Soft Drink Manufacturing

Soft Drink Manufacturing

Brief Excerpt from Industry Overview Chapter:

Companies in this industry manufacture soft drinks and artificially carbonated beverages. Major companies include US-based global giants Coca-Cola, Keurig Dr Pepper, and PepsiCo, as well as Britvic (UK), Red Bull (Austria), and Suntory (Japan).

COMPETITIVE LANDSCAPE

Demand for soft drinks 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 introducing 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

Carbonated soft drinks account for about 55% of the industry revenue, followed by bottled (glass and plastic) soft drinks that account for about 30%, combined. Non-carbonated drinks account for more than 15%. Other revenue sources include the sales of iced tea and wholesale of other goods.