1. Cola Wars Continue: Coke and Pepsi in 2006 MGMT 495 Summer 2011

2. COCA COLA  Forward P/E Ratio (by 12/31/12)  15.43  EBITDA  15.04 PEPSI  Forward P/E Ratio (by 12/25/12)  14.18  EBITDA  10.68 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.

3.  U.S. Non-Alcoholic Beverage Domestic Competition Market Share http://www.wikinvest.com/stock/Coca-Cola_Company_%28KO%29

4.  Concentrate Producers  Promotion and market share  Agreements with nationwide retailers (Wal-Mart)  Fountain Sales ▪ Coke – Burger King, McDonalds, Subway, Wendy’s ▪ Pepsi – Pizza Hut, Taco Bell, KFC, Quiznos  New products: Diet, Zero, One…  Dr Pepper, Canada Dry, Philip Morris, Cadbury Schweppes  Bottlers  Bottling and canning (100 plants needed)  Master Bottle Contract 1899, 1987  Bottlers input: packaging, and sweeteners  Bottling refranchising: Coca-Cola Enterprises  Overseas bottlers

5.  Maintain quality relations with suppliers and competitors  Entering new markets: health oriented

6.  Retailers  Supermarkets 32.9%  Fountain outlets 23.4%  Vending machines 14.5%  Mass merchandisers 11.8%  Convenience stores and gas stations 7.9%  Other 9.5%

7.  Market Environment  Price wars  Bottlers relations  Deflationary market of CSD  Obesity  International Market  Coke ▪ Western Europe ▪ Latin America  Pepsi ▪ Middle East ▪ Southeast Asia ▪ Soviet bloc