Nonalcoholic Beverage Manufacturing

Nonalcoholic Beverage Manufacturing

Brief Excerpt from Industry Overview Chapter:

Companies in this industry produce carbonated and noncarbonated soft drinks, bottled water, and ice. Major companies include Coca-Cola, Keurig Dr Pepper, and PepsiCo (all based in the US), along with Britvic (UK), Danone (France), Nestlé (Switzerland), Primo Water Corporation (Canada), Red Bull (Austria), and Suntory (Japan).

COMPETITIVE LANDSCAPE

Demand for nonalcoholic beverages is driven by consumer tastes and demographics. The profitability of individual companies depends on effective marketing. Large companies have economies of scale in production and distribution. Small companies can compete by producing new products, catering to local tastes, or selling at lower prices. The US industry is highly concentrated: the top 50 companies account for about 90% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products include soft drinks, carbonated (about 65% of industry revenue), non-carbonated (15%), and bottled water, non-carbonated (15%). Soft drinks include sodas (also referred to as carbonated soft drinks, or CSDs), as well as tea and coffee drinks, sports drinks, energy drinks, fruit and vegetable drinks (but not pure fruit and vegetable juices), and artificially carbonated water.