53057255

www.datamonitor.com Datamonitor USA

245 Fifth Avenue

4th Floor

New York, NY 10016

USA

t: +1 212 686 7400

f: +1 212 686 2626

e: [email protected]

Datamonitor Europe

119 Farringdon Road

London EC1R 3DA

United Kingdom

t: +44 20 7551 9000

f: +44 20 7675 7500


Datamonitor Middle East

and North America

Datamonitor

PO Box 24893

Dubai, UAE

t: +49 69 9754 4517

f: +49 69 9754 4900

e: datamonitormena@

datamonitor.com

Datamonitor Asia Pacific

Level 46, 2 Park Street

Sydney, NSW 2000

Australia

t: +61 2 8705 6900

f: +61 2 8705 6901


Global - Soft Drinks 0199 - 0802 - 2009

© Datamonitor. This profile is a licensed product and is not to be photocopied Page 1

INDUSTRY PROFILE

Global Soft Drinks

Reference Code: 0199-0802

Publication Date: July 2010

EXECUTIVE SUMMARY



EXECUTIVE SUMMARY

Market value

The global soft drinks market grew by 3.1% in 2009 to reach a value of $440.3 billion.

Market value forecast

In 2014, the global soft drinks market is forecast to have a value of $511.6 billion, an increase of 16.2%

since 2009.

Market volume

The global soft drinks market grew by 3.2% in 2009 to reach a volume of 398.7 billion liters.

Market volume forecast

In 2014, the global soft drinks market is forecast to have a volume of 465.4 billion liters, an increase of

16.7% since 2009.

Market segmentation I

Carbonates is the largest segment of the global soft drinks market, accounting for 42.5% of the market's

total value.

Market segmentation II

Americas accounts for 43.9% of the global soft drinks market value.

Market share

Coca-Cola Company, The is the leading player in the global soft drinks market, generating a 23.6% share

of the market's volume.

Market rivalry

The global soft drinks market is fairly fragmented and has leading players such as The Coca-Cola

Company, PepsiCo and Nestle.

CONTENTS



TABLE OF CONTENTS

EXECUTIVE SUMMARY 2

MARKET OVERVIEW 6

Market definition 6

Research highlights 7

Market analysis 8

MARKET VALUE 9

MARKET VOLUME 10

MARKET SEGMENTATION I 11

MARKET SEGMENTATION II 12

MARKET SHARE 13

COMPETITIVE LANDSCAPE 14

LEADING COMPANIES 17

Coca-Cola Company, The 17

PepsiCo, Inc. 22

Nestle S.A. 27

MARKET DISTRIBUTION 32

MARKET FORECASTS 33

Market value forecast 33

Market volume forecast 34

APPENDIX 35

Methodology 35

Industry associations 36

Related Datamonitor research 36

Disclaimer 38

ABOUT DATAMONITOR 39

Premium Reports 39

Summary Reports 39

Datamonitor consulting 39

CONTENTS



LIST OF TABLES

Table 1: Global soft drinks market value: $ billion, 2005–09(e) 9

Table 2: Global soft drinks market volume: billion liters, 2005–09(e) 10

Table 3: Global soft drinks market segmentation I:% share, by value, 2009(e) 11

Table 4: Global soft drinks market segmentation II: % share, by value, 2009(e) 12

Table 5: Global soft drinks market share: % share, by volume, 2009(e) 13

Table 6: Coca-Cola Company, The: key facts 17

Table 7: Coca-Cola Company, The: key financials ($) 20

Table 8: Coca-Cola Company, The: key financial ratios 20

Table 9: PepsiCo, Inc.: key facts 22

Table 10: PepsiCo, Inc.: key financials ($) 25

Table 11: PepsiCo, Inc.: key financial ratios 25

Table 12: Nestle S.A.: key facts 27

Table 13: Nestle S.A.: key financials ($) 29

Table 14: Nestle S.A.: key financials (CHF) 30

Table 15: Nestle S.A.: key financial ratios 30

Table 16: Global soft drinks market distribution: % share, by volume, 2009(e) 32

Table 17: Global soft drinks market value forecast: $ billion, 2009–14 33

Table 18: Global soft drinks market volume forecast: billion liters, 2009–14 34

CONTENTS



LIST OF FIGURES

Figure 1: Global soft drinks market value: $ billion, 2005–09(e) 9

Figure 2: Global soft drinks market volume: billion liters, 2005–09(e) 10

Figure 3: Global soft drinks market segmentation I:% share, by value, 2009(e) 11

Figure 4: Global soft drinks market segmentation II: % share, by value, 2009(e) 12

Figure 5: Global soft drinks market share: % share, by volume, 2009(e) 13

Figure 6: Coca-Cola Company, The: revenues & profitability 21

Figure 7: Coca-Cola Company, The: assets & liabilities 21

Figure 8: PepsiCo, Inc.: revenues & profitability 26

Figure 9: PepsiCo, Inc.: assets & liabilities 26

Figure 10: Nestle S.A.: revenues & profitability 31

Figure 11: Nestle S.A.: assets & liabilities 31

Figure 12: Global soft drinks market distribution: % share, by volume, 2009(e) 32

Figure 13: Global soft drinks market value forecast: $ billion, 2009–14 33

Figure 14: Global soft drinks market volume forecast: billion liters, 2009–14 34

MARKET OVERVIEW



MARKET OVERVIEW

Market definition

The soft drinks market consists of retail sale of bottled water, carbonates, concentrates, functional drinks,

juices, RTD tea and coffee, and smoothies. However, the total market volume for soft drinks market

excludes the concentrates category. The market is valued according to retail selling price (RSP) and

includes any applicable taxes. Any currency conversions used in the creation of this report have been

calculated using constant 2009 annual average exchange rates.

For the purpose of this report, the global market consists of Americas, Europe, and Asia-Pacific.

Americas consists of the United States, Canada, Mexico, Argentina, Brazil, Chile, Colombia, and

Venezuela.

Europe comprises Belgium, Denmark, France, Germany, Italy, the Netherlands, Norway, Spain,

Sweden,United Kingdom, Czech Republic, Hungary, Poland, Romania, Russia, and Ukraine.

Asia-Pacific comprises Australia, China, India, Japan, Singapore, South Korea, and Taiwan.

MARKET OVERVIEW



Research highlights

The global soft drinks market generated total revenues of $440.3 billion in 2009, representing a

compound annual growth rate (CAGR) of 3.5% for the period spanning 2005-2009.

Carbonates sales proved the most lucrative for the global soft drinks market in 2009, generating total

revenues of $187.2 billion, equivalent to 42.5% of the market's overall value.

The performance of the market is forecast to decelerate, with an anticipated CAGR of 3.0% for the five-

year period 2009-2014, which is expected to lead the market to a value of $511.6 billion by the end of

2014.

MARKET OVERVIEW



Market analysis

The global soft drinks market grew at a steady rate during the period 2005-2009, as a result of steady

sales growth in the bottled water, functional drinks, and RTD tea and coffee categories. The overall

market growth is expected to decelerate in the forthcoming five years.

The global soft drinks market generated total revenues of $440.3 billion in 2009, representing a

compound annual growth rate (CAGR) of 3.5% for the period spanning 2005-2009. In comparison, the

Americas and Asia-Pacific markets grew with CAGRs of 2.8% and 4.8% respectively, over the same

period, to reach respective values of $188.3 billion and $91.1 billion in 2009.

Market consumption volumes increased with a CAGR of 3.8% between 2005 and 2009, to reach a total of

398.7 billion liters in 2009. The market's volume is expected to rise to 465.4 billion liters by the end of

2014, representing a CAGR of 3.1% for the 2009-2014 period.

Carbonates sales proved the most lucrative for the global soft drinks market in 2009, generating total

revenues of $187.2 billion, equivalent to 42.5% of the market's overall value. In comparison, sales of

bottled water generated revenues of $83.3 billion in 2009, equating to 18.9% of the market's aggregate

revenues.

The performance of the market is forecast to decelerate, with an anticipated CAGR of 3.0% for the five-

year period 2009-2014, which is expected to lead the market to a value of $511.6 billion by the end of

2014. Comparatively, the Americas and Asia-Pacific markets will grow with CAGRs of 2% and 5.2%

respectively, over the same period, to reach respective values of $207.5 billion and $117.2 billion in 2014.

MARKET VALUE



MARKET VALUE

The global soft drinks market grew by 3.1% in 2009 to reach a value of $440.3 billion.

The compound annual growth rate of the market in the period 2005–09 was 3.5%.

Table 1: Global soft drinks market value: $ billion, 2005–09(e)

Year $ billion € billion % Growth

2005 384.0 276.1

2006 398.6 286.7 3.8

2007 414.2 297.9 3.9

2008 427.0 307.1 3.1

2009(e) 440.3 316.6 3.1

CAGR: 2005–09 3.5%

Source: Datamonitor D A T A M O N I T O R

Figure 1: Global soft drinks market value: $ billion, 2005–09(e)


MARKET VOLUME



MARKET VOLUME

The global soft drinks market grew by 3.2% in 2009 to reach a volume of 398.7 billion liters.

The compound annual growth rate of the market in the period 2005–09 was 3.8%.

Table 2: Global soft drinks market volume: billion liters, 2005–09(e)

Year billion liters % Growth

2005 343.5

2006 358.5 4.4

2007 373.9 4.3

2008 386.2 3.3

2009(e) 398.7 3.2

CAGR: 2005–09 3.8%


Figure 2: Global soft drinks market volume: billion liters, 2005–09(e)


MARKET SEGMENTATION I



MARKET SEGMENTATION I

Carbonates is the largest segment of the global soft drinks market, accounting for 42.5% of the market's

total value.

The bottled water segment accounts for a further 18.9% of the market.

Table 3: Global soft drinks market segmentation I:% share, by value, 2009(e)

Category % Share

Carbonates ��Ĥ��Ŧ

Bottled water 18.9%

Juices 16.2%

Functional drinks 9.5%

RTD tea & coffee 9.1%

Others 3.8%

Total 100%


Figure 3: Global soft drinks market segmentation I:% share, by value, 2009(e)


MARKET SEGMENTATION II



MARKET SEGMENTATION II

Americas accounts for 43.9% of the global soft drinks market value.

Europe accounts for a further 36.3% of the global market.

Table 4: Global soft drinks market segmentation II: % share, by value, 2009(e)

Category % Share

Americas 43.9%

Europe 36.3%

Asia-Pacific 19.8%

Total 100%


Figure 4: Global soft drinks market segmentation II: % share, by value, 2009(e)


MARKET SHARE



MARKET SHARE

Coca-Cola Company, The is the leading player in the global soft drinks market, generating a 23.6% share

of the market's volume.

PepsiCo, Inc. accounts for a further 13.7% of the market.

Table 5: Global soft drinks market share: % share, by volume, 2009(e)

Company % Share

Coca-Cola Company, The 23.6%

PepsiCo, Inc. 13.7%

Nestle S.A. 5.5%

Others 57.3%

Total 100%


Figure 5: Global soft drinks market share: % share, by volume, 2009(e)


COMPETITIVE LANDSCAPE




The soft drinks market will be analyzed taking manufacturers of soft drinks as players. The key buyers will

be taken as distributors and retailers of soft drinks, and producers of packaging, soft drinks ingredients

and other raw materials as the key suppliers.

The global soft drinks market is fairly fragmented and has leading players such as The Coca-Cola

Company, PepsiCo and Nestle.

Supermarkets/hypermarkets form the most significant distribution channel in the global market. The

presence of big supermarket chains increases buyer power. Players in this market may opt for an

integrated business, in which they sell ready-to-consume drinks to retailers, or they may adopt a business

model in which they sell raw materials (concentrates) to a network of bottling companies, which may be

independent companies or owned to some extent by the players. The buyer power of retailers in this

market is moderate. Supplier power is not great, as most inputs are readily available commodities. New

entrants must contend with the global reach and strong brands enjoyed by the incumbents, although

niche markets such as smoothies can still be exploited. There is no great threat posed by the soft drinks'

substitutes except from traditional coffee and tea or homemade juices. The rivalry level is moderate;

although major players are fighting for a dominant position.

The soft drinks market will be analyzed by taking manufacturers such as The Coca-Cola Company or

PepsiCo as market players, distributors and retailers as buyers and producers of packaging, soft drinks

ingredients and other raw materials as suppliers. The global food and drink retail market is concentrated

in terms of distribution channels, with the key distribution channel being supermarkets/hypermarket

(47.9% of the market volume). The leading players generate most of their revenue from the production of

concentrates, which are sold to bottling companies. Some bottlers are independent, others are owned by

the big-name manufacturers described usually as 'partners' and 'customers'. The bottlers are licensed to

convert purchased raw materials into soft drinks, packaged with the manufacturers' branding, and

distribute the ready for sale commodities to buyers within a particular sales territory. Although majority of

bottlers are free to make their own business decisions, the close ties between manufacturers and bottlers

means that food and beverage retailers are arguably the more significant buyers from the point of view of

market players. The consolidation degree in the food and beverage retail markets varies considerably

from country to country. Majority of the soft drinks market in Europe are highly concentrated and the

buyer power is strengthened by this fact, however, developing economies are characterized by

fragmented food and beverage markets such as China. Here the buyer power is relatively weak.

Consumers in this market are likely to be strongly influenced by brand, and this weakens buyer power as

retailers are forced to stock brands popular among consumers. This is strengthened by the broad

differentiation of the market's products. Overall, buyer power is moderate.

Primary inputs for soft drinks manufacturers include concentrates, a range of natural and synthetic

sweeteners such as corn syrup and refined sugar (sucrose), aspartame, and similar ingredients. Some of

these commodities, although available from several sources, are subject to price fluctuations. Others (e.g.




aspartame) are available from only one or two major players. However, even in these cases, there are

usually substitutes available. For example, if aspartame becomes expensive or unobtainable then it can

be substituted by saccharine and other similar products. Water, which is the major input, may raise the

concerns of multinational players, especially in some countries, where water scarcity is a risk factor for

their business. The power of packaging manufacturers is growing since there is a growing demand for

more consumer friendly form of packages. Advertising and marketing agencies also play significant role in

the brand building process in the soft drinks market. Years of consolidation have left the advertising

industry highly concentrated in most countries, strengthening supplier power to some extent. The

consumers in the US and European countries are switching to low sugar and sodium products, which

requires certain different production methods. Overall, supplier power is moderate in this market.

Players in the global soft drinks market try to distinguish their products to some extent by stressing their

health benefits (especially for juices and functional drinks) and taste. Although it would be difficult for a

new entrant to compete with the brand strength and reach of existing players, it may be possible to

achieve small-scale success stressing a unique production method or nutritional benefits. Even if a new

player opts for a business model in which much of the production process is performed by bottling

partners under license, there will still be a need to invest in manufacturing capacity in order to produce the

concentrates. This will generally be fairly capital-intensive and restrict market entry to players. However,

market niches can be exploited by new entrants. For example, the UK company, Innocent, developed fruit

smoothie products whose brand stressed purity and freshness of ingredients. There is also a trend of

moving away the primary target audience such as the under 15 year olds and focus on all age groups,

giving the new entrants the opportunity to fill the niche. This, together with the expected shift towards fruit

juice, enhances the chance of market entry. Overall, there is a moderate likelihood of new entrants.

The substitutes for soft drinks primarily include traditional tea and coffee, and homemade juices to name

a few. Leading players tend to have diverse product ranges, which reduces the threat posed by

substitutes. For example, Nestle is a major player in the coffee market as well as a range of soft drinks,

such as mineral water. Switching in the sense of allocating more shelf space to the substitutes may be

advantageous in cost terms (substitutes may be stored at room temperature). This may be especially

beneficial in countries where electricity is relatively expensive like in India. Overall, there is a moderate

threat from substitutes.

The global soft drinks market is fairly fragmented, with the leading players such as The Coca-Cola

Company, PepsiCo and Nestle collectively accounting for 42.7% of the market volume. This indicates that

some smaller players may be still successful in this market. Switching costs for retailers are not

prohibitive, which boosts rivalry. The ease of exit depends to some extent on the business model of the

company. A company which manufactures ready-for-consumption soft drinks in a single integrated

process will need to dispose assets such as specialized equipment in order to exit the market. On the

other hand, a company of the same size that operates in conjunction with a network of bottling partners

will tend to have fewer assets, and exit is therefore easier. As this model is adopted by the two leading

players, rivalry in the global market is correspondingly reduced. The slow growth of the market marginally




increases the intensity of rivalry. Overall, there is a moderate degree of rivalry in the global soft drinks

market.

LEADING COMPANIES



LEADING COMPANIES

Coca-Cola Company, The

Table 6: Coca-Cola Company, The: key facts

Head office: One Coca-Cola Plaza, Atlanta, Georgia 30313, USA

Telephone: 1 404 676 2121

Fax: 1 404 515 6428

Website: www.thecoca-colacompany.com

Financial year-end: December

Ticker: KO

Stock exchange: New York

Source: company website D A T A M O N I T O R

The Coca-Cola Company (TCCC) is engaged in the manufacturing, distribution and marketing of non-

alcoholic beverage concentrates and syrups. The company owns the world’s most valuable brand: Coca-

Cola. Furthermore, TCCC markets four of the world's top five nonalcoholic sparkling brands, including

Diet Coke, Fanta and Sprite. The company offers a portfolio of more than 3,300 products in over 200

countries worldwide.

The company primarily produces sparkling beverages, and also a variety of still beverages. TCCC

manufactures beverage concentrates and syrups, which it sells to bottling and canning operations,

fountain wholesalers and retailers. The company also manufactures finished beverages. TCCC owns or

licenses nearly 500 brands, including diet and light beverages, waters, enhanced waters, juice and juice

drinks, teas, coffees, and energy and sports drinks. In addition, the company has ownership interests in a

number of bottling and canning operations, most of which are independently owned and managed.

Most of TCCC's products are manufactured and sold by bottling partners, who convert them into finished

packaged products for sale to distributors and other customers. The company sells the concentrates and

syrups for bottled and canned beverages to authorized bottling and canning operations. Authorized

bottlers and canners either combine syrups with sparkling water or combine concentrates with

sweeteners (depending on the product), still water and sparkling water to produce finished sparkling

beverages. These sparkling beverages are packaged in cans, glass and plastic bottles, and sold to

wholesalers and retailers.

In addition to selling concentrates and syrups for making sparkling beverages and flavored still

beverages, the company sells concentrates for purified water products such as Dasani to authorized

bottling operations.

LEADING COMPANIES



For its fountain products in the US, TCCC manufactures fountain syrups and sells these to authorized

fountain wholesalers and retailers. Outside the US, fountain syrups are manufactured by authorized

bottlers from concentrates procured from the company. These fountain syrups are sold by bottlers to

wholesalers or directly to fountain retailers.

TCCC manufactures a variety of still beverages which are sold to authorized bottlers or distributors,

wholesalers or directly to retailers. The juices and juice-drink products, and certain water products

manufactured by the company are sold to retailers and wholesalers in the US and several other countries,

both directly and through a network of business partners.

Most of the company's properties are located in the US. TCCC has facilities for administrative operations,

manufacturing, processing, packaging, packing, storing and warehousing throughout the US and Canada.

As of December 2009, TCCC owned and operated 29 principal beverage concentrate and/or syrup

manufacturing plants located throughout the world. In addition, TCCC owns or holds a majority interest in

112 principal beverage bottling and canning plants located throughout the world. These plants are

included in the Bottling Investments operating segment.

The principal raw materials used by TCCC are nutritive and non-nutritive sweeteners. In the US, the

company uses high fructose corn syrup as a nutritive sweetener, whereas outside the US it uses sucrose.

The company uses aspartame, acesulfame potassium, saccharin, cyclamate and sucralose as non-

nutritive sweeteners. For juice and juice-drink products, the company uses citrus fruit, particularly orange

juice concentrate, as raw material.

Coca-Cola is the most popular and biggest-selling soft drink of TCCC. The product was first offered as a

fountain beverage by mixing Coca-Cola syrup with carbonated water. Coca-Cola was introduced in 1886,

patented in 1887, registered as a trademark in 1893, and by 1895, it was being sold in every state and

territory in the US. TCCC’s other popular soft drinks brands offered around the globe includes Beat,

Canada Dry, Canning’s, Cheers, Cherry Coke, Citra, Diet Barq’s, Diet Coke, Fanta, Limca, Sprite and

Vault. The company has more than 100 juice and juice drink brands available in 145 countries worldwide.

TCCC produces and markets a wide range of juice and juice-drink products, including Minute Maid juices

and juice drinks; Simply juices and juices drinks; Cappy juices; Odwalla nourishing health beverages; Five

Alive Refreshment beverages; and Bacardi Mixers concentrate.

In November 2009, TCCC unveiled a new visual identity for key brands in its family of juice beverages.

The new and uniform packaging design system unites key brands in the company's juice portfolio,

including Minute Maid, Del Valle, Andina and Cappy, under a single, iconic brand identity.

TCCC operates its business through six business segments: North America, Eurasia and Africa, Europe,

Latin America, Pacific, and Bottling investments. TCCC also reports a non-operating segment: corporate.

The company has divided its operations into segments based on geographic operations.

LEADING COMPANIES



The North American business segment consists of the company’s operations in the US, Canada, Puerto

Rico, the Virgin Islands, and the Cayman Islands. The segment operates three business units, sparkling

beverages, still beverages and emerging brands. The North American business segment operates nine

still beverage production facilities, four bottled water facilities, leases one bottled water facility, and owns

a facility that manufactures juice concentrates.

The Eurasia business segment covers about 43 countries starting from Eastern Europe and Russia in the

North to the Middle East and India in the South. The company’s operations are spread across 56

countries and territories in nearly all of continental Africa, and in the Indian Ocean islands of Mauritius and

Seychelles.

The Europe business segment covers 29 countries spread across Eastern and Western Europe.

The Latin American business segment comprises TCCC’s operations in Central and South America and

the Caribbean region.

The Pacific business segment encompasses the company’s operations in Philippines, Korea, and China.

In addition, the segment includes operations in Southeast, West Asia and South Pacific countries. In June

2009, Coca-Cola, along with its bottling partner, COFCO Coca-Cola Beverages, opened two new bottling

facilities in central and western China.

The bottling investment business segment operates across five continents.

Key Metrics

The Coca-Cola Company generated revenues of $31 billion in the financial year (FY) ended December

2009, a decrease of 3% compared to 2008. The company's net income totaled $6.8 billion in FY2009, an

increase of 17.5% over 2008.

Eurasia and Africa accounted for 6.4% of the total revenues in FY2009. Revenues from Eurasia and

Africa reached $2 billion in FY2009, a decrease of 7.4% compared to 2008.

Europe accounted for 13.9% of the total revenues in FY2009. Revenues from Europe reached $4.3 billion

in FY2009, a decrease of 10% compared to 2008.

Latin America accounted for 11.9% of the total revenues in FY2009. Revenues from Latin America

reached $3.7 billion in FY2009, an increase of 2.1% over 2008.

North America accounted for 26.4% of the total revenues in FY2009. Revenues from North America

reached $8.2 billion in FY2009, a decrease of 0.2% compared to 2008.

LEADING COMPANIES



Pacific accounted for 14.6% of the total revenues in FY2009. Revenues from Pacific reached $4.5 billion

in FY2009, an increase of 4% over 2008.

Bottling investments accounted for 26.4% of the total revenues in FY2009. Revenues from Bottling

investments reached $8.2 billion in FY2009, a decrease of 6.2% compared to 2008.

Corporate accounted for 0.3% of the total revenues in FY2009. Revenues from Corporate reached $88

million in FY2009, a decrease of 17.8% compared to 2008.

Table 7: Coca-Cola Company, The: key financials ($)

$ million 2005 2006 2007 2008 2009

Revenues 23,104.0 24,088.0 28,857.0 31,944.0 30,990.0

Net income (loss) 4,872.0 5,080.0 5,981.0 5,807.0 6,824.0

Total assets 29,427.0 29,963.0 43,269.0 40,519.0 48,671.0

Total liabilities 13,072.0 13,043.0 21,525.0 19,657.0 23,325.0

Employees 55,000 71,000 90,500 92,400 92,800

Source: company filings D A T A M O N I T O R

Table 8: Coca-Cola Company, The: key financial ratios

Ratio 2005 2006 2007 2008 2009

Profit margin 21.1% 21.1% 20.7% 18.2% 22.0%

Revenue growth 6.3% 4.3% 19.8% 10.7% (3.0%)

Asset growth (6.1%) 1.8% 44.4% (6.4%) 20.1%

Liabilities growth (15.1%) (0.2%) 65.0% (8.7%) 18.7%

Debt/asset ratio 44.4% 43.5% 49.7% 48.5% 47.9%

Return on assets 16.0% 17.1% 16.3% 13.9% 15.3%

Revenue per employee $420,073 $339,268 $318,862 $345,714 $333,944

Profit per employee $88,582 $71,549 $66,088 $62,846 $73,534


LEADING COMPANIES



Figure 6: Coca-Cola Company, The: revenues & profitability


Figure 7: Coca-Cola Company, The: assets & liabilities


LEADING COMPANIES



PepsiCo, Inc.

Table 9: PepsiCo, Inc.: key facts

Head office: 700 Anderson Hill Road, Purchase, New York 10577, USA

Telephone: 1 914 253 2000

Fax: 1 914 253 2070

Website: www.pepsico.com


Ticker: PEP

Stock exchange: New York


PepsiCo is one of the leading global beverage, snack and food companies. It manufactures, markets, and

sells a variety of salty, sweet and grain-based snacks; and carbonated and non-carbonated beverages in

approximately 200 countries across the world. The company has its largest operation in North America

(the US and Canada), Mexico and the UK.

PepsiCo operates through three business units: PepsiCo Americas Foods (PAF), PepsiCo Americas

Beverages (PAB), and PepsiCo International (PI). The company's three business units are further divided

into six reportable segments: Frito-Lay North America (FLNA), Quaker Foods North America (QFNA),

Latin America Foods (LAF), PepsiCo Americas Beverages (PAB), Europe, and Asia, Middle East and

Africa (AMEA).

The company's PAF business division includes FLNA, QFNA, and LAF, including Sabritas and Gamesa

businesses in Mexico.

FLNA markets and distributes branded snacks. These snacks include Lay's potato chips, Doritos tortilla

chips, Tostitos tortilla chips, Cheetos cheese flavored snacks, Fritos corn chips, branded dips, Ruffles

potato chips, Quaker Chewy granola bars, and Sun Chips multigrain snacks. In addition, FLNA's joint

venture with Strauss Group produces and sells Sabra refrigerated dips. FLNA branded products are sold

to independent distributors and retailers. FLNA also owns or leases approximately 40 food manufacturing

and processing plants and approximately 1,830 warehouses, distribution centers and offices.

QFNA manufactures, markets, and sells cereals, rice, pasta and other branded products in the US and

Canada. QFNA's products also include Quaker oatmeal, Aunt Jemima mixes and syrups, Cap'n Crunch

cereal, Quaker grits, Life cereal, Rice-A-Roni, Pasta Roni and Near East side dishes. The company sells

LEADING COMPANIES



all these products to independent distributors and retailers. QFNA utilizes approximately 25

manufacturing plants and production processing facilities in North America.

LAF markets and sells salty and sweet snack brands including Gamesa, Doritos, Cheetos, Ruffles,

Sabritas and Lay’s in Brazil, Argentina, Colombia, Peru and Venezuela. It owns or leases approximately

50 food manufacturing and processing plants and approximately 640 warehouses, distribution centers

and offices.

PAB division includes PepsiCo Beverages North America (PBNA) and Latin American beverage

businesses. PAB sells beverage concentrates, fountain syrups and finished goods under various

beverage brands including Pepsi, Mountain Dew, Gatorade, Tropicana Pure Premium, Lipton, Sierra Mist,

Tropicana juice drinks, Naked juice, Propel, Dole and SoBe Lifewater. PAB also manufactures or uses

contract manufacturers to market and sell ready-to-drink tea, coffee and water products through joint

ventures with Unilever (under the Lipton brand name) and Starbucks. In addition, the business division

has licensed the Aquafina water brand to its bottlers.

PAB owns or leases approximately 20 plants and production processing facilities and approximately 65

warehouses, distribution centers and offices. In addition, the company has an ownership interest in

approximately 80 bottling plants and 220 distribution centers. The company’s contract manufacturers or

co-packers also own or lease approximately 55 plants and production processing facilities and

approximately 50 warehouses and distribution centers.

The PI business division includes PepsiCo's businesses in Europe, and AMEA. Europe markets and sells

salty and sweet snack brands including Doritos, Cheetos, Ruffles, Lay’s and Walkers. It also sells

beverage concentrates and fountain syrup under various beverage brands including Pepsi, 7UP and

Tropicana. In addition, Europe licenses the Aquafina water brand to certain of its authorized bottlers. It

also manufactures and markets ready-to-drink tea products through an international joint venture with

Unilever (under the Lipton brand name). In Europe, the company owns or leases approximately 40 plants

and 370 warehouses, distribution centers and offices. In addition, it utilizes one plant and production

processing facility and two distribution centers that are co-owned or co-leased with a joint venture partner.

AMEA manufactures and markets salty and sweet snack brands including Lay's, Kurkure, Chipsy, Red

Rock Deli, Cheetos, Doritos, Ruffles and Smith’s. The division also manufactures, markets, and sells

beverage concentrates, fountain syrups and finished goods under the brands Pepsi, 7UP, Mirinda and

Mountain Dew. These brands are sold to authorized bottlers, independent distributors and retailers.

AMEA owns or leases approximately 80 plants and 1,100 warehouses, distribution centers and offices. It

also utilizes approximately 40 properties owned by contract manufacturers or co-packers.

PepsiCo manufactures and markets range of soft drinks brands globally, through its beverage units, PAB

and PI. Its North American brands include Pepsi, Mountain Dew, Sierra Mist, Izze, SoBe, Mug, Tropicana,

LEADING COMPANIES



Dole and Ocean Spray. International soft drinks brands include Pepsi, Mirinda, 7UP, Teem, Fruko, Shani,

Fiesta, Evervess and Manzanita Sol.

The company has significant customer base. In 2009, the company’s sales to top five retail customers

accounted for approximately 33% of its revenues from North America, with Wal-Mart (including Sam’s

Club) representing approximately 19%.

Key Metrics

PepsiCo generated revenues of $43.2 billion in the (FY) ended December 2009, a decrease of 0.04%

compared to 2008. The company's net income totaled $5.9 billion in FY2009, an increase of 15.6% over

2008.

FLNA accounted for 30.6% of the total revenues in FY2009. Revenues from FLNA reached $13.2 billion

in FY2009, an increase of 5.7% over 2008.

QFNA accounted for 4.4% of the total revenues in FY2009. Revenues from QFNA reached $1.9 billion in

FY2009, a decrease of 0.9% compared to 2008.

LAF accounted for 13.2% of the total revenues in FY2009. Revenues from LAF reached $5.7 billion in


PAB accounted for 23.4% of the total revenues in FY2009. Revenues from PAB reached $10.1 billion in


Europe accounted for 15.6% of the total revenues in FY2009. Revenues from Europe reached $6.7 billion

in FY2009, a decrease of 2.4% compared to 2008.

AMEA accounted for 12.9% of the total revenues in FY2009. Revenues from AMEA reached $5.6 billion

in FY2009, an increase of 9% over 2008.

LEADING COMPANIES



Table 10: PepsiCo, Inc.: key financials ($)

$ million 2005 2006 2007 2008 2009

Revenues 32,562.0 35,137.0 39,474.0 43,251.0 43,232.0

Net income (loss) 4,078.0 5,642.0 5,658.0 5,142.0 5,946.0

Total assets 31,727.0 29,930.0 34,628.0 35,994.0 39,848.0


Employees 157,000 168,000 185,000 198,000 203,000


Table 11: PepsiCo, Inc.: key financial ratios

Ratio 2005 2006 2007 2008 2009

Profit margin 12.5% 16.1% 14.3% 11.9% 13.8%

Revenue growth 11.3% 7.9% 12.3% 9.6% N.M

Asset growth 13.4% (5.7%) 15.7% 3.9% 10.7%

Liabilities growth 20.8% (16.7%) 19.4% 34.6% (4.3%)

Debt/asset ratio 55.1% 48.7% 50.2% 65.0% 56.2%

Return on assets 13.7% 18.3% 17.5% 14.6% 15.7%




LEADING COMPANIES



Figure 8: PepsiCo, Inc.: revenues & profitability


Figure 9: PepsiCo, Inc.: assets & liabilities


LEADING COMPANIES



Nestle S.A.

Table 12: Nestle S.A.: key facts

Head office: Avenue Nestle 55, Vevey 1800, SUI

Telephone: 41 21 9242111

Fax: 41 21 9244800

Website: www.nestle.com


Ticker: NESN

Stock exchange: Switzerland


Nestle is one of the leading food and beverage companies in the world. The company's products include

beverages, milk based products, ice creams, prepared dishes, and pharmaceutical products. Nestle

operates in Europe, the Americas, Asia and Africa.

Nestle's primary operating segments are divided into three geographic zones and four globally managed

businesses. The three geographic zones are Zone Europe, Zone Americas, and Zone Asia, Oceania and

Africa. However, the company's four globally managed businesses include Nestle Waters, Nestle

Nutrition, Other Food and Beverages, and Pharma.

The Nestle Waters produces and markets bottled water under Pure Life, Aquarel, Acqua Panna, Vittel,

and Vera brand names among others.

The Nestle nutrition business comprises four sub-business divisions: infant nutrition, healthcare nutrition,

performance nutrition, and weight management. The key products in the infant sub division include

cereals, meals and drinks for babies and infants, which the company markets under Nestum, Mucilon,

Cerelac, and Gerber brand names. The healthcare sub division primarily offers nutritionally enriched food

products and drinks under Nutren, Clinutren, Boost, Peptamen and Modulen brand names. The

performance nutrition division provides sports nutrition products under PowerBar and Musashi brand

names. Jenny Craig is a weight management company offering consumers a range of branded nutritional

products and services in the US, Canada, Australia and New Zealand.

Nestle also operates through six divisions that are organized along product groups. These include:

beverage; milk products, nutrition and ice cream; prepared dishes and cooking aids; confectionery; pet

care products; and pharmaceutical products.

LEADING COMPANIES



The key products of the beverage division include coffee, chocolate-based and malted drinks, bottled

water, and fruit juices. Its key coffee product brands include Nescafe, Nespresso, Taster's Choice, Ricore,

Ricoffy, Bonka, Zoégas, and Loumidis. Nescafe, the flagship soluble coffee product of this division, is one

of the leading brands in the world. The company's coffee range also includes Nespresso (espresso coffee

in capsules). Nestle also produces chocolate-based and malted drinks. Its leading brands include

Nesquik, Milo and Nescau. Nestle Pure Life, under the Nestle Waters segment, is the biggest water brand

in the world and is present in both emerging markets and North America. Nestle also produces fruit juices

under the brand names Juicy Juice (formerly known as Libby's).

The prepared dishes and cooking aids division includes frozen and chilled, culinary and other businesses.

Its popular brands include Hot Packets, Stouffer's, Lean Cuisine, Nestle Bake It, and Torchin. This

division also includes the breakfast cereals business of Nestle that produces cereal and performance bars

and cereals catering to a wide range of age groups.

The milk products, nutrition and ice cream division includes three main businesses. The milk products

division produces powdered milk, yoghurts and desserts among others. Its popular brands include Coffee-

Mate, Nido, Everyday, and La Laitiere.

The ice cream business division offers products such as ice cream tubs, waffle cones, and ice cream

bars. The company key includes brands in this segment include Haagen-Dazs, La Cremeria, Movenpick,

Extreme, Dibs, Dreyer's Edy's, and Drumstick.

The confectionery division mainly primarily offers chocolates and chocolate based candies. The

segment's products are offered under Aero, Butterfinger, Cailler, Crunch, Kit Kat, Orion, and Smarties

brand names.

The pet care products division offers food products for cats and dogs. The company offers these products

under Purina, Friskies, Fancy Feast, Alpo, Gourmet, Mon Petit, Felix, Dog Chow, Cat Chow, Pro Plan,

Purina One, Beneful, and Tidy Cats brand names.

The pharmaceutical products division of Nestle includes the joint-ventures with pharmaceutical and

cosmetic companies such as L'Oreal, Galderma and Laboratories Inneov.

In November 2009, Nestle Professional, a part of Nestle, announced an agreement to acquire Vitality

Foodservice, one of the North America's leading manufacturers and marketers of beverages such as

juices, teas, coffees and smoothies.

In January 2010, the company sold its stake in Alcon, representing around 52% of the company's issued

and outstanding share capital for a total of around $28 billion in cash to Novartis.

In March 2010, Nestle completed the acquisition of Kraft Foods' frozen pizza business.

LEADING COMPANIES



Key Metrics

Nestle generated revenues of $99.1 billion in the financial year (FY) ended December 2009, a decrease

of 2.1% compared to 2008. The company's net income totaled $9.6 billion in FY2009, a decrease of

42.2% compared to 2008.

Nestle waters accounted for 8.4% of the total revenues in FY2009. Revenues from Nestle waters reached

$8.3 billion in FY2009, a decrease of 5.5% compared to 2008.

Nestle nutrition accounted for 9.3% of the total revenues in FY2009. Revenues from Nestle nutrition

reached $9.2 billion in FY2009, a decrease of 4% compared to 2008.

Other food and beverages accounted for 9.5% of the total revenues in FY2009. Revenues from other food

and beverages reached $9.4 billion in FY2009, a decrease of 0.5% compared to 2008.

Zone Europe accounted for 20.9% of the total revenues in FY2009. Revenues from Zone Europe reached

$20.7 billion in FY2009, a decrease of 10.2% compared to 2008.

Zone Americas accounted for 29.9% of the total revenues in the FY2009. Revenues from Zone Americas

reached $29.6 billion in FY2009, an increase of 2.6% over 2008.

Zone Asia, Oceania and Africa accounted for 14.8% of the revenues in FY2009. Revenues from Zone

Asia, Oceania and Africa reached $14.6 billion in FY2009, an increase of 1.2% over 2008.

Table 13: Nestle S.A.: key financials ($)

$ million 2005 2006 2007 2008 2009

Revenues 83,818.6 90,573.6 98,939.3 101,106.7 99,000.0

Net income (loss) 7,433.9 8,460.5 9,796.2 16,594.5 9,592.9

Total assets 94,492.4 93,652.5 106,123.0 97,709.4 102,033.9


Employees 250,000 265,000 276,000 283,000 278,000


LEADING COMPANIES



Table 14: Nestle S.A.: key financials (CHF)

CHF million 2005 2006 2007 2008 2009

Revenues 91,115.0 98,458.0 107,552.0 109,908.0 107,618.0

Net income (loss) 8,081.0 9,197.0 10,649.0 18,039.0 10,428.0

Total assets 102,718.0 101,805.0 115,361.0 106,215.0 110,916.0



Table 15: Nestle S.A.: key financial ratios

Ratio 2005 2006 2007 2008 2009

Profit margin 8.9% 9.3% 9.9% 16.4% 9.7%

Revenue growth 7.6% 8.1% 9.2% 2.2% (2.1%)

Asset growth 17.9% (0.9%) 13.3% (7.9%) 4.4%

Liabilities growth 14.6% (8.7%) 23.8% (15.3%) 11.7%

Debt/asset ratio 52.2% 48.1% 52.5% 48.3% 51.6%

Return on assets 8.5% 9.0% 9.8% 16.3% 9.6%




LEADING COMPANIES



Figure 10: Nestle S.A.: revenues & profitability


Figure 11: Nestle S.A.: assets & liabilities


DISTRIBUTION



MARKET DISTRIBUTION

Supermarkets / hypermarkets form the leading distribution channel in the global soft drinks market,

accounting for a 47.9% share of the total market's volume.

On-trade accounts for a further 17.8% of the market.

Table 16: Global soft drinks market distribution: % share, by volume, 2009(e)

Channel % Share

Supermarkets / hypermarkets 47.9%

On-trade 17.8%

Independent Retailers 15.3%

Others 18.9%

Total 100%


Figure 12: Global soft drinks market distribution: % share, by volume, 2009(e)


MARKET FORECASTS



MARKET FORECASTS

Market value forecast

In 2014, the global soft drinks market is forecast to have a value of $511.6 billion, an increase of 16.2%

since 2009.

The compound annual growth rate of the market in the period 2009–14 is predicted to be 3%.

Table 17: Global soft drinks market value forecast: $ billion, 2009–14

Year $ billion € billion % Growth

2009 440.3 316.6 3.1%

2010 454.5 326.9 3.2%

2011 469.8 337.8 3.4%

2012 483.1 347.4 2.8%

2013 497.3 357.7 2.9%

2014 511.6 367.9 2.9%

CAGR: 2009–14 3.0%


Figure 13: Global soft drinks market value forecast: $ billion, 2009–14


MARKET FORECASTS



Market volume forecast

In 2014, the global soft drinks market is forecast to have a volume of 465.4 billion liters, an increase of

16.7% since 2009.

The compound annual growth rate of the market in the period 2009–14 is predicted to be 3.1%.

Table 18: Global soft drinks market volume forecast: billion liters, 2009–14

Year billion liters % Growth

2009 398.7 3.2%

2010 411.9 3.3%

2011 425.5 3.3%

2012 438.3 3.0%

2013 452.0 3.1%

2014 465.4 2.9%

CAGR: 2009–14 3.1%


Figure 14: Global soft drinks market volume forecast: billion liters, 2009–14


APPENDIX



APPENDIX

Methodology

Datamonitor Industry Profiles draw on extensive primary and secondary research, all aggregated,

analyzed, cross-checked and presented in a consistent and accessible style.

Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys

and supported by analysis from industry experts using highly complex modeling & forecasting tools,

Datamonitor’s in-house databases provide the foundation for all related industry profiles

Preparatory research – We also maintain extensive in-house databases of news, analyst

commentary, company profiles and macroeconomic & demographic information, which enable our

researchers to build an accurate market overview

Definitions – Market definitions are standardized to allow comparison from country to country. The

parameters of each definition are carefully reviewed at the start of the research process to ensure they

match the requirements of both the market and our clients

Extensive secondary research activities ensure we are always fully up-to-date with the latest

industry events and trends

Datamonitor aggregates and analyzes a number of secondary information sources, including:

- National/Governmental statistics

- International data (official international sources)

- National and International trade associations

- Broker and analyst reports

- Company Annual Reports

- Business information libraries and databases

Modeling & forecasting tools – Datamonitor has developed powerful tools that allow quantitative

and qualitative data to be combined with related macroeconomic and demographic drivers to create

market models and forecasts, which can then be refined according to specific competitive, regulatory

and demand-related factors

Continuous quality control ensures that our processes and profiles remain focused, accurate and

up-to-date

APPENDIX



Industry associations

International Coffee Organization

22 Berners Street, London, W1T 3DD, United Kingdom

Tel.: 44 20 7580 8591

Fax: 44 20 7580 6129

www.ico.org

International Tea Committee

Sir John Lyon House, 5 High Timber Street, London EC4V 3NH, United Kingdom

Tel.: 44 20 7248 4672

Fax: 44 20 7329 6955

www.inttea.com

International Federation of Fruit Juice Producers

23 Boulevard des Capucines, F-75002 Paris, France

Tel.: 33 1 4742 8280

Fax: 33 1 4742 8281

www.ifu-fruitjuice.com

Related Datamonitor research

Industry Profiles

Soft Drinks in the United States

Soft Drinks in Canada

Soft Drinks in Mexico

Soft Drinks in Brazil

Soft Drinks in Argentina

Soft Drinks in Chile

Soft Drinks in Colombia

Soft Drinks in Venezuela

Soft Drinks in France

Soft Drinks in Germany

Soft Drinks in the United Kingdom

APPENDIX



Soft Drinks in Belgium

Soft Drinks in Italy

Soft Drinks in the Netherlands

Soft Drinks in Spain

Soft Drinks in the Czech Republic

Soft Drinks in Denmark

Soft Drinks in Hungary

Soft Drinks in Norway

Soft Drinks in Russia

Soft Drinks in Poland

Soft Drinks in Sweden

Soft Drinks in Europe

Soft Drinks in Australia

Soft Drinks in China

Soft Drinks in India

Soft Drinks in Japan

Soft Drinks in Singapore

Soft Drinks in South Korea

Soft Drinks in Taiwan

Soft Drinks in Asia-Pacific

Soft Drinks in South Africa

Soft Drinks in Ireland

Soft Drinks in Portugal

Soft Drinks in Peru

Soft Drinks in Uruguay

Soft Drinks in Hong Kong

Soft Drinks in New Zealand

APPENDIX



Disclaimer

All Rights Reserved.

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form

by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior

permission of the publisher, Datamonitor plc.

The facts of this report are believed to be correct at the time of publication but cannot be guaranteed.

Please note that the findings, conclusions and recommendations that Datamonitor delivers will be

based on information gathered in good faith from both primary and secondary sources, whose

accuracy we are not always in a position to guarantee. As such Datamonitor can accept no liability

whatever for actions taken based on any information that may subsequently prove to be incorrect.

ABOUT DATAMONITOR



ABOUT DATAMONITOR

The Datamonitor Group is a world-leading provider of premium global business information, delivering

independent data, analysis and opinion across the Automotive, Consumer Markets, Energy & Utilities,

Financial Services, Logistics & Express, Pharmaceutical & Healthcare, Retail, Technology and

Telecoms industries.

Combining our industry knowledge and experience, we assist over 6,000 of the world’s leading

companies in making better strategic and operational decisions.

Delivered online via our user-friendly web platforms, our market intelligence products and services

ensure that you will achieve your desired commercial goals by giving you the insight you need to best

respond to your competitive environment.

Premium Reports

Datamonitor's premium reports are based on primary research with industry panels and consumers.

We gather information on market segmentation, market growth and pricing, competitors and products.

Our experts then interpret this data to produce detailed forecasts and actionable recommendations,

helping you create new business opportunities and ideas.

Summary Reports

Our series of company, industry and country profiles complements our premium products, providing

top-level information on 30,000 companies, 3,000 industries and 100 countries. While they do not

contain the highly detailed breakdowns found in premium reports, profiles give you the most important

qualitative and quantitative summary information you need - including predictions and forecasts.

Datamonitor consulting

We hope that the data and analysis in this profile will help you make informed and imaginative business

decisions. If you have further requirements, Datamonitor’s consulting team may be able to help you. For

more information about Datamonitor’s consulting capabilities, please contact us directly at

[email protected].

Copyright of Soft Drinks Industry Profile: Global is the property of Datamonitor Plc and its content may not be

copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written

permission. However, users may print, download, or email articles for individual use.

Documents

53057255