Soda Companies' Sales Decline

As competition among beverage companies becomes tougher, Coca-Cola Co. and Pepsi Co. Inc. reported slumping sales and weak demand which started four years ago. Meanwhile, these two beverage giants are trying to boost its sales by employing different marketing and advertising strategies.

The top two soft-drinks manufacturers in the world are now looking for better marketing and packaging system to rev up sales in the US which reportedly skid to unprecedented four years in a row, reports told Tuesday.

Amid the worsening economic slump, Coca-Cola Co. and Pepsi Co Inc. together with other soda manufacturers in the US are now looking for solution after failing to jumpstart anew the beverage sales which has now reached a cumulative six percent drop over the last four years.

Studies conducted by the Beverage Digest showed that American consumers have “lost its appetite” to soft-drinks especially during the initial signs of economic crisis.

The group which is also in charge of tracking down soft-drinks sales in all vendors said that average American consumption of soft-drinks has continuously went down by 3 percent in 2008 alone. This was relatively steep compared to recorded drops in 2005 to 2007 which only averages 0.2, 0.6, and 2.3 percent each year.

Due to the current sales in the soft-drinks industry, it has now erased gains that the manufacturers made in seven years prior to 2005. Which in volume, can be calculated from 10.24 billion cases in 2004 to about 9.6 billion in 2008.

Energy drinks, alternative beverages, and enhanced H2O have contributed to the significant drop of soda’s sales.

1 Comment

  • Jim Stengel said on April 12, 2009
    The geniuses at Coke and Pepsi sought to increase profit by increasing prices 33% and give customers a smaller package-- absolutely brilliant--- except for the fact Americans are not that stupid-- these guys should be running the big brokerage houses. I have found a new appreciation for ice water.


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