Documente Academic
Documente Profesional
Documente Cultură
Presented by:
Tigers Team
Spring 2008
Overview
History
Sustaining Profits
History of Pepsi
Pepsi was created in 1893 in North Carolina by
Pharmacist Caleb Bradham.
By 1910 Pepsi had built a network of 270
bottlers.
Pepsi struggled and declared bankruptcy twice
During Great Depression grew in popularity due
to price decrease to a nickel.
In 1938, Coke sued Pepsi-Cola brand for
infringement on Coca-Cola’s trademark.
History of Coca-Cola
Coca-Cola was formulated in 1886 by pharmacist John
Pemperton who sold the product at drug stores as “potion for
mental and physical disorders.”
In 1891, Asa Candler acquired the formula, established a
Coke Alliances
Pepsi Acquisitions
Current Market
Presence
Porter’s Five Forces (Cont.)
Power of Buyers
Super Markets
Vending
Mass Merchandisers
Profitability of the
Fountain CSD Industry
Concentrate Business vs.
Bottling Business
Concentrate Producers
Blend raw material ingredients
Packaged Mixture in plastic canisters
Shipped to bottlers
Diet CSDs
Added artificial sweeteners
Concentrate Business vs.
Bottling Business
Bottlers
Purchased Concentrate
Added carbonated water and high fructose corn
syrup
Bottled CSD product
Delivered to customers accounts
Diet CSDs
Added sugar or high-fructose corn syrup
Concentrate Business vs.
Bottling Business
Concentrate Producer Bottlers
Little Capital Investment Capital Intensive
Cost of $25 million - $50 High-speed production
million lines
One plant to serve US Bottling costs $4 million
Significant cost- to $10 million
advertising, promotion, Capacity of $40 million
market research and warehouse cost $75
bottler support million
Coke and Pepsi each
require 100 plants
Pressure from Coke/Pepsi
Bottler Consolidation
50
40
30
20 CSD
10 Alcohol
Milk
0
1970 1981 1990 1996 2000 2003 NCSD