Essay about Coca-cola and Soft-drink Companies

Submitted By yvonneyuan
Words: 425
Pages: 2

TO: | Professor Souza | FROM: | anny | DATE: | 1/21/2013 | RE: | Pessimistic prospect for Soft-drink Companies |

I am honored to have the opportunity to give the introduction of the performance on soft-drink companies (i.e. Coca-Cola co.) over the past few years. Most of soft-drink companies have suffered a considerable decrease in sales, simply because of increasing health concerns and switching from soda to water, coffee, and juices for their target markets.
Based on my research, soft-drink companies have taken some actions as follows: 1. Soft-drink companies made some adjustments with their product portfolio. For example, they developed some drinks like soda with zero or low calories, energy drink, water, juices and other products. 2. Soft-drink companies have been producing a small volume of soda, which let people enjoy drinks but not hurt their health. 3. Since production cost increased dramatically, soft-drink companies raised soda price in 2011 in order to guarantee their profit margin.
However, these beverage companies still have faced some threats as follows: 1. Total soft-drink market size declined significantly by 20%. 2. People have more time, money, and even accessible information to consider their health regarding to the beverages. 3. Due to the global economic recession, the highest unemployment rate, and the inflation rate, consumer have purchased less soda than before. 4. Most of their stock price declined 5% annually, even in the holiday seasons.
Consequently, the outlook of soft-drink industry seems not to be promising. According to Yahoo finance, all three main players in the soft-drink industry have a poor…