The Carbonated Soft Drink Industry

1204 Words Nov 18th, 2014 5 Pages
The carbonated soft drinks (CSD) industry in the United State is considered to be in its maturity phase and there is a high degree of competition within the industry . There are several producers of carbonated soft drinks; however, our focus is on the top three soft drink producers : Coca-Cola (NYSE:KO) and PepsiCo (NYSE:PEP) and Dr. Pepper Snapple Group (NYSE:DPS) as they account for 41.9 percent, 30.3 percent and 14.8 percent of CSDs market share respectively, according to IBISWorld (Graph 1). We will analyze aforementioned company 's revenue, net profit margin, current ratio, quick ratio to get a better understanding of the competitor’s capabilities within the industry. However, we should keep in mind that the companies operate different business segments within itself. Therefore, its is difficult to attain information specific to the carbonated soft drink industry are figures are based on estimates.
The producers of the soft drinks continue to face difficulty in the marketplace partly due to factors such as economic recession, the change consumer preference, cost of raw material, public policies over the past decade (Graph 2). Consumer are more health concerned as critics have pointed that the soda industry is a contributing factor to the US obesity epidemic (Reuters) . Thus, the consumer are switching to healthier substitutes such as flavored water and sports drinks. In the United State the CSD Industry which consists three segments regular carbonated soft drinks, diet…
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