Cola Wars Continue: Coke and Pepsi in 2006 MGMT 495 Summer 2011
COCA COLA Forward P/E Ratio (by 12/31/12) EBITDA PEPSI Forward P/E Ratio (by 12/25/12) EBITDA Coca Cola has a higher earnings before interest, taxes, depreciation and amortization, which means it has a greater ability to service its debt. Coca Cola has a higher Forward Price-Earnings Ratio, which means it is expected to yield higher earnings growth in the future.
U.S. Non-Alcoholic Beverage Domestic Competition Market Share
Rivals: Pepsi, Coca-Cola, Cadbury Schweppes Suppliers: Bottling Companies Contracts terms limited to non-competing other brands. 100 plants to keep up with distribution. Heavily relied on for profits. Did a lot of the marketing and distribution.
Customers: Supermarkets, fountain outlets, convenience stores, gas stations, fast food chains, etc. Fast food chains were bought to create more competition. Complements: Diet drinks Mergers: Pepsi with Frito Lay = PepsiCo Acquisitions: Coke bought MinuteMaid, Duncan Foods, and Belmont Spring Water
Substitutes: Beer, water, milk, coffee, wine, sports drinks, etc. Both acquired other companies to compete, ▪ Pepsi beat out Coke with the acquisition of Quaker Oats Change in the Market: International movement Obesity ▪ Federal Guidelines said CSD products were fattening ▪ Investments in water and diet products increased.