Financials on Coke Vs Pepsi
By: Edward • Case Study • 1,455 Words • December 14, 2009 • 1,514 Views
Essay title: Financials on Coke Vs Pepsi
In 1886, the Coca Cola Company was developed but it wasn’t until 1898 that the fierce competitor Pepsi-Cola entered into the market. These 2 companies are the two major players that dominate the consumer beverage (soft-drink) industry. Coke and Pepsi have since been competing to rein the global market in consumer beverages. The market of drinks in the United States alone is valued at more than thirty million dollars annually. With the growth of these two companies, PepsiCo has developed and acquired additional products outside the scope of just the consumer beverage industry, these products have helped the company to increase their exposure and position in the global market. This has not been the case for the Coca Cola Company; they have tried and have failed numerous times at expanding their product and marketing capabilities. Below is a list of key products offered by both Coca Cola and PepsiCo:
PepsiCo Coca Cola
Frito-Lay Brands Gatorade Brands Coca-Cola Brands
Lay's potato chips Gatorade Thirst Quencher A&W
Ruffles potato chips Gatorade Frost Thirst Quencher Coca Cola
Doritos tortilla chips Propel Fitness Water Canada Dry
Tostitos tortilla chips Tropicana Brands Dasani
Fritos corn chips Tropicana Pure Premium juices Diet (varieties)
Cheetos cheese flavored snacks Tropicana Pure Tropics juices Evian
Rold Gold pretzels & snack mix Dole juices (License) Fresca
Cracker Jack candy coated popcorn Quaker Brands Hi-C
Pepsi-Cola Brands Quaker Oatmeal Minute Maid
Pepsi-Cola Cap'n Crunch cereal Nestea
Diet Pepsi Life cereal Schweppes
Mountain Dew Aunt Jemima mixes & syrups Sprite
Sierra Mist (Regular & Diet) Quaker rice cakes
Slice Quaker Chewy granola bars
Lipton Brisk (Partnership) Quaker Dipps granola bars
Lipton Iced Tea(Partnership) Rice-A-Roni side dishes
Dole juices and juice drinks Pasta Roni side dishes
Aquafina purified drinking water Near East side dishes
SoBe juice drinks, dairy, and teas Quaker Fruit & Oatmeal bars
It is clearly evident upon reviewing these two company’s brand lists, that PepsiCo is much more diverse in their products and has presence in markets other than that of just the consumer beverage market. Although Coke Cola has a well known and successful brand in its beverage products, PepsiCo has a better chance of maintaining its positions in the global market due to its diversity among its various brands.
PepsiCo and Coca Cola are among the leading companies in many areas within the industry. Below are the major positions that each company holds in size and market share:
PepsiCo is the 3rd largest manufacturer of food and beverage products with a total just shy of 30 billion dollars in sales, while Coca Cola is the 5th largest manufacturer of food and beverage products with a total of 21.5 billion in sales. The products that both PepsiCo and Coke Cola concentrate their manufacturing efforts on are products that are easily consumed and/or prepared. Therefore, PepsiCo leads the sales in convenient food and beverage category, sustaining 22% of sales. Coca Cola also has a large percent of total sales in this category coming in under PepsiCo with 12%. One important thing to remember when evaluating PepsiCo and Coca Cola is that although PepsiCo may outperform Coca Cola in a number of key statistics, this is not the case when narrowing it down to the market which Coca Cola maintains its products, the consumer beverage (carbonated) products. In this category, Coca Cola outsells Pepsi Cola by a significant amount. Among U.S supermarkets, Coca Cola has retail sales of about 1700 (millions) and Pepsi Cola with only about 1400 (millions). When including the other brands from Frito Lay, Gatorade, and Tropicana, PepsiCo then has seven brands that rank within the top thirteen products sold at U.S. supermarkets. It begins to paint a different picture when evaluating the performance of PepsiCo and Coca Cola Company, then when evaluating the performance of the Pepsi Cola products with that of the Coca Cola products.
Stock price comparison between Coca Cola and PepsiCo: