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Vitamin Water Challenges

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Submitted By countdrak
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MACRO Challenges, Goals and Objectives
Regional and International Issues
Global sales of nonalcoholic beverages exceed $300 billion per year. Sales growth slowed during the late 2000s economic recession, but global sales are expected to exceed $400 billion by 2015, according to MarketLine. Functional drinks and bottled water will drive much of the industry's growth.
The largest soft drink and bottled water markets are North American, the EU, Japan, and Russia. Major nonalcoholic beverage manufacturers include Coca-Cola and PepsiCo (both headquartered in the US), Britvic (UK), Cott (Canada), Danone (France), Nestlé (Switzerland), Red Bull (Austria), and Suntory (Japan).
In terms of geographic distribution, sales of nonalcoholic beverages generally follow population patterns. Countries being targeted for industry growth include those with large populations and growing economies such as China, Brazil, India, Indonesia, and Mexico.
Because of the high cost of shipping beverages, manufacturers typically set up bottling and distribution operations in or near the international market they intend to serve. Beverage companies looking to establish international operations face a number of challenges, however. Building facilities overseas requires significant capital investments, and companies may face tariffs that restrict trade. Beverage makers are also subject to numerous laws regulating the production of food, a compliance challenge that multiplies in complexity as companies enter new markets.
In the US, soft drink and bottled water manufacturing is concentrated in California, Texas, Pennsylvania, Florida, and Indiana. Most smaller beverage producers make products for a local or regional market, capitalizing on different local tastes or selling their product at lower prices than national brands.

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