The Non Alcoholic Beverage Segment

• Consumers want to be more nutrition-conscious and the desire for low-calorie products is growing.

Coke or Pepsi? Diet or regular? These are questions that many of us hear on a regular basis when making choices about what we want to drink. But if a new law has its way this variety of drink choice could be no more, which is largely because soda and sugary beverages are contributing to the staggering increase in obesity rates in recent years in the United States. Obesity is defined as an abnormal accumulation of body fat that is usually 20% or more over an individual’s ideal body weight for their specific height, age and gender (Free Medical Dictionary 2007). Body weight and obesity risk are a result of genes, metabolism, behavior, environment, culture and socioeconomic status, wherein behavior and environment play two of the largest roles (University of Drexel 2015). People make decisions based on their environment or community which influence their health decisions and due to this it is essential to create environments that make is easier for people to engage in physical activity and eat a healthy diet (University of Drexel 2015). This is a problem that is particularly persistent in low-income populations causing them to suffer higher rates of obesity and the adverse health consequences that follow as a result of these poor diets. This is due in large part to their poor economic state but also their environment because they are surrounded by people that are in similar situations and dealing

Analysis - About 21% of total sales come from Beverages making it the largest category of products, followed by dairy products, confections and meat/poultry. The other categories are relatively smaller and the company can see at increasing their sales and offer them as combinations with merger products that would help in increasing the category and overall sales of the company.

Recently, people have become worried about the health issues associated with consuming sugary drinks, especially soda. The rate of people being diagnosed with type-2 diabetes and cardiovascular disease has been going up primarily because of beverages with added sugar (Cited in Crawford, 2016). Several studies have found that soda is linked to over 180,000 deaths per year (Cited in Crawford, 2016). An article by the Huffington Post (2011) said that an average American drinks about 44.7 gallons of carbonated beverages a year, which adds up to over 350 pounds of soda. Comparatively, in 2005 an average American drank only 0.5 gallons, making soft drinks the most consumed beverage in America (n/a, 2011). The way the government is trying to fix

A single can of soda can have at least ten teaspoons of sugar, that is already the daily maximum recommended intake. Sugar can increase cholesterol levels, heart disease, diabetes and weight gain.Moreover. The obesity is a colossal problem in America. According to the Center for Disease Control and Prevention 35.9% of U.S. adults over the age of twenty are obese (CDC, 2013). The CDC also notes that 69.2% of U.S. adults twenty years of age and over are overweight. The obesity problem does not only affect adults in the U.S. The CDC notes that 18.4% of adolescents between the ages of 12 and 19 are currently obese (CDC, 2013). These numbers show the harshness of the obesity problem in this

Putting our health into the hands of agribusiness and food corporations is one of many reasons our nation’s health is depleting and losing a battle against obesity. Food corporations target the poor, the time constricted, and the uneducated as a way to sell their product. All of these limitations are related to one another in some form or fashion. A high school dropout, making 19,000 dollars a year, who is a mother, has a higher probability of being obese than a woman the same age who is attending college. Convenience started with the introduction of Swanson’s T.V. dinner. Combined with a large advertising budget and a trusted name, processed foods entered the homes of Americans after the Second World War, selling over 13 million within its first year (Ganzel). The convenience of having a meal prepared for your family with minimal clean-up was sweeping the nation and other companies soon followed suit to keep up with consumer demand.

The impact sugary sodas have on our bodies is known by everybody. But this didn’t stop people consume large quantities of sugary beverages. This is what the change observed in the consumption of such drinks appears to be curious. In accordance with the report, the average American has cut down on soda consumption by 25 percent in the last 25 years.

"WARNING: Drinking beverages with added sugar(s) contributes to obesity, diabetes, and tooth decay. This is a message from the City and County of San Francisco” (Tama, M., 2015). Will this warning detour the American public from drinking sugary beverages? In 2011-2013, the Center for Disease Control reported that two states Colorado and Hawaii had less than 20% obesity. The Midwest led the country with a 28.7% obesity rate. When surveyed again in 2013, the South now leads the countries obesity epidemic with 30.2 % and the Midwest comes in a close second with 30.1%. There are no longer any states that fall beneath the 20% threshold (Obesity Prevalence Maps, 2013). With obesity rates rising, researchers are focusing on what leads to these statistics so that it can be reversed. These startling statistics requires action to be taken to reverse this growing epidemic. Obesity, Tooth decay, and Type 2 Diabetes have been linked to negative side effects of sugary beverages. As a leader in healthcare, Mayo Clinic should remove sugary drinks and foods from their hospitals, clinics, and health systems to model healthy living.

The threat of substitutes is high for the beer industry, and specifically for this strategic group. According to the trade group Beverage Industry, alcohol beverage consumption per capita has risen since 2000 at around one percent per year, which suggests that consumers on average are not substituting non-alcoholic beverages for the alcohol they currently consume[6]. Since 1994, consumption per capita has increased for the three major substitutes – premium beers, wine, and spirits.[7] Although beer holds a majority

But as the pop fight has topped out the industry’s giant have began relying in new product flavor and looking noncarbonated beverage for growth.” (strategic management in global context feb 22, 2006).

The current trends include a shift away from junk foods, a growing interest in healthier/beneficial products, and the trend for personalization through customization or seeking in a wide

For decades the Fast-food industry has supplied Americans with tasty, comforting food, quickly and at a low cost. It was not until recently, when the health craze first hit America in the late 1980’s that the corporations developed a new approach to marketing health food products to fit their customer’s wants (Nielsen). The most common fast food chains, such as McDonalds and Subway, started advertising “healthier” food items on their menus to continue appealing to the general public. While fast food restaurants give the impression of offering healthy food, nutritionist studies show healthy alternatives are not as nutritious as advertised and can lead to possible calorie underestimation and overconsumption (Chandon 85). In order to

is second largest category in the beverage industry, by volume in the United States, just behind carbonated soft drinks (CSDs) as shown below.

The CSD industry has undergone many changes, while Coke and Pepsi continued to maintain their positioning as the official competitors and dominant market players. The key trends in the industry include:

PepsiCo has the potential to encourage consumers into drinking water and eating healthier snacks that they promote. Bottled water is rising and it is a healthy substitute to sugared drinks. Restaurants, clubs and venues are using their beverage to make special drinks. This is where alcohol industries gains more profit to their company. However, with the ability to adjust customer’s demands with new and appealing products it can dominate to success.