...Global and US beverage industry – macro environment * In 2009 the global sales of beverages industry was $ 1 581,7 billion, with a forecasted sales value of $ 1 775,3 in 2014. * In 2009 48,2% of the market share belonged to carbonated soft drinks, 29,2% to bottled water, 12,4% to fruit beverages, and the rest to alternative beverages. * Consumers were reducing their consumption of carbonated soft drinks, with a growth of – 2,3% in 2009. Consumer preferences have shifted. * The global growth of alternative beverages grew from 2005 to 2009 from $ 27,7 billion to $ 40,2 billion, with a projected value of $ 53,3 in 2014. * The $ value global market growth for alternative beverages grew at a 9,8 % annually between 2005 and 2009, and has a forecasted growth rate of 6,7 % between 2010 and 2014. * Of the alternative beverages market, the USA has 42,3 % of the share, Asia- Pacific has 31,5 %, and Europe has 22,2 % of the share. * In the US, sports drinks accounted for almost 60 % of alternative beverages sales, while vitamin- enriched drinks and energy drinks accounted for about 23 % and 18 % of 2009 alternative beverage sales. * Saturation rate for all types of beverages was high in developed countries. * Market maturity and poor economic conditions caused the US beverage industry to decline by 2,3 % in 2008 and by 3,1 % in 2009. * The entering of new geographic areas, the steady growth of the purchasing power of consumers in developing...
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...www.qyresearchreports.com Global and China Functional beverages Industry 2013 Market Research Report The report firstly introduced Functional beverages basic information included Functional beverages definition classification application industry chain structure industry overview; international market analysis, China domestic market analysis, Macroeconomic environment and economic situation analysis and influence, Functional beverages industry policy and plan, Functional beverages product specification, manufacturing process, product cost structure etc. then statistics Global and China key manufacturers Functional beverages capacity production cost price profit production value gross margin etc details information, at the same time, statistics these manufacturers Functional beverages products customers application capacity market position Activationontact information etc company related information, then collect all these manufacturers data and listed Global and China Functional beverages capacity production capacity market share production market share supply demand shortage import export consumption etc data statistics, and then introduced Global and China Functional beverages 2009-2013 capacity production price cost profit production value gross margin etc information. And also listed Functional beverages upstream raw materials equipments and down stream clients survey analysis and Functional beverages marketing channels industry development trend and proposals. In the...
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...REPORT THE COCA COLA LIMITED (GLOBAL AND INDIAN SCENARIO) Team 1 Members: Sirisha Adiraju 2014281 Vikrant Gupta 2014324 Udit Birpalia 2014310 Himanshu Dawra 2014344 Tanya Dhingra 2014300 Ankit Rawat 2014339 1. GLOBAL BEVERAGE MARKET SCENARIO The global beverage market has been forecast to increase at a compound annual growth rate (CAGR) of 4.6% over the next five years, to reach a market value of $1,347 billion by 2017. The global beverage industry's rising product demand, not much affected by the currents of global recession, bears testimony to its unyielding growth throughout. Until recently, the beverages market was divided simply between alcoholic and non-alcoholic beverages. As consumers' tastes grew more sophisticated and demand surged for a variety of beverage options catering to lifestyle changes and health concerns, the beverages industry has responded with a dizzying array of options to choose from. Products manufactured by the beverage industry include: bottled water, juice, sparkling and still drinks, syrups, nectars, ready-to-drink and regular teas and coffees, dairy drinks, energy drinks, sports drinks, fruit powders, and alcoholic drinks such as beer, wine, cider and spirits. The industry experienced a CAGR of 2.3% for the period spanning 2007-2016. Industry consumption volumes increased with a CAGR of 2.4% between 2006 and 2010, to reach a total of 717,040.5 million litres in 2011. The soft drinks industry will continue to straddle...
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...components of the global and U.S. beverage industry macro-environment? How do the economic characteristics of the alternative beverage segment of the industry differ from that of other beverage categories? Explain. Market size The beverage market is a large market with the worldwide total market for beverages in 2009 was $1,581.7 billion. The total sale of beverages during 2009 in the US was nearly 458.3 billion gallons; with 48.2 percent of industry sales was from carbonated soft drinks and 29.2 percent of bottle water industry sales. In 2009, the market segment of alternative beverage include sports drinks, flavored or enhanced water, and energy drinks made up 4.0 percent, 1.6 percent, and 1.2 percent of industry sales, respectively. The global market for alternative beverages in the same year was $40.2 billion (12.7 billion liters), while the value of the U.S market for alternative beverages stood at $17 billion (4.2 billion liters). Meanwhile, in Asia-Pacific region, the market for alternative beverages in 2009 was $12.7 billion (6.2 billion liters) and it was $9.1 billion (1.6 billion liters) in the European market. Market growth The dollar value of the global beverage industry had grown at a 2.6 percent annually between 2005 and 2009 and was forecasted to grow at a 2.3 percent between 2010 and 2014. However, this indicator for the alternative beverage industry was much higher. For example, the dollar value of the global market for alternative beverages grew at a 9.8 percent...
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...strategically relevant components of the global and U.S. beverage industry macro-environment?The strategically relevant components of the global and U.S. beverage industry macro-environment: • Global beverage companies such as Coca Cola and PepsiCo had relied on such beverages to sustain in volume growth in mature markets where consumers were reducing their consumption of carbonated soft drinks. • Coca-Cola, PepsiCo, and other beverage companies were intent on expanding the market for alternative beverages by introducing energy drinks, sports drinks, and vitamin drinks in more and more emerging international markets. • Beverage producers had made various attempts at increasing the size of the market for alternative beverages by extending existing product lines and developing altogether new products. • Expanding the market for alternatives beverages and increasing sales and market share, beverage producers also were forced to content with criticism from some that energy drinks, energy shots, and relaxation drinks presented health risks for consumers and that some producers’ strategies promoted reckless behavior, the primary concern of most producers of energy drinks, sports drinks, and vitamin-enhanced beverages was how to best improve their competitive standing in the market place. • Rapid growth in the category, coupled with premium prices and high profit margins made alternative beverages an important part of beverage companies’ lineup of brands. (b)...
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...Sections I II III IV Introduction Strategic Considerations in Global Coffee Demand Regional and Country-Level Snapshots Key Points to Consider 3 7 13 22 2 4 1 Ross Colbert, Global Strategist Beverages Mr. Colbert joined Rabobank in January 2011 and is responsible for developing FAR’s research portfolio and Rabobank’s global view toward the beverage sector. Rabobank’s FAR team provides information and analysis covering all of the major sectors throughout the food chain. The seven-member FAR Beverage team is part of Rabobank’s global FAR group, which is comprised of Rabobank s approximately 70 analysts around the world. Colbert joined Rabobank following an extensive career in the beverage industry. Most recently he was Managing Director of M&A Americas for Zenith International, which is one of the world’s leading consulting, market intelligence and financial advisory firms focused on the global food and beverage industry. Prior to that, he was Managing Director and Chief Operating Officer for eight years at Beverage Marketing Corporation, which provides market intelligence and financial advisory services to the global beverage industry. Over his career he has served as an advisor to Pepsico, Coca-Cola Enterprises, Heineken, Nestle Waters, Snapple Beverages, and Seagram's as well as many independent, private beverage companies. Additionally, he began his career at Coca-Cola Bottling of Miami, then moved to Beverage Canners International and Cadbury Schweppes. He has his undergraduate...
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...very competitive market of beverage. Bangladesh has a relatively hot weather and people tend to be thirstier. So they prefer to take soft drinks most of the time. Beverage took the market of Bangladesh in the first half of 1980. In that time two or three soft drinks were available in the market. But now lots of beverage found in the market. Some of them are popular and some are not so popular. Soft Drinks Industry like other developing and developed countries is getting much popularity in Bangladesh. The number of firms operating in this industry is getting increased. The market is also increasing in a greater portion. Today most of the people in both urban and rural areas are taking soft drinks in a large amount. To capture this market many global brands are competing with local brands now. However the local brands (Mojo and Pran) are much successful even if the global brands (Coca Cola, Pepsi) are present. Our soft drinks industry follows some innovative, strong and continuous improving production and marketing techniques. Although quality is not the prime concern of our people, they mainly prefer cost effective soft drinks. The local companies are competing with global brands on the basis of lower cost. They are capturing the urban markets by offering some innovative marketing plan and offer. In rural areas they are very strong in distribution strategy and price effectiveness. Our local brands understand the psychology of our people more than the global brands. That’s why they...
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...Competition in Energy Drinks, Sports Drinks, and Vitamin-Enhanced Beverages Case Discussion: Competition in Energy Drinks, Sports Drinks, and Vitamin-Enhanced Beverages Assignment Questions: 1. What are the strategically relevant components of the global and U.S. beverage industry macro-environment? How do the economic characteristics of the alternative beverage segment of the industry differ from that of other beverage categories? Explain. Global beverages companies like Coca Cola had relied on those beverages to sustain volume growth in mature markets where consumers were reducing their consumption of soft drinks. These companies wanted to expand the market for alternative beverages by introducing new drinks into emerging markets. Beverage producers made numerous attempts to increase the size of the market for those types of beverages by growing product lines and increasing sales and market share. They were faced with criticism of alternative beverages as presenting health risks or not yielding the advertised results. Rapid growth in the market and premium prices/high margins made the alternative beverage market an important part of beverage company strategy. The economic characteristic of the alternative beverage segment if the industry is differ from that of other beverage categories. Alternative beverages competed on the basis of differentiation from traditional drinks such as carbonated soft drinks or fruit juices. The market started out with low competition...
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...The Coca-Cola Company Case Synopsis Submitted by: Christopher Hnatko, Romita Sidhu and Li Zhang Business 478- Section D300 March-17 2014 INTRODUCTION Firm History The Coca-Cola Company is a beverage company. “It owns or licenses more than 500 nonalcoholic beverage brands” (MintGlobal, 2014). It primarily serves sparkling beverages but also wide range of still beverages such as water, juices, ready-to-drink teas and coffees, and sports drinks. The Coca-Cola Company was founded in 1886, by John S. Pemberton and served Coca-Cola at a local Pharmacy in downtown Atlanta, Georgia (The Coca-Cola Company, 2014). In 1892, Asa Candler purchased and incorporated the Coca-Cola Company as a Georgia Corporation (The Coca-Cola Company, 2014). Fourteen years later, under Candler’s leadership, bottling operations began in Canada, Cuba, and Panama. In 1919, the Coca-Cola Company was purchased by a group of investors led by Ernest Woodruff for $25 million. From its early years, Coca-Cola Company made significant innovations in the beverage industry, such as six-bottle carton and steel 12-ounce cans. Additionally, it continued to expand internationally (The CocaCola Company, 2014). In 1923, Robert W. Woodruff was elected as president of the Coca-Cola Company, who also served as a Chairman of the Board in 1939. The very first new product distributed by the Company was Fanta Orange in Naples, Italy. After the success of this product, it established a diverse portfolio through...
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...G.SAI KIRAN 1226113115 NON ALCOHOLIC BEVERAGE INDUSTIRY: SOFT DRINKS SUMMERY: Non-alcoholic beverages sector, which is currently being looked at as a non-corporate small- and medium-scale dominated segment, needs extensive reforms in order to develop as a complete corporate sector. In 1993, the consumption of aerated beverages in India was a meager three servings, per person, per annum. Cut to 2013, industry estimates cite that Indians have a per capita consumption of 14 servings. While that’s small when you compare the global average of 94 servings, India, because of the sheer weight of its population, is a huge force to reckon with for the world’s leading food and beverage corporations. Currently the influx of FDI in overall food processing sector is 1.8% of the total FDI ($147.08 billion) India got between 2001 and 2011. Out of this, the non- alcoholic beverage sector got approximately $19.44 million under automatic route while its contribution to India’s GDP was around $1.6 billion. Companies under the Indian beverages sector have operations in more than one state and the difference in taxation and other factors create barrier for the sector. Issues like implementation of GST (Goods and Services Tax) would certainly help the entire F&B industry. Inflation has got entrenched and monetary policy does not have any or has very little impact on food prices and fuel prices, food grain prices were moving upwards faster than other food items. The increase in the general...
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...Case Analysis of the Alternative Beverage Marketplace Companies around the world are fighting for position in their industries. The completive world of alternative beverages is no different. The companies involved in this epic battle for market share all are challenged with the three questions outlined by Arthur A. Thompson “What’s the company’s present situation? What should the company’s future direction be and what performance targets should we set?” (Thompson, 2012) The development of a strategy for the companies involve in the alternative beverage arena is a daunting one. There are pressing internal and external environmental factors that present significant challenges in the gaining and maintaining of market share with in the industry. The obstacles faced by these organizations include global economic slow downs, dynamic distribution channels, negative press and fickle customer tastes. These companies, however, must remain focused and vigilant to attract customers to their brands. The case study presented by John E. Gamble, Competition in Energy drinks, Sport Drinks, and Vitamin-Enhanced Beverages, outlines the boons and challenges faced by the four leading distributers of alternative beverages around the world. The industry leaders (PepsiCo, Coca-Cola, Red Bull and Hansen Natural Company) in the alternative beverage market are what is know as a strategic group. “A strategic group is a cluster of industry rivals that employ similar competitive...
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...Case Discussion: Competition in Energy Drinks, Sports Drinks, and Vitamin-Enhanced Beverages Assignment Questions: 1. What are the strategically relevant components of the global and U.S. beverage industry macro-environment? How do the economic characteristics of the alternative beverage segment of the industry differ from that of other beverage categories? Explain. Global beverages companies like Coca Cola had relied on those beverages to sustain volume growth in mature markets where consumers were reducing their consumption of soft drinks. These companies wanted to expand the market for alternative beverages by introducing new drinks into emerging markets. Beverage producers made numerous attempts to increase the size of the market for those types of beverages by growing product lines and increasing sales and market share. They were faced with criticism of alternative beverages as presenting health risks or not yielding the advertised results. Rapid growth in the market and premium prices/high margins made the alternative beverage market an important part of beverage company strategy. The economic characteristic of the alternative beverage segment if the industry is differ from that of other beverage categories. Alternative beverages competed on the basis of differentiation from traditional drinks such as carbonated soft drinks or fruit juices. The market started out with low competition, however that is rapidly changing as many new product lines enter and profit...
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...for beverages and snacks are basic commodities such as potatoes, flavor, color, caffeine sugar, packaging etc. So the producers of these commodities have no bargaining power over the pricing for this reason; the suppliers in this industry are weak. Bargaining Power of Buyers Buyers in this industry have the bargaining power, because main source of the revenue and market share in beverage and food industry are fast food fountain, convenience stores food stores vending etc. The profit margins in each of these segments noticeably demonstrate the buyer power and how special buyers pay diverse prices based on their power to bargain. Threat of New Entrant There are many factors that make it hard for new player to enter the beverage industry some of important factors are brand image and loyalty, advertising expense, bottling network, retail distribution fear of retaliation and global supply chain. Brand Image / Loyalty Pepsi and Coke continuously focusing on increasing their biggest beverage and food products, they has built some of the globe’s strongest brands that are loved by consumers throughout the world. Innovative Marketing has leveraged their worldwide brand-building strength to attach with consumers in significant ways and impel the growth globally. These all campaign results in higher amount of loyal customer’s and strong brand equity throughout the world. In 2011, Coca-cola was declared the world’s most valuable brand according to Interbrand’s best global brand...
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...world to be more interdependent. Since the global market is asking for higher efficiency, productivity and choice varieties, products, ideas and even culture are interchanging over the world and are leading it to an integrating and emerging state. Global market allows organizations to gain for more profit and opportunities, but the market is becoming more competitive at the same time. In order to stand out and survive in the market, organization must have clear vision and comprehensive marketing strategies. Over the decades, Coca Cola competed from a local scope to an international scope, from selling one type of Coca-Cola product in United State to selling over 500 different products in the global beverage market, it has been doing a very good job which allow Coca Cola to be the world’s largest beverage company today. THE COCA-COLA COMPANY - Coca Cola is the world’s largest beverage company which manufactures beverage concentrates and syrup to their franchised bottlers who make and deliver the final bottle drink to the market. The Coca-Cola Company was established in 1892 by Asa Candler. Besides the main product Coca-Cola coke, the company currently produces over 500 brands of other beverages and sells to more than 200 countries all over the world. Coca-Cola’s mission is to refresh the world, inspire moments of optimism and happiness and to create and make a difference. THE GLOBAL BEVERAGE INDUSTRY - The global beverage industry is made up of manufacturer of carbonated soft...
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...GLOBAL ALCOHOL INDUSTRY Category-wise breakdown of global alcoholic beverages | Category |Volume(In Mn Litres) |% | |Beer |185 |78.4 | |Wine |27 |11.2 | |Spirits |19 |8.1 | |RTD’s/ high strength premixes |4 |1.7 | |Cider/ Perry |1.5 |0.6 | |Total |236 |100 | |Source: Euromonitor, HSBC | Alcoholic beverages include beer, cider, ale, wine (including sparkling barley and rice wine) and spirits such as rum, whisky, brandy, vodka and gin. Almost 40 percent of the world’s alcoholic beverage consumption involves branded drinks that are usually owned by large multinationals investing substantially in marketing and brand management. While growth determined from developing economies provides volume expansion, the mature markets provide enhanced value. The transformation in consumption patterns arising from demographic changes is redefining product development and marketing in the global alcohol beverages sector. One of the key prevailing trends is premiumisation in developing economies, marked by a growing consumption of superior...
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