Global Beverage Industry

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Global and US beverage industry – macro environment * In 2009 the global sales of beverages industry was $ 1 581,7 billion, with a forecasted sales value of $ 1 775,3 in 2014. * In 2009 48,2% of the market share belonged to carbonated soft drinks, 29,2% to bottled water, 12,4% to fruit beverages, and the rest to alternative beverages. * Consumers were reducing their consumption of carbonated soft drinks, with a growth of – 2,3% in 2009. Consumer preferences have shifted. * The global growth of alternative beverages grew from 2005 to 2009 from $ 27,7 billion to $ 40,2 billion, with a projected value of $ 53,3 in 2014. * The $ value global market growth for alternative beverages grew at a 9,8 % annually between…show more content…
They operate globally. In contrast to these big players are companies that operate regionally or use a specialty brand of alternative beverages, such as GlaxcoSmithKline, Rockstar, etc. * Each segment targets different consumers, and use different distribution channels: Segments | Target market | Distribution | Energy drinks | Teenage boys | Convenience stores, supermarkets | Sports drinks | Sportsmen, outdoor manual laborers | Convenience stores, deli’s, restaurants, vending machines | Vitamin-enhanced | Health conscious adults | | 2 ounce cons. shots | Office workers, parents | Convenience stores | Relaxation drinks | Insomnia sufferers | | * All have to make use of efficient distribution channels to be successful in the industry. * Energy drinks are the leaders of the alternative beverages in brand loyalty(taste) and energy boosting(ingredients), while vitamin-enhanced beverages (VEB) use unique flavors and nutrition as competitive advantage. * In building an image, both energy drinks and VEB make use of brand name, packaging and clever advertisements. Energy drinks also endorse celebrities, and sponsor extreme sports events and music festivals (hip-hop, hard rock) Competition among the rivals is the strongest force, as each segment and all producers fight fiercely for competitive advantage, and stand in the market. Therefore they also pose the biggest threat, together with new entrants and substitutes.
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