UNIVERSITY BUSINESS

SCHOOL,PURC
LUDHIANA`
0

Report on the study of

“SOFTDRINKS
INDUSTRY”
on
Business Environment

Submitted To:
DR. ASHISH SAIHJPAL
(ASSISTANT PROFESSOR)
UBS, PURC, LUDHIANA

Submitted By:
JASKIRAT SINGH
PARUL KAUNDAL
RESHAV JAIN
JASPREET KAUR
 Soft Drinks

ACKNOWLEDGEMENT

We would like to express our special thanks of gratitude to our professor Dr. Ashish
Saihjpal, who gave us the golden opportunity to do this wonderful project on the
Food Processing Industry titled "A Study on Soft Drink Industry" which also helped
us in doing a lot of research and I came to know about so many new things I am really
thankful to him.

Secondly, we would also like to thank our parents and friends who helped us a lot in
finalizing this project within the limited time frame.
We overwhelmed in all humbleness and gratefulness to acknowledge my depth to all those
who have helped us to put these ideas, well above the level of simplicity and into
something concrete.

Any attempt at any level can't be satisfactorily completed without the support and
guidance of our parents and friends.

We would like to thank our peers who helped us a lot in gathering different information,
collecting data and guiding us from time to time in making this project. Despite their busy
schedules, they gave us different ideas in making this project unique.

Thanking you. (MBA 2nd Semester)

Jaskirat Singh
Parul Kaundal Reshav
Jain Jaspreet Kaur

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SUMMARY
Soft drinks, also known as sodas or carbonated beverages, constitute a
broad category of non-alcoholic drinks enjoyed worldwide for their
effervescence and diverse flavours. These beverages encompass various
types, each offering distinct tastes and characteristics. Among the most
popular are colas, which typically feature a blend of flavours, including
cola nut extract, and often contain caffeine. Clear sodas, such as lemon-
lime and ginger ale, provide a refreshing alternative with their transparent
appearance. Flavored sodas, ranging from orange and grape to cherry,
appeal to a wide range of taste preferences. Diet sodas, formulated with
artificial sweeteners instead of sugar, cater to individuals seeking low-
calorie options. Energy drinks, characterized by their caffeine content and
added ingredients like taurine and B-vitamins, aim to provide a quick
energy boost. Additionally, sports drinks are designed to aid hydration and
replenish electrolytes during physical activity.

Soft drinks encompass a wide range of carbonated beverages, including

colas, clear sodas, flavored options, diet variants, energy drinks, and sports
beverages. They are typically made with carbonated water, sweeteners
like sugar or artificial substitutes, flavorings, and sometimes caffeine.
While they provide hydration and enjoyment, their high sugar content can
contribute to health issues like obesity and dental problems. Concerns
also exist regarding artificial additives, caffeine dependency, and
environmental impact due to packaging waste and carbon emissions.
Moderation and consideration of healthier alternatives are recommended
for maintaining overall well-being.

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TABLE OF CONTENTS
SNO CHAPTER PAGE NO
1 Introduction 5-7

- Overview of soft drinks industry in India

- Objectives and scope of the soft drinks
2 Historical Evolution of the soft drinks industry 10-12

- Ingredients
3 List of soft drinks 13-44

- Introduction
- Vision and mission
4 Current state of the soft drinks industry 45-46

- Market size and growth trends

- Major players and market segments
5 Economic impact 47-48

- Contribution to GDP
- Employment generation
- Revenue and taxation
6 Social and cultural impact 49-51

- Consumer behavior and preferences

- Health and wellness trends
7 Regulatory environment 52-53

- Government regulations and policies affecting

the industry
- Taxation and import / export

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8 Technological impact 54-55

- Manufacturing processes and automation

- Digital trends
9 Competitive landscape 56-57

- Market share and strategies

10 Supply chain analysis. 58-59

- Overview of the soft drinks supply chain in India

11 SWOT analysis 61-62

Strength weakness opportunities and threats of the

soft drinks industry in India
12 Challenges and opportunities 63

Health concerns and regulatory challenges

Growth opportunities in untapped markets
13 Future outlook 64-66

Trends shaping the future of the soft drinks industry

in India
Forecast for market growth and challenges
14 Case studies 67-68
15 References 69

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CHAPTER 1
Definition Of Soft Drink

Soft drinks are non-alcoholic water-based flavored drinks that are

optionally sweetened, acidulated and carbonated. Some carbonated soft
drinks also contain caffeine; mainly the brown-colored cola drinks.

Introduction
Barbara Murray (2006c) explained the soft drink industry by stating, “For
years the story in the non-alcoholic sector centered on the power
struggle between…Coke and Pepsi. But as the pop fight has topped out,
the industry's giants have begun relying on new product flavors…and
looking to noncarbonated beverages for growth.” In order to fully
understand the soft drink industry, the following should be considered:
the dominant economic factors, five competitive sources, industry trends,
and the industry’s key factors. Based on the analyses of the industry,
specific recommendations for competitors can then be created

There are many specialties soft drinks. Mineral waters are very popular in
Europe and Latin America. Kava, made from roots of a bushy shrub, Piper
methysticum, is consumed by the people of Fiji and other Pacific islands.
In Cuba people enjoy a carbonated cane juice; its flavour comes from
unrefined syrup. tropical areas, where diets frequently lack
sufficient protein, soft drinks containing soybean flour have been
marketed. In Egypt carob (locust bean) extract is used. In Brazil a soft
drink is made using maté as a base. The whey obtained from making
buffalo cheese is carbonated and consumed as a soft drink in North
Africa. Some eastern Europeans enjoy a drink prepared from fermented
stale bread. Honey and orange juice go into a popular drink of Israel.

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OBJECTIVES AND SCOPE

The objectives and scope of soft drinks typically revolve around providing
refreshing and enjoyable beverages to consumers. Here are some
common objectives and the scope of soft drinks:

1. Quenching Thirst: Soft drinks are primarily designed to quench thirst

and provide hydration. They often contain water, flavorings, and
sweeteners to make them palatable and satisfying.

2. Variety of Flavors: One objective of soft drinks is to offer a wide range

of flavors to cater to diverse consumer preferences. This includes fruit
flavors, cola, lemon-lime, ginger ale, and more.

3. Carbonation: Many soft drinks are carbonated, providing a fizzy and

effervescent experience that adds to their appeal.

4. Energy and Refreshment: Some soft drinks are formulated to provide

an energy boost, often containing caffeine or other stimulants. These
beverages are marketed as energy drinks and have a scope beyond just
thirst quenching.

5. Occasional and Social Consumption: Soft drinks are often consumed

on social occasions, as mixers in cocktails, or as a treat during leisure
activities.

6. Packaging and Convenience: The scope of soft drinks extends to

packaging options that cater to various needs, such as cans, bottles, and
fountain dispensers. Convenience is a key factor, with many soft drinks
available in portable and single-serving sizes.

7. Market Positioning: Soft drink companies aim to position their

products in specific market segments, targeting different demographics
based on factors like age, lifestyle, and cultural preferences.

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8. Nutritional Considerations: With increasing health consciousness,

there's a growing focus on producing soft drinks with reduced sugar,
calories, and artificial ingredients, aligning with consumer demand for
healthier options.

9. Global Reach: Soft drink brands often have a global presence, adapting
their products and marketing strategies to different regions while
maintaining core brand identity.

10. Innovation: Continuous innovation in flavors, ingredients, packaging,

and marketing strategies is crucial for soft drink companies to stay
competitive and meet evolving consumer trends and demands.

Overall, the objectives and scope of soft drinks encompass a broad range
of factors, including taste, hydration, convenience, marketing strategies,
nutritional considerations, and global market presence.

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CHAPTER 2
History Of Soft Drinks
The first marketed soft drinks appeared in the 17th century as a mixture
of water and lemon juice sweetened with honey. In 1676 the Compagnie
de Lemonades was formed in Paris and granted a monopoly for the sale of
its products. Vendors carried tanks on their backs from which they
dispensed cups of lemonade.

Carbonated beverages and waters were developed from European

attempts in the 17th century to imitate the popular and naturally
effervescent waters of famous springs, with primary interest in their
reputed therapeutic values. The effervescent feature of the waters was
recognized early as most important. Flemish scientist Jan Baptista van
Helmont first used the term gas in his reference to the carbon
dioxide content. French physician Gabriel Venel referred to aerated water,
confusing the gas with ordinary air. British scientist Joseph Black named
the gaseous constituent fixed air.

Robert Boyle, an Anglo-Irish philosopher and scientist who helped found

modern chemistry, published his Short Memoirs for the Natural
Experimental History of Mineral Waters in 1685. It included sections on
examining mineral springs, on the properties of the water, on its effects
upon the human body, and, lastly, “of the imitation of natural medicinal
waters by chemical and other artificial ways.”

To Thomas Henry, an apothecary in Manchester, England, is attributed

the first production of carbonated water, which he made in 12-gallon
barrels using an apparatus based on Priestley’s design. Swiss
jeweler Jacob Schweppe read the papers of Priestley and Lavoisier and
determined to make a similar device. By 1794 he was selling his highly
carbonated artificial mineral waters to his friends in Geneva; later he
started a business in London.

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At first, bottled waters were used medicinally, as evidenced in a letter

written by English industrialist Matthew Boulton to philosopher Erasmus
Darwin in 1794:

J. Schweppe prepares his mineral waters of three sorts. No. 1 is for

common drinking with your dinner. No. 2 is for nephritick patients and
No. 3 contains the most alkali given only in more violent cases.
By about 1820, improvements in manufacturing processes allowed a
much greater output, and bottled water became popular. Mineral salts
and flavours were added—ginger about 1820, lemon in the 1830s, tonic in
1858. In 1886 John Pemberton, a pharmacist in Atlanta, Georgia,
invented Coca-Cola, the first cola drink.

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SOFT DRINKS INGREDIENTS

The major ingredients of soft drinks include the following:

Water
The major ingredient of soft drinks is

“Water”
and it accounts for 86%-90% of the soft drink composition.

Aromatic substances
Aromatic substances are added to soft drinks to give a pleasant taste and
better stability to the taste. These could be natural aromatic substances

Caffeine
obtainable from a variety of leaves, seeds and fruits. Identical aromatic
substance can be obtained more simply and cheaply, in purer forms from
raw materials other than plant raw materials and have characteristics
which correspond exactly with their natural equivalents

Sweeteners
There are many different types of sweeteners like sugar
(saccharose), another major ingredient in soft drinks as it is highly
nutritious and is the invaluable carrier of the fruit aromas. It is made from
sugar-beet or sugarcane or sweeteners found naturally in many fruits and
vegetables. Two simple types of sugar are found in fruits - fructose (fruit-
sugar) and glucose (grape-sugar). There are also low-calorie artificial
sweeteners like saccharin and aspartame (Nutra-sweet). Saccharin, is a
non-nutritious sweetener which is extremely sweet, stable gives no
energy (no calories). Aspartame is a nutrient-sweetener built up of two
amino-acids, aspartame acid and phenylalanine (200 times sweeter than
saccharin)

Carbon dioxide
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Carbon dioxide is another important ingredient added to the soft-drinks

in liquid form. It makes the drink more refreshing through its stimulation
of the mouth's mucous membranes adding a sensation that the soft drink
is colder than it actually is. The carbon dioxide also brings out the aroma
since the carbon dioxide bubbles 'drag with them' the aromatic
components. It also checks microbiological growth.

Acids
The most common acids used in soft drinks are citric acid, phosphoric
acid and malic acid
. The function of acidity in the drink is to balance the sweetness, make the
drink fresh and thirst-quenching. CSE Report: Analysis of Pesticide
Residues in Soft Drinks.

Colouring matter
Colour is added to soft drinks to make them presentable and appetizing.
Brown drinks are coloured with caramel (when sugar is heated, its colour
changes to brown, it becomes less sweet and acquires a burnt taste) or
betakarotin, which is also the dominant colouring agent in carrots and
oranges.

Preservatives
Preservatives like natrium benzoate and potassium sorbate
are added to increase the life of the product. Sulphur dioxide can also be
used as a preservative.

Antioxidants
Antioxidants are substances, which prevent reactions that destroy
aromatic substances in soft drinks. The most common antioxidant used is
ascorbic acid i.e. Vitamin C

Other additives

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Emulsifying agents, stabilizing agents, and thickening agents are also

added so that the contents of the drinks remain evenly distributed.
Examples of stabilizing agents and thickening agents are pectin
, which is obtained from citrus fruits or apples, and alginates
And carraghen which is obtained from algae.

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CHAPTER- 3

LIST OF SOFT DRINKS

SNO Soft Drinks
1 Pepsi
2 Slice
3 Coca cola
4 Thums Up
5 Sprite
6 Mountain Dew
7 Nestle
8 7Up
9 Red Bull

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The pharmacy of Caleb Bradham, with a Pepsi dispenser, as portrayed in a

New Bern exhibition in the Historical Museum of Bern.

Pepsi was first introduced as "Brad's Drink" in New Bern, North Carolina,
United States, in 1898 by Caleb Bradham, who made it at his home where
the drink was sold. It was later labelled Pepsi Cola, named after the
digestive enzyme pepsin and kola nuts used in the recipe.[2] Bradham
sought to create a fountain drink that was delicious and would aid in
digestion and boost energy

In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore to

a rented warehouse. That year, Bradham sold 7,968 gallons of syrup. The
next year, Pepsi was sold in six-ounce bottles, and sales increased to
19,848 gallons. In 1909, automobile race pioneer Barney Old field was the
first celebrity to endorse Pepsi-Cola, describing it as "A bully
drink...refreshing, invigorating, a fine bracer before a race." The
advertising theme "Delicious and Healthful" was then used over the next
two decades. In 1926, Pepsi received its first logo redesign since the
original design of 1905. In 1929, the logo was changed again.

In 1931, at the depth of the Great Depression, the Pepsi-Cola Company

entered bankruptcy – in large part due to financial losses incurred by
speculating on wildly fluctuating sugar prices as a result of World War I.
Assets were sold and Roy C. Megargel bought the Pepsi
trademark Megargel was unsuccessful, and soon Pepsi's assets were then
purchased by Charles Guth, the President of Loft Inc. Loft was a candy
manufacturer with retail stores that contained soda fountains. He sought
to replace Coca-Cola at his stores' fountains after Coke refused to give
him a discount on syrup. Guth then had Loft's chemists reformulate the
Pepsi-Cola syrup formula.

On three separate occasions between 1922 and 1933, the Coca-Cola

Company was offered the opportunity to purchase the Pepsi-Cola
company, and it declined on each occasion

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"PepsiCo's responsibility is to continually improve all aspects of the world

in which we operate -environment, social, economic - creating a better
tomorrow than today. "Our vision is put into action through programs and
a focus on environmental stewardship, activities to benefit society, and a
commitment to build shareholder value by making PepsiCo a truly
sustainable company.

Slice is a line of fruit-flavoured soft drinks manufactured by PepsiCo and

introduced in 1984, with the lemon-lime flavour replacing Teem.

Varieties of Slice citation needed] have included apple, fruit punch, grape,
passionfruit, peach glaze, Mandarin orange, pineapple, strawberry, Cherry
Cola, "Red", Cherry-Lime, and Dr Slice. Until 1994, the drink contained
10% fruit juice.

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The original design of the can was a solid colour related to the flavour of
the drink. These were replaced in 1994 with black cans that featured
colourful bursts (once again, related to the flavour of the drink), along
with slicker graphics. In 1997, the cans became blue with colour
coordinated swirls. The original orange flavour was reformulated around
this time with the new slogan, "It' orange, only twisted." Orange Slice has
since been changed back to its original flavour

In the summer of 2000, lemon-lime Slice was replaced in most markets

by Sierra Mist, which became a national brand in 2003. The rest of the
Slice line was replaced in most markets by Tropicana Twister Soda in the
summer of 2005, although the Dr. Slice variety can still be found in some
fountains. In early 2006, Pepsi resurrected the Slice name for a new line of
diet soda called Slice ONE. Marketed exclusively at Wal-Mart stores,
Slice ONE was available in orange, grape and berry flavours, all sweetened
with Splenda.

As of 2009, Slice (orange, diet orange, grape, strawberry and peach

flavours was available solely from Wal-Mart Stores. In India, Slice is a
mango flavoured soft drink under the PepsiCo brandand can be bought in
any general grocery store and other eatries, catering shops, promoted by a
Bollywood actress, Katrina Kaif.

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HISTORY
THE EARLY DAYS

Coca-Cola was created in 1886 by John Pemberton, a pharmacist in

Atlanta, Georgia, who sold the syrup mixed with fountain water as a
potion for mental and physical disorders.

The formula changed hands three more times before Asa D. Candler
added carbonation and by 2003, Coca-Cola was the world’s largest
manufacturer, marketer, and distributor of non-alcoholic beverage
concentrates and syrups, with more than 400 widely recognized beverage
brands in its portfolio.

INTERNATIONAL EXPANSION

With the bubbles making the difference, Coca-Cola was registered as a

trademark in 1887and by 1895, was being sold in every state and territory
in the United States. In 1899, it franchised its bottling operations in the
U.S., growing quickly to reach 370 franchisees by1910.10 Headquartered
in Atlanta with divisions and local operations in over 200 countries
worldwide, Coca-Cola generated more than 70% of its income outside the
United States by2003

Coke’s first international bottling plants opened in 1906 in Canada, Cuba,

and Panama. By the end of the 1920’s Coca-Cola was bottled in twenty-
seven countries throughout the world and available in fifty-one more. In
spite of this reach, volume was low, quality in consistent, and effective
advertising a challenge with language, culture, and government regulation
all serving as barriers. Former CEO Robert Woodruff’s insistence that
Coca-Cola wouldn’t “suffer the stigma of being an intrusive American
product,” and instead would use local bottles, caps, machinery, trucks, and
personnel contributed to Coke’s challenges as well with a lack of standard
processes and training degrading quality.

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Coca-Cola continued working for over 80 years on Woodruff’s goal: to

make Coke available wherever and whenever consumers wanted it, “in
arm’s reach of desire.” The Second World War proved to be the stimulus
Coca-Cola needed to build effective capabilities around the world and
achieve dominant global market share. Woodruff’s patriotic commitment
“that every man in uniform gets a bottle of Coca-Cola for five cents,
wherever he is and at whatever cost to our company” was more than just
great public relations.

As a result of Coke’s status as a military supplier, Coca-Cola was exempt

from sugar rationing and also received government subsidies to build
bottling plants around the world to serve.

THE WORLD’S MOST POWERFUL BRAND

Interbrand’s Global Brand Scorecard for 2003 ranked Coca-Cola the #1
Brand in the World and estimated its brand value at $70.45 billion

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The ranking’s methodology determined a brand’s valuation on the basis of

how much it was likely to earn in the future, distilling the percentage of
revenues that could be credited to the brand, and assessing the brand’s
strength to determine the risk of future earnings forecasts.
Considerations included market leadership, stability, and global reach,
incorporating its ability to cross both geographical and cultural borders.

From the beginning, Coke understood the importance of branding and the
creation of a distinct personality.

Its catchy, well-liked slogans (“It’s the real thing” (1942, 1969) “Things go
better with Coke” (1963), “Coke is it” (1982), “Can’t beat the Feeling”
(1987) and a 1992 return to “Can’t beat the real thing”) linked that
personality to the core values of each generation and established Coke as
the authentic, relevant, and trusted refreshment of choice across the
decades and around the globe.

INDIAN HISTORY
India is home to one of the most ancient cultures in the world dating back
over 5000 years.

At the beginning of the twenty-first century, twenty-six different

languages were spoken across India, 30% of the population knew English,
and greater than 40% were illiterate. At this time, the nation was in the
midst of great transition and the dichotomy between the old India and the
new was stark. Remnants of the caste system existed alongside the
world’s top engineering schools and growing metropolises as the
historically agricultural economy shifted into the services sector. In the
process, India had created the world’s largest middleclass, second only to
China. A British colony since 1769 when the East India Company gained
control of all European trade in the nation, India gained its independence
in 1947 under Mahatma Ghandi and his principles of non-violence and
self-reliance. In the decades that followed, self-reliance was taken to the
extreme as many Indians believed that economic independence was
necessary to be truly independent. As a result, the economy was
increasingly regulated and many sectors were restricted to the public
sector. This movement reached its peak in 1977 when the Janta party
government came to power and Coca-Cola was thrown out of the

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country. In 1991 the first generation of economic reforms was introduced

and liberalization began

COKE IN INDIA

Coca-Cola was the leading soft drink brand in India until 1977 when it left
rather than reveal its formula to the government and reduce its equity
stake as required under the Foreign Exchange Regulation Act (FERA)
which governed the operations of foreign companies in India. After a 16-
year absence, Coca-Cola returned to India in 1993, cementing its presence
with a deal that gave Coca-Cola ownership of the nation's top soft-drink
brands and bottling network. Coke’s acquisition of local popular Indian
brands including Thums Up (the most trusted brand in India21), Limca,
Mazza Citra and Gold Spot provided not only physical manufacturing,
bottling, and distribution assets but also strong consumer preference.
This combination of local and global brands enabled Coca-Cola to exploit
the benefits of global branding and global trends in tastes while also
tapping into traditional domestic markets.

Leading Indian brands joined the Company's international family of

brands, including Coca-Cola, diet Coke, Sprite and Fanta, plus the
Schweppes product range. In 2000, the company launched the Kinley
water brand and in 2001, Shock energy drink and the powdered
concentrate Sun fill hit the market.

From 1993 to 2003, Coca-Cola invested more than US$1 billion in India,
making it one of the country’s top international investors. By 2003, Coca-
Cola India had won the prestigious Woodruf Cup from among 22 divisions
of the Company based on three broad parameters of volume, profitability,
and quality.

Coca-Cola India achieved 39% volume growth in 2002 while the industry
grew 23% nationally and the Company reached breakeven profitability in
the region for the first time. Encouraged by its 2002 performance Coca-
Cola India announced plans to double its capacity at an investment of
$125 million Rs. 750 crore) between September 2002 and March 2003.24
Coca-Cola India produced its beverages with 7,000 local employees at its
twenty-seven wholly-owned bottling operations supplemented by

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seventeen franchisee-owned bottling operations and a network of

twenty- -packers to manufacture a range of products for the company.

The complete manufacturing process had a documented quality control

and assurance program including over 400 tests performed throughout
the process The complexity of the consumer soft drink market demanded
a distribution process to support 700,000 retail outlets serviced by a fleet
that includes 10-ton trucks, open-bay three wheelers, and trademarked
tricycles and pushcarts that were used to navigate the narrow alleyways
of the cities. In addition to its own employees, Coke indirectly created
employment for another 125,000 Indians through its procurement, supply,
and distribution networks. Sanjiv Gupta, President and CEO of Coca-Cola
India, joined Coke in 1997 as Vice President, Marketing and was
instrumental to the company’s success in developing a brand relevant to
the Indian consumer and in tapping India’s vast rural market potential.
Following his marketing responsibilities, Gupta served as Head of
Operations for Company-owned bottling operations and then as Deputy
President. Seen as the driving force behind recent successful forays into
packaged drinking water, powdered drinks, and ready-to-serve tea and
coffee, Gupta and his marketing prowess were critical to the continued
growth of the Company.

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OUR MISSION

Our Roadmap starts with our mission, which is enduring. It declares our
purpose as a company and serves as the standard against which we weigh
our actions and decisions.

➢ To refresh the world...

➢ To inspire moments of optimism and happiness...

➢ To create value and make a difference

OUR VISION
Our vision serves as the framework for our Roadmap and guides every
aspect of our business by describing what we need to accomplish in order
to continue achieving sustainable, quality growth

FIVE COMPETITIVE FORCES FOR COCA-COLA COMPANY

The soft drink industry is very competitive for all corporations involved,
with the greatest competition being that from rival sellers within the
industry. All soft drink companies have to think about the pressures; that
from rival sellers within the industry, new entrants to the industry,
substitute products, suppliers, and buyers.

The competitive pressure from rival sellers is the greatest competition

that Coca-Cola faces in the soft drink industry. Coca-Cola, Pepsi Co., and
Cadbury Schweppes are the large competitors in this industry, and they
are all globally established which creates a great amount of competition.
Though Coca-Cola owns four of the top five soft drink brands (Coca-Cola,
Diet Coke, Fanta, and Sprite), it had lower sales in 2005 than did PepsiCo
(Murray, 2006c).

However, Coca-Cola has higher sales in the global market than PepsiCo.
In 2004, Pepsi Co dominated North America with sales of $22 billion,
whereas Coca-Cola only had about $6.6 billion, with more of their sales
coming from overseas

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PepsiCo is the main competitor for Coca-Cola and these two brands have
been in a power struggle for years (Murray, 2006c).

Brand name loyalty is another competitive pressure. The Brand Keys’

Customer Loyalty Leaders Survey (2004) shows the brands with the
greatest customer loyalty in all industries. Diet Pepsi ranked 17th and
Diet Coke ranked 36th as having the most loyal customers to their brands.

Refer to List 15 for the brand loyalty rankings of the various competitors.
The new competition between rival sellers is to create new varieties of
soft drinks, such as vanilla and cherry, in order to keep increasing sales
and enticing new customers (Murray, 2006c).

New entrants are not a strong competitive pressure for the soft drink
industry. Coca-Cola and Pepsi Co dominate the industry with their strong
brand name and great distribution channels.

In addition, the soft-drink industry is fully saturated and growth is small.

This makes it very difficult for new, unknown entrants to start competing
against the existing firms. Another barrier to entry is the high fixed costs
for warehouses, trucks, and labor, and economies of scale. New entrants
cannot compete in price without economies of scale. These high capital
requirement and market saturation make it extremely difficult for
companies to enter the soft drink industry; therefore, new entrants are
not a strong competitive force (Murray, 2006c).

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INDUSTRY CHANGES
The soft drink industry is affected by macroenvironmental factors of the
industry that will lead to change. First, the entry/exit of major firms is a
trend in the industry that will likely lead to change. More specifically,
merger and consolidation has been prevalent in the soft drinks market,
causing some firms to exit the industry and then re-enter themselves.
Several leading companies have been looking to drive revenue growth and
improve market share through the increased economies of scale found
through mergers and acquisitions. One specific example is how PepsiCo
acquired Quaker Oats, who bought Gatorade which will help expand
PepsiCo’s energy drink sector (Data monitor, 2005). This trend has
increased competition as firm’s diversification of products is increasing.

A second trend in the macroenvironment is globalization. With the

growing use of the internet and other electronic technologies, global
communication is rapidly increasing. This is 10allowing firms to
collaborate within the country market and expand into world markets. It
has driven competition greatly as companies strive to be first-movers.
Specifically, the global soft drink market’s compound annual growth rate
(CAGR) is expected to expand to 3.6% from 2004to 2009 (Data monitor,
2005).

Third, changing societal concerns, attitudes, and lifestyles are important

trends. In the United States and Europe, people are becoming more
concerned with a healthy lifestyle. Consumer awareness of health
problems arising from obesity and inactive lifestyles represent a serious
risk to the carbonated drinks sector” (Data monitor, 2005, p. 15). The
trend is causing the industry’s business environment to change, as firms
are differentiating their products in order to increase sales in a stagnant
market. Thus, the long-term industry growth rate, the fourth trend,
shows low growth in recent years. Since 2000, the CAGR is 1.5 per cent
(Data monitor, 2005)

The low growth rates are of concern for soft drink companies, and several
are creating new strategies to combat the low rates.

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This leads to the fifth trend of growing buyer preferences for

differentiated products. Because soft drinks have been around since as
early as 1798 (American Beverage Association, 2006), buyers want
innovation with the products they buy. In today’s globalizing society,
being plain is not good enough. According to Barbara Murray (2006c),
“The key for all of these beverage companies is differentiation. The giants
have new formulations and appearances.

Whatever the strategy, be it a new colour, flavour, or formula, companies

will strive to create the greatest brand awareness in the minds of the
consumer in the hopes of crowding out its competitors.” Thus, the last
trend, product innovation, is necessary to combat buyers need for a
variety of tastes. Firms are already differentiating by taste, with the Coca-
Cola company as an example. The firm’s product line includes regular
Coca-Cola, Diet Coke, Diet cherry Coke, cherry Coke, Vanilla Coke, Coca-
Cola with Lime, Coca-Cola with lemon and many more (Murray, 2006a).

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 Soft Drinks

KEY SUCCESS FACTORS

Key factors for competitive success within the soft drink industry branch
from the trends of the macroenvironment. Primarily, constant product
innovation is imperative. A company must be able to recognize consumer
wants and needs, while maintaining the ability to adjust with
the changing market. They must keep up with the changing trends
(Murray, 2006c).
Another key factor is the size of the organization, especially in terms of
market share. Large distributors have the ability to negotiate with
stadiums, universities and school systems, making them the exclusive
supplier for a specified period of time. Additionally, they have the ability
to commit to mass purchases that significantly lower their costs. They
must implement effective distribution channels to remain competitive.
Taste of the product is also a key factor for success. ‘

Further
more, established brand loyalty is a large aspect of the soft drink industry.
Many consumers of carbonated beverages are extremely dedicated to a
particular product, and rarely purchase other varieties. This stresses the
importance of developing and maintaining a superior brand image

Price, however, is also a key factor because consumers without a strong

brand preference will select the product with the most competitive price.
Finally, global expansion is avital factor in the success of a company
within the soft drink industry. The United States has reached relative
market saturation, requiring movement into the global industry to
maintain growth

RECOMMENDATIONS

Looking towards the future, the most important recommendation to

Coca-Cola is continuing product innovation and expansion of their
product line. The soft-drinks industry is fully saturated with
competitors. Also, the industry is no longer expanding, and market
share is actually decreasing as more consumers are looking to healthier
options. By continually introducing new products, Coca-Cola will be able
to increase their profits and allow the company to continue to grow. Also,
having a diverse product line will make the corporation very stable, which

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 Soft Drinks

is appealing to investors and creditors. A second recommendation would

be to sustain or increase the global market

share. Coca-Cola is very well-established globally, and is the global soft-

drinks leader.

This is very important to sustain because it is the source of the majority

their profits. If they lose global market share, their profits will decline dra
matically. A finalrecommendation for Coca-Cola is to maintain and try to
increase their brand loyalty.

Diet Cokehas the second highest brand loyalty of all the soft-
drink competitors’ brands, and soliddvertising campaigns will help
maintain the brand loyalty. They can also strive to obtain higher brand
loyalty in all other brands, not solely Diet Coke. The brand loyalty is
important because it will allow Coca-Cola to sustain profits and maintain
their market share.

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 Soft Drinks

HISTORY

During the late 1970s, the American cola giant Coca-Cola abandoned
operations in India rather than make a forced sale of 60% of their equity
to an Indian company. Following this, the Parle brothers, Ramesh
Chauhan and Prakash Chauhan, along with then CEO Bhanu Vakil,
launched Thums Up as their flagship drink, adding to their portfolio of
older brands Limca (lime flavour) and Gold Spot (orange flavour). Thums
Up was basically a cola drink, but the company never claimed it as such.
The formula was just as closely guarded as the famous Coke formula.
During the same time, the owners of Coca-Cola’s bottling plant, Pure
Drinks Ltd., launched Campa Cola and Campa Orange, both of which had
a higher dose of carbon dioxide.

Manmad Hill
Typical bottle of Thums Up
The Thums Up logo was a red 'thumbs up' hand gesture with a slanted
white sans-serif typeface. This would later be modified by Coca-Cola with
blue strokes and a more modern-looking type face. This was mainly done
to reduce the dominant red colour in their signage. Some believe Thums
Up is named such so that illiterate people in India can order it with just a
simple hand gesture.

The picture shows the Thums Up mountain or, Thums Up pahaad (in
Hindi), Manmad hills which has a natural top like the thums up logo and is
a popular sight from trains Its famous
caption until the early 1980s was, “Happy days are here again”, coined by t
hen famouscopywriter Vasant Kumar, whose father was spiritual
philosopher U. G. Krishnamurti. The caption became "I want My
Thunder." It is currently "Taste the thunder!

"Thums Up enjoyed a near monopoly with a much stronger market share

often overshadowing its other rivals like Campa cola, Double seven and
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 Soft Drinks

Dukes, but there were many small regional players who had their own
market. It even withstood liquor giant United Breweries Group (makers of
Kingfisher Beer) Mcdowell's Crush, which was another Cola drink, and
Double Cola.

It was one of the major advertisers throughout the 1980s. In the mid-80’s
it had a brief threat from a newcomer Double Cola which suddenly
disappeared within a few years.

In 1990, when the Indian government opened the market to

multinationals, Pepsi was the first to come in. Thums Up went up against
the international giant for an intense onslaught with neither side giving
any quarter. With Pepsi roping in major Indian movie stars like Juhi
Chawla, to thwart the Indian brand, Thums Up increased its spending on
Cricket sponsorship. Then the capacity went from 250ml to 300ml, aptly
named Maha Cola. This nickname gained popularity in smaller towns
where people would ask for "Maha Cola" instead of Thums Up. The
consumers were divided where some felt Pepsi’s mild taste was rather
bland.

In 1993 Coca-Cola re-entered India after a prolonged absence from 1977

to 1993. But Coca-Cola’s entry made things even more complicated and
the fight became a three-way battle. That same year, in a move that
baffled many, Parle sold out to Coke for a meagre US$ 60 million
(considering the market share it had). Some assumed Parle had lost the
appetite for a fight against the two largest cola brands; others surmised

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 Soft Drinks

that the international brands seemingly endless cash reserves psyched-

out Parle. Either way, it was now Coca-Cola’s, and Coke has habit of
killing brands in its portfolio that might overshadow it. Coca-Cola soon
introduced its cola in cans which was all the rage in India, with Thums Up
introduced alongside, albeit in minuscule numbers. Later Coca-Cola
started pulling out the Thums Up brand which at that time till had more
than 30% market share.

Sprite is a transparent, lemon-lime flavored (called "Lymon" by the

company's owner), caffeine free soft drink, produced by the Coca-Cola
Company. It was introduced in the United States in1961. This was Coke's
response to the popularity of 7 Up, which had begun as "Bib-Label
Lithiated Lemon-Lime Soda" in 1929. It comes in a primarily silver, green,
and blue can or a green translucent bottle with a primarily green and blue
label. In 1978, Sprite became the market leader position in the lemon soda
category.

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 Soft Drinks

HISTORY
Sprite was introduced to the United States in 1961 to compete against 7
Up. Early magazine advertisements promoted it as a somewhat
sophisticated, tart and not-too-sweet drink mixer, to be used (similar to
tonic water or ginger ale) with alcoholic beverages such as whiskey and
vodka [citation needed]. In the 1980s, many years after Sprite's
introduction, Coke pressured bottlers that distributed 7 Up to replace
the soda with the Coca-Cola product. In a large part due to the strength
of the Coca-Cola system of bottlers, Sprite finally became the leader
position the lemon soda category in 1978[citation needed] Since the
1990s, Sprite has sponsored the NBA and used players in its advertising
campaigns. Players sponsored have included KobeBryant, Tim Duncan,
Lebron James, and Grant Hill.

Sprite's slogans in the 1960s and 1970s ranged from "Taste Its Tingling
Tartness", "Naturally Tart" and "It's a Natural!". A song known as "Sprite"
or "Melon-ball Bounce" was originally composed by Raymond Scott for a
Sprite radio commercial around 1963, that references the "ice-tart taste"
of Sprite. By the 1980s Sprite began to have a big following among
teenagers, so in 1987 marketing ads for the product were changed to
cater to that demographic. "I Like the Sprite in You" was their first long-
running slogan. Many versions of the jingle were made during that time to
fit various genres. The slogan was used until 1994.

In 1994, Sprite created a newer logo that stood out from their previous
logos. The main coloring of the product's new logo was blue blending into
green with silver "splashes", and subtle small white bubbles were on the

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 Soft Drinks

background of the logo. The word "Sprite" had a blue backdrop shadow on
the logo, and the words "Great Lymon Taste!" were removed from the
logo. This was the official US logo until 2007. During 1994, the slogan was
also changed to "Obey Your Thirst "and was set to the urban crowd with
a hip-hop theme song. One of the first lyrics for the new slogan were
Never forget yourself 'cause first things first, grab a cold, cold can, and
Obey your thirst."
OUR MISSION
Our Roadmap starts with our mission, which is enduring. It declares our
purpose as a company and serves as the standard against which we weigh
our actions and decisions
➢ To refresh the world...
➢ To inspire moments of optimism and happiness...
➢ To create value and make a difference.

OUR VISION
Our vision serves as the framework for our Roadmap and guides every
aspect of our business by describing what we need to accomplish in order
to continue achieving sustainable, quality growth.

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 Soft Drinks

Mountain Dew (currently stylized as MTN Dew) is a carbonated soft

drink brand produced and owned by PepsiCo. The original formula was
invented in the 1940s by Florida beverage bottler Barney and Barney
Hartman and was first marketed in Marion, VA, Knoxville and Johnson
City Tennessee. A revised formula was created by Bill Bridgforth in 1958.
The Mountain Dew brandand production rights were acquired by the
Pepsi-Cola company in 1964, at which point its distribution expanded
more widely across the United States. Between the 1940s and 1980s,
Mountain Dew consisted of a single citrus-flavoured version. Diet
Mountain Dew was introduced in 1988, followed by Mountain Dew Red
which was introduced -and discontinued - in 1988. While Mountain Dew
Red was short-lived, it represented the beginning of a long-term trend of
Mountain Dew being produced in different flavor variations. In2001,
though, a cherry flavor called Code Red was made and saw a great
success. This product line extension trend has continued after the success
of Code Red, with expansion into specialty, limited time production,
region-specific, and retailer-specific (Taco Bell, 7-Eleven) variations
of Mountain Dew. Production was first extended to the UK in 1996,
though this initial debut was short-lived as it was phased out in 1998. The
product returned to the UK under the name "Mountain Dew Energy" in
2010 and returned to the Republic of Ireland in Spring 2011.

As of 2009, Mountain Dew represented a 6.7 percent share of the overall

carbonated soft drinks market in the U.S. Its competition includes Vault,
Mello Yello, and Sun Drop; Mountain Dew accounts for eighty percent of
citrus soft drinks sold within the U.S

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 Soft Drinks

PepsiCo (known then as The Pepsi-Cola Company) acquired the

Mountain Dew brand in 1964, and shortly thereafter in 1973 the logo was
modified as the company sought to shift its focus to
younger, outdoorsy” generation. This direction continued as the logo rem
ained the same through the 1970s, 80s and into the late 1990s. Later
updates to the logo were made in 1999 and again in 2005.On October 15,
2008, the Mountain Dew logo was redesigned to "Mtn Dew within the
U.S. market, as a result of a PepsiCo rebranding of its core carbonated
soft-drink products. However, the variant flavours continued to use the
previous design until May 2011 when it was revealed that the "Code Red",
"Live Wire", "Voltage", and "Baja Blast" flavour variants would be given
redesigned packaging, including new logos to correspond with the "Mtn
Dew" style. The returning flavours "Pitch Black" "Supernova" "Typhoon"
and "Game Fuel" were given redesigned packaging and logos for their re-
release

VISION AND MISSION

PepsiCo’s overall mission is to increase the value of their shareholders

investment they do

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 Soft Drinks

thisthought sales growth, cost controls and wise investment of resources.

They believe their commercial success depends upon offering quality and
value to their consumers and customers providing product that are safe,
wholesome, economically efficient and environmentally sound and
providing a fair return to their investors while adhering to the highest
standards of integrity

The company dates to 1867 when two separate Swiss enterprises were
founded that would later form the core of Nestlé. In the succeeding
decades, the two competing enterprises aggressively expanded their
businesses throughout Europe and the United States.

In August 1867 Charles and George Page, two brothers from Lee County,
Illinois, USA, established the Anglo-Swiss Condensed Milk Company in
Cham, Switzerland. Their first British operation was opened at
Chippenham, Wiltshire, in 1873.In September 1867 in Vevey Henri Nestlé
developed a milk-based baby food, and soon began marketing it. The
following year saw Daniel Peter begin seven years of work perfecting his
invention, the milk chocolate manufacturing process.

Nestlé's was the crucial cooperation that Peter needed to solve the
problem of removing all the water from the milk added to his chocolate
and thus preventing the product from developing mildew. Henri Nestlé
retired in 1875 but the company under new ownership retained his name
as Farine Lactée Henri Nestlé

Henri Nestlé. In 1877 Anglo-Swiss added milk-based baby foods to their

products and in the following year the Nestlé Company added condensed
milk so that the firms became direct and fierce rivals.

In 1905 the companies merged to become the Nestlé and Anglo-

Swiss Condensed Milk Company, retaining that name until 1947 when the
name Nestlé Alimentana SA was taken as a result of the acquisition of
Fabrique de Produits Maggi SA (founded 1884) and its holding company

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 Soft Drinks

Alimentana SA of Kempttal, Switzerland. Maggi was a major

manufacturer of soup mixes and related foodstuffs. The company’s
current name was adopted in 1977. By the early1900s, the company were
operating factories in the United States, United Kingdom, Germany, and
Spain. The First World War created demand for dairy products in the
form of government contracts, and, by the end of the war, Nestlé's
production had more than doubled. After the war, government contracts
dried up, and consumers switched back to fresh milk. However, Nestlé's
management responded quickly, streamlining operations and reducing
debt.
The 1920s saw Nestlé's first expansion into new products, with
chocolate-manufacture becoming the company's second most important
activity.

The logo that Nestlé used until the 1970s. Nestlé felt the effects of the
Second World War immediately. Profits dropped from US$20million in
1938, to US$6 million in 1939. Factories were established in developing
countries, particularly in Latin America. Ironically, the war helped with the
introduction of the company's

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 Soft Drinks

newest product, Nescafé ("Nestlé's Coffee"), which became a staple drink

of the US military. Nestlé's production and sales rose in the wartime
economy.

The end of World War II was the beginning of a dynamic phase for Nestlé.
Growth accelerated and companies were acquired. In 1947 came the
merger with Maggi, a well-known manufacturer of seasonings and soups.
Crosse & Blackwell followed in 1950, as did Findus (1963), Libby’s (1971)
and Stouffer's (1973). Diversification came with a shareholding in L'Oréal
in 1974. In1977, Nestlé made its second venture outside the food industry,
by acquiring Alcon Laboratories Inc.

In 1984, Nestlé's improved bottomline allowed the company to launch a n

ew round of acquisitions, notably American food giant Carnation and the
British confectionery company Rowntree Mackintosh in 1988, which
brought the Willy Wonka brand to Nestlé.

The Brazilian president, Lula da Silva, inaugurates a factory in Feira de

Santana (Bahia), in February 2007.The first half of the 1990s proved to be
favourable for Nestlé. Trade barriers crumbled, and world markets
developed into more or less integrated trading areas. Since 1996, there
have been various acquisitions, including San Pellegrino (1997), Spillers
Pet foods (1998), and Ralston Purina (2002). There were two major
acquisitions in North America, both in 2002 – in June, Nestlé merged its
U.S. ice cream business into Dreyer's, and in August a US$2.6 billion
acquisition was announced of Chef America, the creator of Hot Pockets.
In the same time-frame, Nestlé came close to purchasing the iconic
American company Hershey's, one of its fiercest confectionery
competitors, although the deal eventually fell through. Another recent
purchase included the Jenny Craig weight-loss program, for US$600
million.
In December 2005, Nestlé bought the Greek company Delta Ice Cream
for €240 million. In January 2006, it took full ownership of Dreyer's, thus
becoming the world's largest ice cream maker, with a 17.5% market share

In November 2006, Nestlé purchased the Medical Nutrition division of

Novartis Pharmaceutical for $2.5B, also acquiring, in 2007, the milk-
flavouring product known as Ovaltine. In April 2007, returning to its roots,
Nestlé bought US baby-food manufacturer Gerber for $5.5 billion. In

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 Soft Drinks

December 2007, Nestlé entered into a strategic partnership with a Belgian

chocolate maker, Pierre Marcolini. Nestlé agreed to sell its controlling
stake in Alcon to Novartis on 4 January2010. The sale was to form part of
a broader US$39.3 billion offer, by Novartis, for full acquisition of the
world’s largest eye-care company.

On March 1, 2010, Nestlé concluded the purchase of Kraft's North

American frozen pizza business for $3.7 billion.

In July 2011, Nestlé SA agreed to buy 60 percent of Hsu Fu Chi

International Ltd. for about $1.7 billion

VISION:

“Respected, Trustworthy food, Nutrition, Health and Wellness Company”

To rapidly build Nestle India as the respected and trustworthy leading foo
d, nutrition, health and wellnesscompany ensuring long term sustainable
and profitable growth.

MISSION:

Nestle is dedicated to providing the best foods to people throughout the

day, throughout their lives, throughout the world. With our unique
experience of anticipating consumer’s needs and creating solutions,
Nestle contributes to your well-being and enhances your quality of life”

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 Soft Drinks

INTRODUCTION
Created by the Howdy Corporation in St. Louis, MO, 7UP was an
optimistic venture from the very start. After great success with the
Howdy Orange drink, company founder C.L. Grigg decided to try his luck
with lemons and limes. C.L. Grigg spent more than two years testing
over 11 different formulas, all in search of a drink that was refreshing
enough to prove irresistible to the people of Missouri and the world at
large. In 1929, C.L. Grigg’s bubbliest drink was born.

The public quickly developed a taste for Grigg’s caramel colored lemon-
lime soda. Bib-Label Lithiated Lemon-Lime Soda sold, and sold well. As
the drink grew more and more popular, the original name was traded in
for something short and sweet. Bib-Label Lithiated Lemon-Lime Soda
became known as 7UP.

Early advertising featured a winged 7UP logo with copy that read "a
glorified drink in bottles only. Seven natural flavors blended into a savory,
flavory drink with a real wallop." The drink was so successful by 1936 that
Grigg changed the name of The Howdy Corporation to The Seven-Up
Company. By the late 1940s, 7UP had become the third best-selling soft
drink in the world

In the decades to follow, 7UP developed iconic branding, setting it apart

from industry front-runners. In 1967, 7UP brought the phrase UNCOLA
into the national vernacular.

The UNCOLA campaign set 7UP apart from its competition and became
part of a counter cultural that symbolized being true to yourself and
challenging the status quo.

Always at the frontier of taste and pop culture, 7UP was also among the
first sodas to introduce sugar-free and caffeine free options. Through the
years, advertising for 7UP featured everything from a cartoon mascot
named Spot, to the "It’s an Up thing" and "Make 7UP yours" taglines.

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 Soft Drinks

HISTORY

7 Up was created by Charles Leiper Grigg, who launched his St. Louis-
based company The Howdy Corporation in 1920.Grigg came up with the
formula for a lemon-lime soft drink in1929. The product, originally named
"Bib-Label Lithiated Lemon-Lime Soda", was launched two weeks before
the Wall Street Crash of 1929. It contained lithium citrate, a mood-
stabilizing drug, until 1950. It was one of a number of patent medicine
products popular in thelate-19th and early-20th centuries

Philip Morris bought 7 Up in 1978, and sold it in 1986, to a group led by

the investment firm Hicks & Haas. 7 Up merged with Dr Pepper in 1988;
Cadbury Schweppes bought the combined company in 1995. The Dr
Pepper Snapple Group was spun off from Cadbury Schweppes in2008

INTRODUCTION

Red Bull is an energy drink sold by the Austrian Red Bull GmbH, created
in 1987 by the Austrian entrepreneur Dietrich Mateschitz. In terms of
market share, Red Bull is the most popular energy drink in the world, with
3 billion cans sold each year. Dietrich Mateschitz was inspired by an
already existing drink called Krating Daeng which he discovered in
Thailand. He took this idea, and to suit the tastes of Westerners, modified
the ingredients, and founded Austrian Red Bull GmbH in partnership with

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 Soft Drinks

Chaleo Yoovidhya. Chaleo Yoovidhya invented the Thai energy drink

Krating Daeng; in Thai daeng is red, and krating is the reddish-
brown bovine, gaur, an animal slightly larger than the bison. Red Bull is
sold in a tall and slim blue-silver can. Krating Daeng is sold in Thailand and
in some parts of Asia in a wider gold can with the name of Krating Daeng
or Red Bull Classic. Both are different products produced separately.

Their slogan is "Red Bull gives you wings and the product is marketed
through advertising, tournament sponsorship (Red Bull Air Race, Red Bull
Crashed Ice), sports team ownerships (Red Bull Racing, Scuderia Toro
Rosso, EC Red Bull Salzburg, FC Red Bull Salzburg, Red Bull New York,
RB Leipzig, Red Bull Brazil), celebrity endorsements, and with its record
label, Red Bull Records, music. In 2009 it was discovered that Red Bull
Cola exported from Austria contained trace amounts of cocaine. Red Bull
has also been the target of criticism concerning the possible health risks
associated with the drink.

HISTORY

Red Bull cans. Red Bull took many marketing and ingredient ideas from an
energy drink in Thailand called Krating Daeng. Dietrich Mateschitz, an
Austrian entrepreneur, developed the Red Bull Energy Drink brand.
Mateschitz was the international marketing director for Blendax, a

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 Soft Drinks

toothpaste company, when he visited Thailand in 1982 and discovered

that Krating Daeng helped to cure his jet lag.

Between 1984 and 1987, Mateschitz worked with TCBG Pharmaceutical

(aBlendax licensee) to adapt Krating Daeng for the European market. At
the same time Mateschitz and Chaleo Yoovidhya founded Red Bull
GmbH; each investing$500,000 of savings, giving it to Ieuan Griffiths and
taking a stake in the new company. Chaleo and Dietrich each held a 49%
share of the new company. They gave the remaining 2% to Chaleo's son
Chalerm, but it was agreed that Mateschitz would run the company.
The product was launched in 1987 in Austria, in a carbonated format. In
1989, the product was expanded to its first international markets,
Hungary and Slovenia. It entered the United States market (via California)
in 1997 and the Middle East in 2000.In 2008, Forbes magazine listed both
Chaleo and Mateschitz as being the 260th richest persons in the world
with an estimated net worth of $5.0 billion.

INGREDIENTS

Red Bull contains taurine, glucuronolactone, caffeine, B vitamins, sucrose,

and glucose. Red Bull sugar-free also contains aspartame, acesulfame K,
and sucralose in place of sucrose and glucose. Red Bull GmbH also
manufactures Red Bull Cola, containing the coca leaf, which has sparked a
controversy in Germany regarding minute traces of cocaine

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 Soft Drinks

MISSION

" Our mission is to be the premier marketer and supplier of Red bull in
Asia, Europe, and other parts of the globe. We will achieve this mission by
building long-term relationships with the people who can make it become
a reality.

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 Soft Drinks

CHAPTER 4
The soft drinks industry, in its current state, showcases a resilient market
characterized by several key aspects.

Market Size and Growth Trends

The global soft drinks market has maintained a substantial size, driven by
factors such as changing consumer preferences, innovative product
offerings, and expanding distribution channels. While mature markets in
North America and Europe exhibit moderate growth rates, emerging
markets in Asia-Pacific, Latin America, and Africa are experiencing robust
expansion due to rising disposable incomes, urbanization, and a growing
young population.

Major Players and Market Segments

The industry is dominated by major players such as The Coca-Cola
Company, PepsiCo, and Nestle Waters, which hold significant market
shares across various segments. Market segmentation includes
carbonated soft drinks (CSDs), non-carbonated beverages (including
juices, ready-to-drink teas and coffees, energy drinks, and functional
beverages), and bottled water. Each segment presents unique growth
opportunities and challenges, with an increasing emphasis on healthier
options, sustainability, and premiumization.

Current Trends and Future Outlook

Recent trends in the soft drinks industry include a shift towards healthier
and functional beverages, eco-friendly packaging, digitalization (e.g.,
online sales platforms, personalized marketing), and mergers/acquisitions
to enhance market presence and innovation capabilities. Looking ahead,
the industry is expected to witness continued growth driven by product
innovation, strategic partnerships, expanding market reach in developing
regions, and a focus on sustainability and wellness. However, challenges

45
 Soft Drinks

such as regulatory changes, health concerns, and evolving consumer

preferences will require ongoing adaptation and innovation from industry
players.

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 Soft Drinks

CHAPTER 5
Economic Impact of the Soft Drinks
The economic impact of the soft drinks industry is substantial,
contributing significantly to various aspects of the economy:

1. Contribution to GDP: Soft drinks industry contributes to the Gross

Domestic Product (GDP) of countries where they operate. This
contribution includes the value-added activities involved in production,
distribution, marketing, and sales of soft drinks. The GDP impact
encompasses not only the direct revenue generated by soft drink
companies but also the multiplier effects through supply chain activities
and consumer spending.

2. Employment Generation: Soft drinks industry generates employment

opportunities across multiple sectors. This includes jobs in manufacturing
facilities, distribution centers retail outlets, marketing and advertising
agencies, transportation, and logistics. The industry provides diverse
employment opportunities for workers with varying skill levels, from
production line workers to marketing professionals and supply chain
managers.

3. Revenue Generation and Taxation: Soft drink companies generate

substantial revenue from the sale of their products. This revenue
contributes to corporate taxes, sales taxes, and other forms of taxation,
providing governments with a source of revenue for public services and
infrastructure development. Additionally, soft drink sales contribute to
indirect taxes such as value-added tax (VAT) or goods and services tax
(GST), further adding to government revenues.

4. Supply Chain Impact: The soft drinks industry has a significant impact
on the supply chain ecosystem. This includes suppliers of raw materials
such as sugar, flavorings packaging materials, and equipment
manufacturers. The demand generated by soft drink companies

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 Soft Drinks

stimulates economic activity in these sectors, creating additional revenue

streams and employment opportunities.

5. Investment and Innovation: Soft drink companies invest in research

and development, technological advancements, and product innovation.
These investments not only drive industry growth but also contribute to
the development of new technologies and processes that can have
broader economic benefits across related industries.

6. Foreign Exchange Earnings: Soft drink companies that engage in

international trade contribute to foreign exchange earnings for their
respective countries. Exporting soft drinks to overseas markets brings in
revenue in foreign currency, which strengthens the country's balance of
payments and supports international trade relationships.

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 Soft Drinks

CHAPTER 6
Social And Cultural Impact of Soft
Drinks
The social and cultural impact of soft drinks is significant, influencing
various aspects of daily life, consumer behavior and societal norms.

At a social level, soft drinks play a role in social interactions and

gatherings. They are often served at parties, celebrations, and social
events, contributing to the convivial atmosphere and enhancing the
overall experience. Soft drinks are also commonly consumed during
meals, whether at home, restaurants, or fast-food establishments,
becoming an integral part of dining culture.

Moreover, soft drink consumption is intertwined with leisure activities,

entertainment, and relaxation. People often enjoy soft drinks while
watching movies, attending sporting events, or engaging in recreational
activities, associating these beverages with moments of enjoyment and
relaxation.

The marketing and branding of soft drinks also have a notable social
impact. Advertisements, sponsorships, and promotional campaigns create
cultural icons around certain soft drink brands, influencing consumer
preferences and lifestyle choices. These marketing efforts often target
specific demographics, such as young adults or families, shaping
consumer trends and brand loyalty.

However, there are social considerations related to soft drink

consumption as well. Health concerns regarding sugar content, artificial
additives, and their potential impact on overall well-being have led to
discussions about responsible consumption and the importance of

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 Soft Drinks

balanced diets. This has prompted some consumers to seek out healthier
alternatives or reduce their intake of sugary beverages, leading to shifts in
consumption patterns and product offerings within the industry.

Culturally, soft drinks can also reflect regional preferences and traditions.
Different countries and communities may have unique flavor preferences
or consumption rituals associated with soft drinks, showcasing the
diversity and adaptability of the industry to local cultures.

Consumer behavior and preferences in the soft drinks industry have

been significantly influenced by health and wellness trends. Here are the
key aspects of health and wellness trends impacting soft drinks:

1. Reduced Sugar and Calorie Content: With increasing awareness of

the health risks associated with high sugar consumption, consumers are
actively seeking soft drinks with reduced sugar and calorie content. This
has led to the development of low-sugar and sugar-free variants of
popular soft drinks, catering to those looking to manage their sugar
intake.

2. Natural Ingredients: There is a growing preference for soft drinks

made with natural ingredients and fewer artificial additives. Consumers
are interested in beverages with natural flavors, colors derived from fruits
or vegetables, and sweeteners like stevia or monk fruit extract as
alternatives to artificial sweeteners.

3. Functional and Health-Enhancing Ingredients: Soft drinks with

functional benefits are gaining popularity among health-conscious
consumers. These beverages may contain added vitamins, minerals,
antioxidants, or botanical extracts that offer specific health benefits such
as energy enhancement, hydration, immune support, or digestive
wellness.

4. Low or No-Caffeine Options: Some consumers prefer soft drinks with

reduced or no caffeine content, especially for those looking to minimize
caffeine intake or avoid stimulants altogether. This has led to the
introduction of decaffeinated versions or caffeine-free options in the soft
drinks market.

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5. Transparency and Labeling: Consumers are increasingly interested in

transparency regarding the ingredients and nutritional content of soft
drinks. Clear labeling, including information about sugar content, calorie
count, artificial additives, and allergens, helps consumers make informed
choices aligning with their health goals.

6. Hydration Focus: Soft drinks positioned as hydrating beverages are

appealing to consumers seeking refreshing options with added hydration
benefits. These beverages may include electrolytes, minerals, or natural
hydration-enhancing ingredients to promote optimal fluid balance.

7. Wellness Branding and Marketing: Soft drink brands are leveraging

wellness-centric branding and marketing strategies to appeal to health-
conscious consumers. This includes highlighting health benefits, natural
ingredients, sustainability initiatives, and promoting a holistic approach to
wellness beyond just taste and refreshment.

8. Plant-Based and Organic Options: The demand for plant-based and

organic products extends to the soft drinks category. Consumers seeking
environmentally friendly and healthier choices are drawn to soft drinks
made from plant-based ingredients or certified organic ingredients,
reflecting broader sustainability and wellness trends.

Overall, the health and wellness trends in the soft drinks industry are
driving innovation, product diversification, and marketing strategies
aimed at meeting the evolving preferences of health-conscious
consumers. Soft drink companies are responding to these trends by
offering a range of options that align with consumers' desire for healthier
Overall, the social and cultural impact of soft drinks is multifaceted,
encompassing social interactions, dining habits, leisure activities,
marketing influences, health considerations, and cultural expressions. As
consumption patterns evolve and societal values change, the soft drinks
industry continues to adapt and innovate to meet the diverse needs and
preferences of consumers around the world.

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CHAPTER 7
Regulatory Environment
The regulatory environment of soft drinks encompasses a range of
regulations and standards set by government agencies to ensure the
safety, quality, labeling, and marketing practices of these beverages.
These regulations often cover aspects such as ingredients, nutritional
content, packaging, advertising, and environmental sustainability. Soft
drink companies must adhere to these regulations to maintain
compliance, protect consumer health, provide transparent information to
consumers, and promote responsible marketing practices. The regulatory
landscape continues to evolve, with ongoing scrutiny on issues such as
sugar content, health claims, sustainability efforts, and the overall impact
of soft drinks on public health and the environment

Additionally, taxation and import/export policies play a crucial role in

the global soft drinks market. Here's an overview of these areas:

1. Government Regulations and Policies:

- Ingredients and Formulation: Governments regulate the types and
quantities of ingredients that can be used in soft drinks to ensure
consumer safety and health. This includes limits on sugar, artificial
additives, caffeine, and other substances.
- Labeling and Packaging: Regulations govern the labeling of soft drink
products, requiring accurate information about ingredients, nutritional
content, serving sizes, allergens, and health claims. Packaging standards
also focus on safety, recyclability, and environmental impact.
- Advertising and Marketing: Governments have guidelines for soft
drink advertising and marketing practices to prevent misleading claims,
target underage consumers responsibly, and promote healthy
consumption habits.
- Health and Nutrition Policies: some governments implement policies
aimed at reducing sugar consumption, obesity, and related health issues.

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This can include sugar taxes, nutritional labeling requirements, public

health campaigns, and restrictions on marketing to children.

2. Taxation:
- Sugar Taxes: Several countries have introduced sugar taxes on soft
drinks as a measure to discourage excessive sugar consumption and
address public health concerns related to obesity and diabetes.
- Import/Export Tariffs: Soft drink companies must navigate import and
export tariffs imposed by governments, which can impact trade flows,
pricing, and market competitiveness.
- Value-Added Tax (VAT): Soft drinks are subject to VAT or similar
consumption taxes in many jurisdictions, affecting the final retail price
and consumer demand.
- Excise Duties: Some countries impose excise duties on soft drinks
based on factors such as sugar content or alcohol content in certain
beverages like energy drinks.

3. Environmental Regulations:
- Governments enforce environmental regulations related to soft drink
packaging, waste management, recycling, and sustainability practices.
This includes requirements for eco-friendly packaging materials, recycling
initiatives, and reduction of single-use plastics.

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CHAPTER 8
Technological Impact

Soft drinks have had a significant technological impact on various fronts.

One of the most notable areas is packaging technology, where the
development of PET bottles revolutionized the industry by providing a
lightweight, shatter-resistant, and convenient container for beverages.
Additionally, advancements in bottling and canning processes, such as
automated filling and sealing systems, have greatly increased production
efficiency. Soft drink dispensing machines, ranging from simple fountain
dispensers to sophisticated automated systems, have also contributed to
the evolution of beverage service in restaurants, convenience stores, and
other establishments. Furthermore, the rise of digital technology has led
to innovations like self-service kiosks and mobile apps for ordering and
payment, enhancing customer experience and streamlining operations for
soft drink vendors. Overall, the technological influence of soft drinks
extends from packaging and production to distribution and customer
service, shaping the beverage industry's landscape in significant ways.

In the realm of manufacturing processes and automation, digital trends

have brought about substantial transformations. Traditional
manufacturing methods for soft drinks involved manual labor and semi-
automated machinery, leading to slower production rates and higher
costs. However, with the advent of digital technologies, such as IoT
(Internet of Things), AI (Artificial Intelligence), and robotics,
manufacturing processes have become more efficient, precise, and cost-
effective.

One of the key digital trends impacting soft drink manufacturing is the
implementation of smart factories. These are equipped with
interconnected sensors and devices that gather real-time data on
production processes, equipment performance, and product quality. AI

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and machine learning algorithms analyze this data to optimize production

workflows, predict maintenance needs, and minimize downtime,
ultimately enhancing overall efficiency and reducing production costs.

Automation plays a pivotal role in modern soft drink manufacturing

plants. Robotic systems handle tasks like bottle or can handling, filling,
capping, labeling, and packaging with speed and precision. Collaborative
robots, or cobots, work alongside human operators, enhancing
productivity and safety on the production floor.

Furthermore, digital trends have facilitated the integration of

sustainability practices into manufacturing processes. Advanced
monitoring systems track resource usage, such as water and energy,
allowing companies to implement eco-friendly initiatives and reduce their
environmental footprint.

Overall, digital trends have revolutionized soft drink manufacturing by

enabling smart, connected factories, increasing automation, improving
quality control, and promoting sustainability, thereby driving innovation
and competitiveness in the industry.

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CHAPTER 9
Competitive Landscape
The competitive landscape in the soft drink industry is characterized by
several major players vying for market share and implementing diverse
strategies to maintain or enhance their positions.

Coca-Cola and PepsiCo dominate the global soft drink market, collectively
holding a significant portion of the market share. Both companies employ
aggressive marketing strategies, extensive distribution networks, and
continuous product innovation to stay competitive. They also diversify
their portfolios by offering a range of beverages, including carbonated soft
drinks, non-carbonated drinks, energy drinks, and bottled water, catering
to different consumer preferences and trends.

One of the strategies commonly used by major soft drink companies is

brand differentiation. They invest heavily in branding, advertising, and
promotions to create strong brand identities and connect with consumers
emotionally. Coca-Cola, for instance, focuses on its heritage, tradition,
and emotional appeal, while PepsiCo often emphasizes youthfulness,
energy, and pop culture in its marketing campaigns.

Another aspect of the competitive landscape is the shift towards

healthier options and sustainability. With increasing consumer
awareness about health and environmental concerns, soft drink
companies are introducing low-sugar or sugar-free beverages, natural
ingredients, and eco-friendly packaging solutions. This strategy not only
addresses consumer preferences but also aligns with regulatory trends
and societal expectations.

Furthermore, strategic partnerships, acquisitions, and alliances are

common tactics used by soft drink companies to expand their market
reach, access new distribution channels, or diversify their product
offerings. For example, Coca-Cola has partnerships with various

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restaurants, entertainment venues, and sports organizations, leveraging

these alliances for brand visibility and consumer engagement.

In recent years, digitalization and e-commerce have also reshaped the

competitive landscape. Soft drink companies are investing in online
marketing, e-commerce platforms, and data analytics to understand
consumer behavior better, personalize marketing efforts, and drive online
sales growth.

Overall, the soft drink industry's competitive landscape is dynamic,

characterized by intense competition, continuous innovation, strategic
partnerships, and a focus on meeting evolving consumer preferences for
healthier, more sustainable beverage options.

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CHAPTER 10
Supply Chain Analysis
The soft drinks supply chain in India involves multiple stages and players
working together to ensure the production, distribution, and availability of
beverages to consumers across the country. Here is an overview of the
key components of the soft drinks supply chain in India:

1. Raw Materials Sourcing:

- The supply chain begins with the procurement of raw materials such
as water, sugar, flavorings colors, and additives.
- Soft drink companies source these materials from various suppliers,
both local and international, ensuring quality standards and regulatory
compliance.

2. Manufacturing:
- Once the raw materials are procured, they undergo processing and
blending at manufacturing plants.
- The manufacturing process includes mixing ingredients, carbonation
(for carbonated drinks), filling into bottles or cans, and packaging.

3. Packaging:
- Packaged soft drinks are then labeled, packaged into bottles or cans,
and prepared for distribution.
- Packaging materials include PET bottles, aluminum cans, labels, caps,
and packaging boxes.

4. Distribution:
- Distribution channels play a crucial role in the soft drinks supply chain.
Companies utilize a network of distributors, wholesalers, retailers, and
vending machines to reach consumers.
- Distribution centers are strategically located across the country to
ensure efficient transportation and timely delivery to retail outlets.

5. Retail:

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- Soft drinks are available for purchase at various retail outlets, including
supermarkets, convenience stores, restaurants, cafes, and vending
machines.
- Retailers manage inventory, sales, and promotions to meet consumer
demand and preferences.

6. Consumer:
- The final stage of the supply chain involves consumers purchasing and
consuming soft drinks.
- Consumer preferences, trends, and feedback influence product
offerings, marketing strategies, and future supply chain decisions.

Challenges and Trends:

- Logistics and transportation infrastructure: India's vast geographical
expanse and diverse terrain pose challenges in transportation logistics,
especially for perishable goods like beverages.
- Regulatory compliance: Soft drink companies must comply with
regulations related to food safety, labeling, packaging, and advertising set
by government authorities such as the Food Safety and Standards
Authority of India (FSSAI).
- Sustainability: There is a growing emphasis on sustainable practices in
the supply chain, including recyclable packaging, water conservation, and
carbon footprint reduction.
- Digitalization: Adoption of digital technologies such as IoT, data
analytics, and supply chain management systems enhances visibility,
efficiency, and decision-making in the soft drinks supply chain.

Overall, the soft drinks supply chain in India is complex, involving various
stakeholders, regulations, and challenges, but continuous innovation and
adaptation drive its evolution to meet changing consumer demands and
industry trends.

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CHAPTER 11
SWOT Analysis
Here is a SWOT analysis outlining the strengths, weaknesses,
opportunities, and threats of the soft drinks industry in India:

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Strengths:
1. Wide Consumer Base: The soft drinks industry in India benefits from a
large and diverse consumer base, including urban, rural, and semi-urban
populations.
2. Established Brands: Major players like Coca-Cola, PepsiCo, and local
brands have strong brand recognition and loyalty among consumers.
3. Product Diversification: The industry offers a wide range of products,
including carbonated drinks, non-carbonated beverages, flavored water,
energy drinks, and fruit juices, catering to diverse consumer preferences.
4. Distribution Network: Companies have well-established distribution
networks, reaching remote areas through a network of distributors,
wholesalers, retailers, and vending machines.
5. Marketing and Advertising: Effective marketing strategies, advertising
campaigns, and promotional activities contribute to brand visibility and
consumer engagement.

Weaknesses:
1. Health Concerns: Increased awareness of health issues related to sugar
content, artificial ingredients, and calorie intake has led to a shift in
consumer preferences towards healthier alternatives.
2. Regulatory Compliance: Compliance with stringent regulations related
to food safety, labeling, packaging, and advertising poses challenges and
adds to operational costs.
3. Seasonal Demand: The soft drinks industry experiences seasonal
fluctuations in demand, with higher sales during hot weather seasons and
festivals.

Opportunities:
1. Health and Wellness Trends: Opportunities exist for the development
and promotion of healthier beverages, including low-sugar options,
natural ingredients, functional drinks, and fortified beverages.
2. Innovation and New Products: Innovation in product formulations,
packaging, and flavors can attract new consumer segments and drive
sales growth.
3. Digitalization and E-commerce: Leveraging digital technologies, e-
commerce platforms, and data analytics can enhance consumer
engagement, online sales, and supply chain efficiency.

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4. Rural Market Expansion: Penetrating rural and semi-urban markets

through targeted marketing, distribution strategies, and affordable pricing
presents growth opportunities.
5. Sustainability Initiatives: Investing in sustainable practices such as
recyclable packaging, water conservation, and eco-friendly manufacturing
processes can appeal to environmentally conscious consumers.

Threats:
1. Competitive Landscape: Intense competition among major players and
the presence of substitute products pose threats to market share and
profitability.
2. Health and Regulatory Concerns: Increasing regulatory scrutiny and
consumer concerns regarding health, safety, and environmental impact
could lead to stricter regulations and market challenges.
3. Economic Factors: Fluctuations in economic conditions, inflation,
currency exchange rates, and consumer spending patterns can impact
sales and profitability.
4. Changing Consumer Preferences: Shifts in consumer preferences
towards healthier, natural, and functional beverages may pose challenges
for traditional soft drink categories.
5. Supply Chain Disruptions: Risks related to supply chain disruptions,
logistics, raw material availability, and distribution challenges can affect
production and distribution capabilities.

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CHAPTER 12
Challenges and Opportunities
The soft drinks industry in India faces a dual challenge related to health
concerns and regulatory challenges. Increased awareness among
consumers regarding the adverse effects of excessive sugar consumption,
artificial additives, and high-calorie content has led to a shift in
preferences towards healthier beverage options. This shift is accompanied
by stringent regulatory measures aimed at ensuring food safety, labeling
accuracy, and advertising transparency within the industry. As a result,
soft drink companies are under pressure to innovate and reformulate their
products to align with health-conscious consumer demands while
complying with regulatory standards.

However, amidst these challenges lie significant growth opportunities in

untapped markets. Rural and semi-urban areas in India represent a vast
untapped market for soft drink companies. Penetrating these markets
requires targeted strategies that consider affordability, accessibility, and
cultural preferences. By offering affordable pricing, smaller packaging
sizes, and localized Flavors, companies can effectively capture market
share in these regions. Moreover, expanding distribution networks,
leveraging digital technologies for market reach, and implementing
sustainability initiatives can further enhance growth prospects in
untapped markets. Additionally, tapping into the growing trend of health
and wellness by introducing low-sugar, natural ingredient-based
beverages present another avenue for growth and market differentiation.
Overall, while health concerns and regulatory challenges pose obstacles,
they also spur innovation and open doors to new market opportunities for
the soft drinks industry in India.

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CHAPTER 13
Future Outlook
The future outlook for the soft drinks industry in India is influenced by
several key trends that are shaping the industry's trajectory. These trends
encompass evolving consumer preferences, technological advancements,
regulatory developments, and market dynamics. Here are some trends
that are expected to shape the future of the soft drinks industry in India:

1. Health and Wellness Focus: The growing emphasis on health and

wellness is expected to continue shaping consumer preferences in the
soft drinks segment. There is a rising demand for healthier beverage
options, including low-sugar, natural ingredients, functional beverages,
and fortified drinks. Soft drink companies are likely to invest more in
research and development to innovate and introduce products that align
with these health-conscious trends.

2. Sustainability Initiatives: Sustainability is becoming increasingly

important in the beverage industry. Consumers are looking for eco-
friendly packaging, recyclable materials, and companies committed to
reducing their environmental impact. Soft drink companies are expected
to adopt sustainable practices throughout their supply chains, from
sourcing raw materials to packaging and distribution, to meet these
consumer expectations.

3. Digitalization and E-commerce: Digital technologies are transforming

the way soft drink companies interact with consumers, market their
products, and manage their operations. E-commerce platforms are gaining
traction, providing opportunities for direct-to-consumer sales and
personalized marketing strategies. Companies are likely to leverage data

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analytics, AI, and mobile apps to enhance customer engagement, optimize

supply chain management, and drive online sales growth.

4. Product Innovation: Continuous innovation in product formulations,

flavors, and packaging is essential for staying competitive in the soft
drinks market. Companies will focus on introducing new and unique
beverage offerings to attract consumers, differentiate their brands, and
capitalize on emerging trends. This includes exploring alternative
ingredients, functional benefits, and premiumization strategies.

5. Market Expansion: The soft drinks industry in India has significant

growth potential, especially in untapped markets such as rural and semi-
urban areas. Companies will invest in expanding their distribution
networks, developing localized products, and implementing targeted
marketing campaigns to capture market share in these regions. Moreover,
international players may also increase their presence in the Indian
market through strategic partnerships or acquisitions.

Forecast for Market Growth and Challenges:

The soft drinks market in India is expected to continue growing, driven by
factors such as population growth, urbanization, rising disposable
incomes, and changing consumer lifestyles. However, several challenges
and uncertainties may impact the industry's growth trajectory:

1. Health and Regulatory Concerns: Stricter regulations related to food

safety, labeling, advertising, and taxation could pose challenges for soft
drink companies, especially those offering sugary or high-calorie
beverages. Adapting to these regulatory changes while addressing
consumer health concerns will require agility and innovation.

2. Competition and Market Saturation: The industry is highly

competitive, with major players vying for market share. Intense
competition, coupled with the presence of substitute products and

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emerging beverage categories, may lead to pricing pressures and margin

challenges.

3. Supply Chain Disruptions: Risks related to supply chain disruptions,

logistics constraints, raw material availability, and environmental factors
could impact production capabilities and distribution networks.
Companies need robust risk management strategies to mitigate these
potential disruptions.

4. Economic Factors: Economic fluctuations, inflation rates, currency

exchange rates, and consumer spending patterns can influence consumer
purchasing behavior and overall market demand. Soft drink companies
must monitor economic trends and adjust their strategies accordingly.

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CHAPTER 14
CASE STUDIES
Case Study 1: Coca-Cola's "Share a Coke"
Campaign
Coca-Cola's "Share a Coke" campaign is a notable case study showcasing
the power of personalized marketing in the soft drinks industry. The
campaign involved replacing the Coca-Cola logo on bottles and cans with
popular names and phrases, encouraging consumers to share personalized
bottles with friends and family. This initiative not only created a buzz on
social media but also drove engagement and emotional connections with
consumers. By leveraging consumer data and digital printing technology,
Coca-Cola successfully personalized millions of bottles, leading to
increased sales, brand loyalty, and social media visibility. The "Share a
Coke" campaign demonstrated the effectiveness of innovative marketing
strategies in capturing consumer interest and driving sales growth in a
competitive market.

Case Study 2: Red Bull's Branding and

Sponsorship Strategy
Red Bull's strategic approach to branding and sponsorship has been a key
factor in its success within the energy drinks segment. The company
positioned itself as a lifestyle brand associated with extreme sports,
adventure, and high-energy activities. Red Bull's sponsorship of events
like Red Bull Air Race, Red Bull Cliff Diving World Series, and Red Bull
Rampage not only promoted brand visibility but also aligned with its
target audience of young, active consumers seeking adrenaline-pumping
experiences. Additionally, Red Bull's limited product variations and focus
on premium pricing contributed to its image as a high-quality,
performance-enhancing energy drink. Through effective branding,
targeted sponsorships, and a clear brand identity, Red Bull established

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itself as a leading player in the energy drinks market, successfully

differentiating itself from traditional soft drink brands.

These case studies highlight the importance of innovative marketing

strategies, personalized branding, and strategic partnerships in driving
success and differentiation within the competitive soft drinks industry.

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CHAPTER 15
REFERENCES

https://www.statista.com/outlook/cmo/non-alcoholic-
drinks/soft-drinks/worldwide

https://straitsresearch.com/report/soft-drinks-market

https://www.statista.com/outlook/cmo/non-alcoholic-
drinks/soft-drinks/india

https://www.britannica.com/topic/soft-drink

https://www.foodpolitics.com/wp-
content/uploads/SoftDrinkIndustryMarketing_11.pdf

https://www.imarcgroup.com/soft-drinks-market

https://www.euromonitor.com/world-market-for-soft-
drinks/report

https://www.euromonitor.com/world-market-for-soft-
drinks/report

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