Why Coca Cola, Diet Coke and Pepsi are losing market share

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A study from Beverage Digest and the Beverage Marketing Corporation, released Tuesday, finds that non carbonated drinks are experiencing strong growth, with energy drinks are witnessing double-digit increases last year, Dasani, one of Atlanta-based Coke’s water lines, growing 11 percent and coffee growing by 9.4 percent.

Keeping these trends in mind, PepsiCo and Tata collaborated to create the nutrient based water line called Tata Water Plus, assumed to soon upstage PepsiCo’s Aquafina.

So why are new consumer preferences increasingly switched to energy drinks, water and teas? It could be that CPG companies are being undermined by their inability to predict and maintain margins due to soaring commodity prices. Meanwhile a long established brand manufacturer’s price premium has been eroded by the intensified emergence and penetration of private labels with high quality products that are effectively generic with their MNC counterparts. As a result, supermarkets have begun leveraging their new power over manufacturers, demanding room for margins in return for visible shelf space; more so worse is the intensification of regulators interested in verifying product claims and ensuring basic safety of product ingredients.

The carbonated beverage manufacturers need to tighten the control over their value chain by
a. bringing capabilities in house and start acquiring their bottlers.
b. investing in joint ventures and brand education programs that will generate local consumer insight
c. cater to the needs of the poor and middle class by locally adapting their portfolios.
d. directing resources towards identifying the limited private label penetration in innovation sensitive niches which reap high margins.

Managing Director of Sociality360, Program Director of the Fat Torching Plan™ at BodyBeat Recreational Centre and believer in summoning eagles as a mode of transport to destroy rings instead of walking across provinces. Facebook: http://www.facebook.com/babarkj Twitter: @babarkj LinkedIn: http://www.linkedin.com/in/babarjaved Email: babar.javed@sociality360.com

  • Ajayk 1992

    faltoo articles. I need a man inside me. grow up guys

  • http://www.facebook.com/profile.php?id=582077107 Rameez Javed

    Would you not agree to the point that people are becoming more health conscious now and carbonated drinks are discouraged by fitness coaches and people ? This can also be one reason for people to switch from carbonated drinks to other healthy sources.

  • Laila Lover

    this was a fun read. Why haven’t you written more?

  • http://www.facebook.com/shariqmushir Shariq Mushir

    What did you find faltoo about this particular article that triggered your intellect.

  • Ayaz Ali

    Haha – way to go Ms. Durrani!

  • m_ayaz_81

    What is so “Intellectual” either?

  • http://www.facebook.com/shariqmushir Shariq Mushir

    Why does it need to be intellectual or philosophical? It’s a blog with someone suggesting solutions to a perceived problem. It’s not as if the blogger’s suggestions would solve world hunger problems or bring long lasting peace between nations. Sometimes it’s best (better) to take things at face value than to try and read between the lines.

  • http://www.facebook.com/shariqmushir Shariq Mushir

    A very intellectual and inspirational response indeed. Thank you for setting a wonderful example.

  • Superior LLC

    I think the name was not click in market..