Industry Analysis & Industry Trends
The Carbonated Soft Drink Production industry has experienced mixed results in recent years. Before the economic downturn, sales of carbonated soft drinks (CSDs) were already losing their fizz as health-conscious consumers began purchasing healthier drinks. At the same time, a robust economy and consumers' desire for variety fuelled growth in more expensive niche products like sports and energy drinks, and premium fruit smoothies. However, since 2007-08 CSD sales have stabilised and outperformed other beverage classes, with cash-strapped consumers trading down to familiar and trusted brands like Coca-Cola and Pepsi. Investment in marketing new low-sugar soft drinks has also paid off, with demand for brands such as Pepsi Max and Coke Zero also rising... purchase to read more
Industry Report - Starting a New Business Chapter
While entry into the market is relatively easy, competing with incumbent firms with well-established distribution streams would require significant investment for prospective players.
To curb the dominance of CCE and Britvic, a new entrant would likely require a portfolio of beverages. Since existing major players within the industry have beverages in all product segments, as well as competing in the Bottled Water and Juice Drink Manufacturing industries, they are able to supply retailers with a complete range of beverages, thus maintaining their position as dominant players within the industry.
Advertising and marketing activities by existing major players are substantial. Therefore, brand loyalty also acts as a barrier to new entrants... purchase to read more