Beverage World - May 2008 - (Page 37) Cola FEMSA, jointly acquired Mexican juice packager Jugos del Valle. And just this year, Coca-Cola announced a 40 percent investment in Honest Tea, a Bethesda, Md., USA-based RTD tea and ade marketer. Coke has an option to buy the rest of the company in three years. PepsiCo too is hedging its bets. “We know that consumers have changing desires and we are transforming our beverage portfolio in response to these changes,” proclaimed PepsiCo in its 2007 annual report. Last year, for example, PepsiCo acquired Naked Juice and Izze. “In the US, Western Europe and a few other markets, there is an incredible, ever-broadening array of choices,” says Hemphill. Those markets have typically been the biggest for CSDs, he adds, “and when you have an explosion in segments and products, the volume has to come from somewhere.” Impacting CSD sales are products like flavored or enhanced water, which according to BMC, grew 30.6 percent in 2007, energy drinks (24.7 percent), RTD teas (15 percent) and bottled water (6.9 percent). The CSD world has long been dominated by three companies: CocaCola, PepsiCo and Cadbury Schweppes. Coca-Cola is by far the biggest soft drink THE BIG DIPPER company in the world, The US chugs nearly one-third of all CSDs. China has overtaken Germany in CSD consumption. with its various brands accounting for more SHARE OF GLOBAL CSD VOLUME, 2006 than half of all CSD volUS* ume. Pepsi has about a Mexico 30.1% 8.8% 20 percent share, followed by Cadbury Brazil Schweppes with only 56.2% 6 percent of global volOthers China** ume after having 46.0% 4.5% divested itself of much Germany of its drink business a 4.4% few years ago. “After * INCLUDES GUAM AND US VIRGIN ISLANDS; ** INCLUDES those three, there’s no TAIWAN; SOURCE: BEVERAGE MARKETING CORPORATION other company significantly close,” says Hemphill. Currently, Cadbury Schweppes is spinning BEVERAGEWORLD.COM http://BEVERAGEWORLD.COM
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