 CocaCola, 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 countrys 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

KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL

Page 10

INDUSTRY ANALYSIS ON SOFT DRINKS

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 companys success in developing a brand relevant to the Indian consumer and in tapping Indias 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,
KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL Page 11

INDUSTRY ANALYSIS ON SOFT DRINKS

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
KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL Page 12

INDUSTRY ANALYSIS ON SOFT DRINKS

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). Porters 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 PepsiCos energy drink sector (Datamonitor, 2005). This trend has increased competition as firms
KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL Page 13

INDUSTRY ANALYSIS ON SOFT DRINKS

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 markets 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 industrys 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 todays 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 firms 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
KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL Page 14

INDUSTRY ANALYSIS ON SOFT DRINKS

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 softdrinks 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
KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL Page 15

INDUSTRY ANALYSIS ON SOFT DRINKS

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-Colas 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-80s 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 Pepsis mild taste was rather bland. In 1993 Coca-Cola re-entered India after a prolonged absence from 1977 to 1993. But CocaColas entry made things even more complicated and the fight became a three-way battle. That
KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL Page 16

INDUSTRY ANALYSIS ON SOFT DRINKS

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-Colas, 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
KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL Page 17

INDUSTRY ANALYSIS ON SOFT DRINKS

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
KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL Page 18

INDUSTRY ANALYSIS ON SOFT DRINKS

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


Pepsicos 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

KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL

Page 19

INDUSTRY ANALYSIS ON SOFT DRINKS

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.

KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL

Page 20

INDUSTRY ANALYSIS ON SOFT DRINKS

2.4.NESTLE
The company dates to 1867 when two separate Swiss enterprises were founded that would later form the core of Nestl. 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 Nestl 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. Nestl'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 Nestl retired in 1875 but the company under new ownership retained his name as Farine Lacte Henri Nestl. Henri Nestl. In 1877 Anglo-Swiss added milk-based baby foods to their products and in the following year the Nestl Company added condensed milk so that the firms became direct and fierce rivals. In 1905 the companies merged to become the Nestl and Anglo-Swiss Condensed Milk Company, retaining that name until 1947 when the name Nestl 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
KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL Page 21

INDUSTRY ANALYSIS ON SOFT DRINKS

mixes and related foodstuffs. The companys 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, Nestl's production had more than doubled. After the war, government contracts dried up, and consumers switched back to fresh milk. However, Nestl's management responded quickly, streamlining operations and reducing debt. The 1920s saw Nestl's first expansion into new products, with chocolate-manufacture becoming the company's second most important activity. The logo that Nestl used until the 1970s. Nestl 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, Nescaf ("Nestl's Coffee"), which became a staple drink of the US military. Nestl's production and sales rose in the wartime economy. The end of World War II was the beginning of a dynamic phase for Nestl. 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'Oral in 1974. In 1977, Nestl made its second venture outside the food industry, by acquiring Alcon Laboratories Inc. In 1984, Nestl'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 Nestl. 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 Nestl. 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, Nestl 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, Nestl 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, Nestl 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.
KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL Page 22

INDUSTRY ANALYSIS ON SOFT DRINKS

In November 2006, Nestl 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, Nestl bought US baby-food manufacturer Gerber for $5.5 billion. In December 2007, Nestl entered into a strategic partnership with a Belgian chocolate maker, Pierre Marcolini. Nestl 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 worlds largest eye-care company. On March 1, 2010, Nestl concluded the purchase of Kraft's North American frozen pizza business for $3.7 billion. In July 2011, Nestl 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 consumers needs and creating solutions, Nestle contributes to your well-being and enhances your quality of life.

KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL

Page 23

INDUSTRY ANALYSIS ON SOFT DRINKS

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

KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL

Page 24

INDUSTRY ANALYSIS ON SOFT DRINKS

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. Griggs bubbliest drink was born. The public quickly developed a taste for Griggs 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 frontrunners. 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 "Its 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 moodstabilizing drug, until 1950.[3] It was one of a number of patent medicine products popular in the late-19th and early-20th centuries.
KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL Page 25

INDUSTRY ANALYSIS ON SOFT DRINKS

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 bluesilver 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
KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL Page 26

INDUSTRY ANALYSIS ON SOFT DRINKS

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.
KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL Page 27

INDUSTRY ANALYSIS ON SOFT DRINKS

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. Kirin Distillery Co., Ltd. (Renamed from Kirin-Seagram Ltd. on July 1, 2002) Ei Sho Gen Co., Ltd. Kirin Communications Stage Co., Ltd. Heineken Japan Co., Ltd.

Alcoholic beverage business

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
KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL Page 28

INDUSTRY ANALYSIS ON SOFT DRINKS

Asahi Soft Drinks is a soft drink company founded in 1982 and headquartered in the Azumabashi 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, Hygo 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, Tkai, and Kysh 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 Jrokucha, 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.
KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL Page 29

INDUSTRY ANALYSIS ON SOFT DRINKS

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'y (lit. Asahi Private). Shot & Shot, a low sugar variety of Wonda, was introduced in January 2005, and a caffeine-free variety of Asahi Jrokucha was introduced in February. Commercials for Asahi Jrokucha featured the child actors Ei Morisako and Kakeru Totani, and veteran actor, comedian and singer Ichir 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 Ysuke Santamaria were both released in September 2005. Takarazuka Revue actress Yuki Amami appeared in a February 2006 commercial for Asahi Jrokucha. In April, the unsweetened black canned coffee Wonda 100-nen Black was introduced. In September, Daiz 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:

Benifki Ryokucha (green tea, limited release) Bireley's Bireley's Orange Bireley's Apple Bireley's Sarasara Tomato Bireley's Bottle Breakfast series
KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL Page 30

INDUSTRY ANALYSIS ON SOFT DRINKS

Cafeo (a caf 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) Ikkychappa roncha (Oolong tea made from top grade leaves) Jrokucha Kcha Parucha (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

KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL

Page 31

INDUSTRY ANALYSIS ON SOFT DRINKS

As a result of the 2011 Thoku earthquake and tsunami, Ito En is currently using the slogan "Kono tabi no Higashi Nihon Daishinsai ni yori Hisai sareta Katagata ni, tsutsushinde omimai mshiagemasu." 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
KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL Page 32

INDUSTRY ANALYSIS ON SOFT DRINKS

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 storebranded 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

KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL

Page 33

INDUSTRY ANALYSIS ON SOFT DRINKS

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-Colas volume has also decreased 1.0% since
KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL Page 34

INDUSTRY ANALYSIS ON SOFT DRINKS

2003, whereas PepsiCos volume has increased 0.4% (see Graph 1). Diet Coke posted a 5% growth, but Coca-Colas other top 10 brands declined (Sicher, 2005). Overall, Coca-Colas 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-Colas 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-Colas 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-Colas 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-Colas 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). PepsiCos 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
KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL Page 35

INDUSTRY ANALYSIS ON SOFT DRINKS

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. Cadburys 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. Cadburys 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.
KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL Page 36

INDUSTRY ANALYSIS ON SOFT DRINKS

BALANCE SHEET OF PEPSI COMPANY


PepsiCo, Inc. and Subsidiaries (in millions except per share amounts) December 27, 2008 and December 29, 2007 ASSETS Current Assets Cash and cash equivalents Short-term investments Accounts and notes receivable, net Inventories Prepaid expenses and other current assets Total Current Assets Property, Plant and Equipment, net Amortizable Intangible Assets, net Goodwill Other nonamortizable intangible assets Nonamortizable Intangible Assets Investments in Noncontrolled Affiliates Other Assets Total Assets

2008

2007

2,064 213 4,683 2,522.00 1,324.00 10,806.00 11,663.00 732.00 5,124.00 1,128.00 6,252.00 3,883.00 2,658.00 35,994.00

910 1,571 4,389 2,290.00 991 10,151.00 11,228 796.00 5,169.00 1,248.00 6,417.00 4,354 1,682.00 34,628.00
Page 37

KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL

INDUSTRY ANALYSIS ON SOFT DRINKS

LIABILITIES AND SHAREHOLDERS EQUITY Current Liabilities Short-term obligations Accounts payable and other current liabilities Income taxes payable Total Current Liabilities Long-Term Debt Obligations Other Liabilities Deferred Income Taxes Total Liabilities Commitments and Contingencies Preferred Stock, no par value Repurchased Preferred Stock Common Shareholders Equity Common stock, par value 1 2/3 per share Capital in excess of par value Retained earnings Accumulated other comprehensive loss Repurchased common stock, at cost) Total Common Shareholders Equity Total Liabilities and Shareholders Equity

369.00 8,273 145 8,787 7,858.00 7,017.00 226 23,888.00 41.00 (138 )

7,602 151 7,753 4,203.00 4,792.00 646.00 17,394.00 41.00 (132 30 450 28,184.00 (952 (10,387 17,325

30 351 30,638.00 (4,694 ) (14,122 ) 12,203 $ 35,994 $

34,628

BALANCE SHEET OF COCA COLA


31-Dec-10 Assets Current Assets Cash And Cash Equivalents Short Term Investments Net Receivables Inventory Other Current Assets 31-Dec-09 31-Dec-08

8,379,000 2,820,000 4,430,000 2,650,000 3,162,000

6,959,000 2,192,000 3,758,000 2,354,000 2,226,000 17,551,00 0 6,755,000 9,561,000 4,224,000 8,604,000

4,701,000 278,000 3,090,000 2,187,000 1,920,000 12,176,00 0 5,779,000 8,326,000 4,029,000 8,476,000
Page 38

Total Current Assets Long Term Investments Property Plant and Equipment Goodwill Intangible Assets

21,579,000 7,585,000 14,727,000 11,665,000 15,244,000

KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL

INDUSTRY ANALYSIS ON SOFT DRINKS

Accumulated Amortization Other Assets Deferred Long Term Asset Charges

2,121,000 -

1,976,000 48,671,00 0

1,733,000 40,519,00 0

Total Assets Liabilities Current Liabilities Accounts Payable Short/Current Long Term Debt Other Current Liabilities

72,921,000

9,132,000 9,376,000 -

6,921,000 6,800,000 13,721,00 0 5,059,000 2,965,000 1,580,000 547,000 23,872,00 0

6,152,000 6,531,000 305,000 12,988,00 0 2,781,000 3,401,000 877,000 20,047,00 0

Total Current Liabilities Long Term Debt Other Liabilities Deferred Long Term Liability Charges Minority Interest Negative Goodwill

18,508,000 14,041,000 4,794,000 4,261,000 314,000 -

Total Liabilities Stockholders' Equity Misc Stocks Options Warrants Redeemable Preferred Stock Preferred Stock Common Stock Retained Earnings Treasury Stock Capital Surplus Other Stockholder Equity

41,918,000

880,000 49,278,000 -27,762,000 10,057,000 -1,450,000

880,000 41,537,00 0 25,398,00 0 8,537,000 -757,000 24,799,00 0 11,971,00 0

880,000 38,513,00 0 24,213,00 0 7,966,000 -2,674,000 20,472,00 0

Total Stockholder Equity

31,003,000

Net Tangible Assets

4,094,000

7,967,000

KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL

Page 39

INDUSTRY ANALYSIS ON SOFT DRINKS

BALANCE SHEET OF NESTLE


Balance sheet Sources of funds Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus Loan funds Secured loans Unsecured loans Total Uses of funds Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress Investments Net current assets Current assets, loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written Total Notes: Book value of unquoted investments Dec ' 10 Dec ' 09 Dec ' 08 Dec ' 07 Dec ' 06

5-Apr00 759.00 855 -

5-Apr-00 484.85

5-Apr00 376.93 1 474

96.42 322.01 2.87 421.30

96.42

292.47 16.27 405.16

581

1,855 842 1,013 348.91 150.68 1,094.70 -

1,641 745 896 79.63 203.26 903.36

1,405 652 753 109.17 34.90 836.86

1,179.7 7 1,058.27 577.96 516.48 601.81 541.80 73.70 38.24 94.40 77.77 678.69 1,027.3 1 -348.61 583.45

1,751.61 1,501.18 1,259.75 836.10 -656.91 -597.82 -422.89 -252.65 855 581 474 421.3 405.16

150.68

203.26

34.9

94.4

77.77

BALANCE SHEET OF DR PEPPER SNAPPLE GROUP


AssetsFiscal year is January-December. Cash & Short Term Investments Cash Only Short-Term Investments Total Accounts Receivable Accounts Receivables, Net Accounts Receivables, Gross Bad Debt/Doubtful Accounts Other Receivables 2006 $35M 1.16B 580M 594M (14M) 584M 2007 $67M 67M 2.19B 597M 617M (20M) 1.59B 2008 $214M 583M 532M 545M (13M) 51M 2009 $280M 572M 540M 540M 32M 2010 $315M 315M 571M 536M 536M 35M
Page 40

KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL

INDUSTRY ANALYSIS ON SOFT DRINKS

Inventories Finished Goods Work in Progress Raw Materials Progress Payments & Other Other Current Assets Miscellaneous Current Assets Total Current Assets Net Property, Plant & Equipment Property, Plant & Equipment - Gross Buildings Land & Improvements Computer Software and Equipment Other Property, Plant & Equipment Accumulated Depreciation Total Investments and Advances Other Long-Term Investments Long-Term Note Receivable Intangible Assets Net Goodwill Net Other Intangibles Other Assets Tangible Other Assets Total Assets Liabilities & Shareholders' Equity ST Debt & Current Portion LT Debt Short Term Debt Current Portion of Long Term Debt Accounts Payable Income Tax Payable Other Current Liabilities Dividends Payable Accrued Payroll Miscellaneous Current Liabilities Total Current Liabilities Long-Term Debt Long-Term Debt excl. Capitalized Leases Non-Convertible Debt Convertible Debt Capitalized Lease Obligations Provision for Risks & Charges Deferred Taxes

300M 214M 5M 105M (24M) 133M 133M 1.63B 755M 1.25B 265M 79M 105M 499M 12M 0 0 6.83B 3.18B 3.65B 107M 5M 9.35B 2006 708M 0 708M 256M 12M 715M 96M 619M 1.69B 3.08B 2.54B 2.54B 0 543M 1.28B

325M 245M

262M 193M 0 0 4M 110M 78M 105M (30M) (50M) (40M) 157M 177M 165M 157M 177M 165M 2.74B 1.24B 1.28B 868M 990M 1.11B 1.47B 1.68B 1.9B 284M 272M 341M 90M 84M 90M 125M 111M 136M 603M 686M 789M 13M 12M 9M 0 0 0 0 0 402M 6.8B 5.7B 5.69B 3.18B 2.98B 2.98B 3.62B 2.71B 2.7B 100M 564M 141M 4M 481M 118M 10.53B 8.64B 8.78B 2007 128M 0 128M 257M 22M 728M 127M 601M 1.14B 2.91B 2.89B 2.89B 0 19M 0 1.32B 2008 2M 0 2M 234M 5M 560M 86M 474M 801M 3.52B 3.51B 3.51B 0 17M 841M 2009 3M 0 3M 252M 4M 595M 126M 469M 854M 2.96B 2.95B 2.95B 0 13M 49M 887M

263M 235M

244M 184M 5M 97M (42M) 179M 179M 1.31B 1.17B 2.08B 408M 81M 153M 913M 11M 0 419M 5.68B 2.98B 2.69B 133M 118M 8.86B 2010 404M 0 404M 298M 18M 618M 56M 102M 460M 1.34B 1.69B 1.68B 1.68B 0 10M 19M 939M
Page 41

KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL

INDUSTRY ANALYSIS ON SOFT DRINKS

Deferred Taxes - Credit Deferred Taxes - Debit Other Liabilities Other Liabilities (excl. Deferred Income) Deferred Income Total Liabilities Non-Equity Reserves Preferred Stock (Carrying Value) Redeemable Preferred Stock Non-Redeemable Preferred Stock Common Equity (Total) Common Stock Par/Carry Value Retained Earnings ESOP Debt Guarantee Cumulative Translation Adjustment Unrealized Gain/Loss Marketable Securities Revaluation Reserves Treasury Stock Total Shareholders' Equity Accumulated Minority Interest Total Equity Liabilities & Shareholders' Equity

1.29B 9M 29M 29M 6.1B 0 0 0 0 3.25B -

1.32B 8M 136M 136M 5.51B 0 0 0 0 5.02B -

981M 140M 727M 727M 6.03B 0 0 0 0

1.04B 151M 688M 688M 5.59B 0 0 0 0 3.19B 3M 87M (14M) 0 3.19B 0 3.19B 8.78B

1.08B 144M 2.27B 758M 1.52B 6.4B 0 0 0 0 2.46B 2M 400M 0 3M 0 0 0 2.46B 0 2.46B 8.86B

2.61B 3M (430M) 0 0 0 3.25B 5.02B 2.61B 0 0 0 3.25B 5.02B 2.61B 9.35B 10.53B 8.64B

BALANCE SHEET OF RED BULL


SEASON 2011/2012 2010/2011 2009/2010 2008/2009 2007/2008 2006/2007 2005/2006 2004/2005 2003/2004 2002/2003 2001/2002 2000/2001 Revenue 10.208.00 0 352.000 3.872.000 545.600 792.000 836.000 22.000 220.000 308.000 Departure s 12 15 16-Jan-00 13 10 18.00 17 22 18 9 12 18.00 Expenditur e 1.887.600 13.288.000 6.160.000 3.608.000 5.984.000 4.268.000 8.932.000 88.000 Arrival s Total -1.887.600 11 -3.080.000 18 -5.808.000 15

12 264.000 -5.438.400 11 -3.476.000 17.00 -8.932.000 20 16 836.000 20 22.000 8.00 -88.000 16 220.000 14.00 308.000
Page 42

KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL

INDUSTRY ANALYSIS ON SOFT DRINKS

1999/2000 1998/1999 1997/1998 1996/1997 1995/1996 1994/1995 1993/1994 1992/1993 1991/1992 1990/1991 1989/1990 1988/1989 1987/1988 1985/1986 1984/1985 1983/1984 1982/1983 1979/1980 1978/1979 1977/1978 1976/1977 1974/1975 1972/1973 1967/1968 1963/1964 1962/1963 1960/1961 1959/1960 Total

352.000 17.507.60 0

14 8 8 13 6 10 8 10.00 9 7 5 2 2 3.00 1 1 1.00 1 1 1 1 1 -

8.800 -

9.00 14 5.00 13.00 8.00 10.00 7.00 8.00 9 8 11 2.00 3 1 3 2 2 1 1.00 1 1 297

44.224.400 293

352.000 -8.800 26.716.800

BALANCE SHEET OF ASAHI SOFT DRINKS


Balance sheet Sources of funds Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus Loan funds Secured loans Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07

15-Jan00 202.37 -

15-Jan00 188.48

15-Jan00 185.99

15.99 278.46 1,072.6 2

15.99 6 265.12

1,304

1,228

1,284

945.56
Page 43

KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL

INDUSTRY ANALYSIS ON SOFT DRINKS

Unsecured loans Total Uses of funds Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress Investments Net current assets Current assets, loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written Total Notes: Book value of unquoted investments Market value of quoted investments Contingent liabilities Number of equity sharesoutstanding (Lacs)

231 1,753

242 1,675

333 1,819

318.81 1,685.8 8

294.18 1,526.8 5

2,069 948 1,121 102.42 8.39 917.50 396.31 521.19 1,753.2 4 1 138 1,599 -

2,005 832 1,173 53.99 6.99 775.91 334.9 441.01 1,675.1 0 1 111 1,599

2,059 709 1,350 43.41 6.39

1,844.0 5 597.12 1,246.9 3 48.44 5.92

1,597.3 8 497.45 1,099.9 3 202.18 5.92

804.44 691.71 548.44 397.02 307.12 329.62 407.42 384.59 218.82 12.38 1,819.2 1,685.8 1,526.8 8 8 5 5.56 0.51 105.11 1599.28 5.56 0.59 71.83 1599.28

0 109 1,599

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 Total Inventory Prepaid Expenses Other Current Assets, Total Total Current Assets Property/Plant/Equipment, Total Net Goodwill, Net Intangibles, Net Long Term Investments

37,587 27,037 0 12,088 99,178

53,221 33,482 0 15,157 116,27 6

39,452 22,316 0 13,547 99,301

30,437 23,299 0 10,144 83,033

35,555 24,821 0 12,187 97,751

62,191 14,993 8,444 0

61,308 15,263 8,665 0

57,689 12,824 8,953 0

56,831 13,056 9,102 0

55,680 13,269 9,311 0


Page 44

KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL

INDUSTRY ANALYSIS ON SOFT DRINKS

Note Receivable - Long Term Other Long Term Assets, Total Other Assets, Total Total Assets Liabilities and Shareholders' Equity Accounts Payable Payable/Accrued Accrued Expenses Notes Payable/Short Term Debt Current Port. of LT Debt/Capital Leases Other Current Liabilities, Total Total Current Liabilities

0 13,702 0 198,50 8

0 13,852 0 215,36 4

0 13,689 0 192,45 6

0 14,362 0 176,38 4

0 14,289 0 190,30 0

22,982 0 19,589 310 8,571 7,454 58,906

35,544 0 20,020 10,310 7,970 5,890 79,734

27,027 0 18,197 310 7,428 7,447 60,409

18,378 0 15,316 310 6,870 4,472 45,346

27,271 0 18,325 310 6,241 6,561 58,708

Total Long Term Debt Deferred Income Tax Minority Interest Other Liabilities, Total Total Liabilities Redeemable Preferred Stock Preferred Stock - Non Redeemable, Net Common Stock Additional Paid-In Capital Retained Earnings (Accumulated Deficit) Treasury Stock - Common Unrealized Gain (Loss) Other Equity, Total Total Equity Total Liabilities & Shareholders Equity

24,759 0 16 9,116 92,797 0 14,512 12,656 13,004 79,202 -4,829 -6,231 -2,603 105,71 1 198,50 8

24,515 0 25 8,951 113,22 5 0 14,512 12,656 13,007 75,573 -4,836 -6,188 -2,583 102,14 1 215,36 6

22,381 0 105 8,035 90,930 0 14,512 12,656 13,010 74,735 -4,865 -6,190 -2,333 101,52 5 192,45 5

22,046 0 114 7,843 75,349 0 14,512 12,656 13,010 75,153 -5,675 -6,229 -2,393 101,03 4 176,38 3

21,356 0 89 7,673 87,826 0 14,512 12,656 13,010 76,479 -5,522 -6,197 -2,463 102,47 5 190,30 1

Total Common Shares Outstanding Total Preferred Shares Outstanding

89 34

89 34

89 34

89 34

89 34

BALANCE SHEET OF COTT COMPANY


KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL Page 45

INDUSTRY ANALYSIS ON SOFT DRINKS

Period End Date Stmt Source Stmt Source Date Stmt Update Type Assets Cash and Short Term Investments

2011 2011 Q3 Q2 2011 Q1 2010 Q4 2010 Q3 10/1/201 7/2/201 1 1 4/2/2011 1/1/2011 10/2/2010 10-Q 10-Q 10-Q 10-K 10-Q 11/4/201 8/9/201 5/11/201 3/15/201 11/10/201 1 1 1 1 0 Update Updated d Updated Updated Updated

28.2

24

35.8

48.2

35.4

Total Receivables, Net Total Inventory Prepaid Expenses Other Current Assets, Total Total Current Assets Property/Plant/Equipment, Total - Net Goodwill, Net Intangibles, Net Long Term Investments Note Receivable - Long Term Other Long Term Assets, Total Other Assets, Total Total Assets Liabilities and Shareholders' Equity Accounts Payable Payable/Accrued Accrued Expenses Notes Payable/Short Term Debt Current Port. of LT Debt/Capital Leases Other Current Liabilities, Total Total Current Liabilities

260.3 216 30.3 0 534.8 483.30 129.1 317 0 0 36.5 0 1,500.70

300.3 242.2 32.5 0 599 501.00 131.3 330.1 0 0 32.4 0 1,593.8 0

250.6 223.1 31 0 540.5 506.60 131.1 334.3 0 0 40.3 0 1,552.80

213.9 215.5 32.7 0 510.3 503.80 130.2 342.3 0 0 42.6 0 1,529.20

246 206.2 19 0 506.6 508.80 127.1 349.8 0 0 44.7 0 1,537.00

0 241.8 0 0 4.3 8.5 254.6

0 281.7 0 20.1 5.4 33.2 340.4

0 257.8 0 35.2 5.9 32.9 331.8

0 276.6 0 7.9 6 32.2 322.7

0 313.8 0 50.3 5.9 0 370

Total Long Term Debt

602.5

603.2

604.4

605.5

606.6
Page 46

KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL

INDUSTRY ANALYSIS ON SOFT DRINKS

Deferred Income Tax Minority Interest Other Liabilities, Total Total Liabilities Redeemable Preferred Stock Preferred Stock - Non Redeemable, Net Common Stock Additional Paid-In Capital Retained Earnings (Accumulated Deficit) Treasury Stock - Common Other Equity, Total Total Equity Total Liabilities & Shareholders Equity

39.3 13.7 20.5 930.6 0 0 395.90 41.9 156 -2.1 -21.6 570.1

44.5 14.1 21 1,023.2 0 0 0 395.70 43.5 139.8 -2.1 -6.3 570.6 1,593.8 0

43 12.3 21.3 1,012.80 0 0 395.60 40.8 113.3 -2.1 -7.6 540

43.6 13 22.2 1,007.00 0 0 395.60 40.8 106.5 -3.2 -17.5 522.2

18.5 13.8 19.8 1,028.70 0 0 395.60 39.1 93.9 -3.2 -17.1 508.3

1,500.70

1,552.80

1,529.20

1,537.00

Total Common Shares Outstanding Total Preferred Shares Outstanding

94.43 0

94.18 0

94.08 0

93.7 0

93.68 0

BALANCE SHEET OF CANADA DRY


Company Balance Sheet Assets Cash and Equivalents Receivables Inventories Other Current Assets Total Current Assets Property, Plant & Equipment, Gross Accumulated Depreciation & Depletion Property, Plant & Equipment, Net Intangibles Dec10 Dec09 Dec08 11.74 M 2.69M 5.65M 0 22.12 M 5.46M 3.36M 2.10M Dec07 17.86 M 4.47M 5.75M 0 38.84 M 2.99M 1.91M

5.45M 2.70M 2.28M 0 10.73 M 3.27M 2.97M 296.0 0K 0

4.98M 2.51M 3.71M 0 11.69 M 3.76M 2.95M 807.0 0K 0

1.08M 173.0 0 4K
Page 47

KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL

INDUSTRY ANALYSIS ON SOFT DRINKS

Other Non-Current Assets Total Non-Current Assets Liabilities & Shareholder Equity Total Assets Accounts Payable Short Term Debt Other Current Liabilities Total Current Liabilities Long Term Debt Deferred Income Taxes Other Non-Current Liabilities Minority Interest Total Non-Current Liabilities Total Liabilities Preferred Stock Equity Common Stock Equity Common Par Additional Paid In Capital Cumulative Translation Adjustment Retained Earnings Treasury Stock Other Equity Adjustments Total Capitalization Total Equity Total Liabilities & Stock Equity Total Common Shares Outstanding Preferred Shares

435.0 0K 731.0 0K 11.46 M 853.0 0K 0 146.0 0K 2.59M 0 0 2.00K 0 2.00K 2.59M 0 8.87M 0 54.49 M 0

1.03M 1.84M 13.53 M 1.40M

0 1.42M 2.20M 24.32 M 2.79M 41.62 M 6.99M 156.8 5K 203.3 8K 7.35M 0 0 0 0 474.2 3K 7.83M 0 33.80 M 0 47.85 M 0 14.18 M 0 129.4 7K 33.80 M 33.80 M 41.62 M 26.25 M 0
Page 48

1.47M 153.0 0 0K 69.00 34.00 K K 3.16M 4.44M 219.0 0K 0 0 0 75.00 0 K 0 0 219.0 396.0 0K 0K 3.38M 4.84M 0 0 10.15 19.48 M M 0 0 49.70 48.97 M M 0 0

46.07 39.96 29.41 M M M 0 0 0 450.0 418.0 79.00 0K 0K K 10.37 19.48 8.87M M M 10.15 19.48 8.87M M M 11.46 13.53 24.32 M M M 30.42 26.42 26.46 M M M 0 0 0

KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL

INDUSTRY ANALYSIS ON SOFT DRINKS

Treasury Shares Basic Weighted Shares Outstanding Diluted Weighted Shares Outstanding

0 27.17 M 27.17 M

0 26.43 M 26.43 M

0 26.34 M 26.34 M

0 25.98 M 25.98 M

BALANCE SHEET OF KIRIN BEWERY


2011 Period Ending Assets Current Assets Cash And Cash Equivalents Short Term Investments Net Receivables Inventory Other Current Assets Total Current Assets Long Term Investments Property Plant and Equipment Goodwill Intangible Assets Accumulated Amortization Other Assets Deferred Long Term Asset Charges 31-Dec-10 2010 31Dec-09

73,212 844 52,065 51,681 176,680 224 28,908 17,984 1,674

7,399 717 27,652 29,163 64,234 254 26,916 17,989 2,080 111,47 4

Total Assets Liabilities Current Liabilities Accounts Payable Short/Current Long Term Debt Other Current Liabilities Total Current Liabilities Long Term Debt Other Liabilities Deferred Long Term Liability Charges Minority Interest

225,470

49,371 9,605 19,353 78,328 1,538 550 -

45,368 11,491 14,197 71,055 7,330 8,323 868 Page 49

KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL

INDUSTRY ANALYSIS ON SOFT DRINKS

Negative Goodwill Total Liabilities Stockholders' Equity Misc Stocks Options Warrants Redeemable Preferred Stock Preferred Stock Common Stock Retained Earnings Treasury Stock Capital Surplus Other Stockholder Equity Total Stockholder Equity Net Tangible Assets

80,417

87,576

3,067 18,807 123,249 -71 145,052 127,068

1,036 6,386 16,574 -99 23,897 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.

KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL

Page 50

INDUSTRY ANALYSIS ON SOFT DRINKS

CHAPTER 4 DATA ANALAYSIS


Occupation Students Retail shop Shop kiosk Self employed Working employees No. of Respondents (%) 36 17 22 10 15

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


No. of Respondents (%) 23 17 35 25

Factors to create Brand Image News Papers Magazines T.V Celebrity promotion

SHOWING CLASSIFICATION OF THE RESPONDENTS ON THE BASIS OF THEIR FACTORS

before purchasing Soft Drink:

KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL

Page 51

INDUSTRY ANALYSIS ON SOFT DRINKS

factors influencing purchase brand image taste prodcut range availability

no.of repondents (%) 30 15 37 18

SHOWING CLASSIFICATION OF THE RESPONDENTS ON THE BASIS OF HOW THEIR

Purchase Decision differs:


No. of Respondents (%) 23 18 22 37

How differ Purchase Decision Occasions and festivals Some new product is in Availability of product Current market trend

KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL

Page 52

INDUSTRY ANALYSIS ON SOFT DRINKS

COMAPARATIVE ANALYSIS OF SOFT DRINKS COMPANIES


COMPANY NAME PROFIT(% ) 35 30 28 19 15 19 17 23 26 13

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

CHAPTER 5 FINDINGS AND SUGGESTION

KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL

Page 53

INDUSTRY ANALYSIS ON SOFT DRINKS

ACCORDING TO SCIENTIFIC STUDIES COKE AND PEPSI TO STOP

PRODUCTION AND DISTRIBUTION OF ALL THEIR PRODUCTS, WHICH HAVE PROVED THAT THEY ARE HARMFUL

KOTTAM KARUNAKARA REDDY INSTITUTE OF TECHNOLOGIES, KURNOOL

Page 54

Вам также может понравиться