Pepsico And The Soft Drink Industry

1152 Words May 3rd, 2016 5 Pages
PepsiCo is one of the largest U.S based food and beverage companies. With a strong heritage. What is now, PepsiCo was first established in the late 1800’s. What started as a small one-man operation has grown into a food and beverage megabrand, with strong competition from both sectors of the food and beverage industry. With fierce competition from companies such as Coca-Cola, Kraft foods and ConAgra, PepsiCo must continue to innovate while providing customers with quality products that are priced competitively to remain relevant.
Many brands and products fall under the PepsiCo umbrella. With over 22 brands generating at least $1 billion in retail sales, including Doritos chips, Quaker oatmeal, Gatorade sports drinks and Mountain Dew soda (Esterl ,2014). Less than half of PepsiCo’s sales are from the sale of soft drinks. Despite the fact that beverage sales make up less than half of all incoming revenue, PepsiCo is often seen as a soft drink manufacturer. (Trefis Team 2015).”
The soft drink industry has an oligopoly market structure, with PepsiCo and Coca-Cola being the two main competitors. Coca-Cola is #1 in soda sales, PepsiCo #2 and Dr. Pepper- Snapple #3. Other competitors in the beverage industry are Monster Beverage Corporation, Nestlé S.A., Red Bull GmbH, as well as local and regional companies such as 7-up, Jones Soda, Faygo and Town Club (“Pepsico Inc 's”, n.d). “Approximately 64% and 17% of Coca-Cola and PepsiCo’s valuation, respectively, comes from…
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