The Coca-Cola Company has 21 different billion-dollar brands or brands that generate more than $1 billion or more in revenue each year. The company also sells its products in nearly every country in the world, with Cuba and North Korea the only two countries where it is not sold officially. What’s more, the Coca-Cola brand is worth $87.6 billion, making it one of the most valuable among all companies. Though these figures allow Coca-Cola to enjoy market dominance in many countries, the company is nevertheless subject to intense competition.
PepsiCo
No article on Coca-Cola competitors would be complete without mentioning PepsiCo.
Founded in 1898, the company has 23 brands with over $1 billion in sales – two more than the 21 enjoyed by Coca-Cola.
Based on net revenue, profit, and market capitalization, PepsiCo is the second-largest food and beverage business globally behind Nestlé. Indeed, PepsiCo’s diversified portfolio enables it to earn more revenue in North America than Coca-Cola despite not selling as many beverages.
Coca-Cola and Pepsi compete in several categories, including soda beverages, health and energy drinks, bottled water, and juices. The rivalry between these two companies has been labeled the Cola Wars, characterized by mutually targeted marketing campaigns and several public and protracted legal battles.
Red Bull
Red Bull is an energy drink manufactured by Red Bull GmbH, an Austrian company founded in 1987 by Dietrich Mateschitz and Chaleo Yoovidhya.
Despite a somewhat limited product portfolio, Red Bull has a significant following in North America, Europe, Australia, and parts of Asia.
This following is the result of targeted marketing campaigns aimed at young men where the drink is associated with extreme sports such as mountain biking, parkour, Formula 1 racing, NASCAR racing, freestyle motocross, and air racing.
Keurig Dr Pepper is an American conglomerate selling beverages such as coffee, hot cocoa, tea, water, fruit juice, and mixers.
While the company does not enjoy the global reach of Coca-Cola, it does have a diverse product range allowing it to cater to a large audience in the North American market. Some of the most popular products under the Keurig Dr Pepper umbrella include RC Cola, Schweppes, 7 Up, Snapple, and of course Dr Pepper itself.
Nestlé
Nestlé is a Swiss multinational food and drink conglomerate headquartered in Switzerland.
Though the company does not compete with Coca-Cola in the soft drink market, Nestlé owns several popular bottled water brands, including Vittel, Perrier, S. Pellegrino, and Acqua Panna. It also owns Nespresso pre-packaged coffee and Nescafé instant coffee and has partnered with Starbucks to offer Starbucks Coffee at Home.
Furthermore, the Swiss giant owns a range of tea and other beverage brands including Nestea, Milo, Sweet Leaf Tea, and Peace Iced Tea.
Key takeaways:
The Coca-Cola Company is one of the most recognizable and valuable brands in the world, operating in all but two of the world’s countries. PepsiCo is arguably the company’s largest competitor because of its comparable global reach and a more diversified product portfolio.
In the energy drink market, Red Bull enjoys a large following with its clever and targeted marketing campaigns. Intense competition in North American resulted in Coca-Cola announcing plans to stop selling its energy drinks there.
Nestle is also a Coca-Cola competitor. While it does not sell soft drinks, Nestlé is a vast and successful company with a sizeable collection of successful beverage brands.
Coca-Cola follows a business strategy (implemented since 2006) where through its operating arm – the Bottling Investment Group – it invests initially in bottling partners operations. As they take off, Coca-Cola divests its equity stakes, and it establishes a franchisingmodel, as long-term growth and distributionstrategy.
Coca-Cola’s top investors include Warren Buffet’s company, Berkshire Hathaway, with 9.23% of shares, and other mutual funds like The Vanguard Group, holding 7.9% of shares, and BlackRock owning over 6.45% of shares of the company. Other individual investors like Herbert A. Allen, director of The Coca-Cola Company since 1982, and Barry Diller, Chairman of the Coca-Cola board since 2002. And former CEO Muhtar Kent.
Coca-Cola’s Purpose is to “refresh the world. make a difference.” Its vision and mission are to “craft the brands and choice of drinks that people love, to refresh them in body & spirit. And done in ways that create a more sustainable business and better-shared future that makes a difference in people’s lives, communities, and our planet.”
Coca-Cola is the market leader of the soft drink industry. It is also the most widely recognized brand, with a Business Insider study revealing that a staggering 94% of the world population recognizes the red and white logo. However, Coca-Cola faces significant challenges with increasingly health-conscious consumers and less access to water resources.
The Coca-Cola Company is an American multinational beverage corporation founded in 1892 by pharmacist Asa Griggs Candler. Many consumers associate the company with its signature soda in a red can or bottle. In truth, however, The Coca-Cola Company owns a plethora of soft drink, juice, tea, coffee, and other beverage brands.
The Coca-Cola Company has 21 different billion-dollar brands or brands that generate more than $1 billion or more in revenue each year. The company also sells its products in nearly every country in the world, with Cuba and North Korea the only two countries where it is not sold officially. What’s more, the Coca-Cola brand is worth $87.6 billion, making it one of the most valuable among all companies. Though these figures allow Coca-Cola to enjoy market dominance in many countries, the company is nevertheless subject to intense competition.
PepsiCo was founded in 1902 by American pharmacist and businessman Caleb Bradham as the Pepsi-Cola Company. Bradham, who hoped to emulate the success of Coca-Cola, marketed the beverage from his pharmacy and registered a patent for its recipe the following year. Today, Pepsi is a global company with a portfolio of 23 billion-dollar brands, or brands earning more than $1 billion in annual revenue. Sixteen of these brands are beverage-related, while the remaining seven are associated with snacks and other food products.
In 1965, PepsiCo acquired Frito-Lay in what the chairmen of both companies called a “marriage made in heaven”. The resultant company transformed PepsiCo from a soft drink organization and set it on a path to becoming one of the world’s leading food and beverage companies. Today, PepsiCo claims to operate in more than 200 countries and territories around the world with seven distinct divisions and many successful brands.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
