Which company is the new market leader in the US Soft drinks industry?

Ever since the 17^th century, the soft drinks industry has been becoming more prominent and has been growing at a fast pace. The soft drinks industry consists of sparkling drinks, juices, concentrates, bottled water, smoothies, ready to drink tea and coffee. Soft drinks are generally made on a still or carbonated water base with added flavors and sweeteners and sometimes fruit juices and caffeine.

 The G-8 countries alone generated almost $291 billion in soft drink sales in 2010 and these numbers have only gone up recently. In fact the G-8’s global soft drink industry is predicted to hit almost $310 billion in 2015. The global soft drinks industry collectively generated $550 billion revenues in 2012. The United States has 43% share in the global soft drink industry generating almost $125 billion in sales which directly affects the dnkn stock quote. 

With respect to the various soft drink companies in the industry, the current market leader by market share is Coca- Cola. It has a market share of 34% with Pepsi Co. following close behind with 26.3% market share.  Dr. Pepper holds about 11% of the market share, Nestle holds 10.2% and the rest is held by a number of other companies. 

In 2012, Coca cola had revenues worth $48 billion, while Pepsi was ahead with $66 billion and Dr. Pepper merely $6 billion. Coca cola’s stock price today was $40.89. In a three month period the lowest stock price for Coca cola has been $37.1 and the highest around $40, which shows little fluctuation and greater stability. On the other hand, Pepsi cola’s stock price today was $86.54 with a 52 week highest being $87.68 and a 52 week lowest being $77.01.  The share price of Dr. Pepper today was $57.21, with a 52 week high of $57.41 and a 52 week low of $43.18. 

In terms of recent developments, there has been intense debate about the use of sweeteners in carbonated beverages. While soft drinks maintain their stance that the type of sweetener used in soft drinks, high fructose corn syrup is not harmful to human health numerous studies have proven how obesity is directly linked to the consumption of soft drinks. This poses a significant and material threat to the soft drink industry as consumers may reduce their intake of the soft drinks and consequently lower revenues and profit margins of companies. In fact in the past few years, many people have made the healthy choice and have stopped consuming soft drinks altogether negatively impacting companies. 

Thus while the consumption of soft drinks may be reducing health conscious customers have started consuming bottled water, flavored water, ready-to-drink tea and coffee more frequently. With this regard, Coca Cola has taken the lead to develop such products. Hence investors need to be in touch with these new developments and the changing dynamics of the soft drinks industry. Visit Bidnessetc.com to remain tuned in to the recent developments both financial and non financial in the soft drinks industry.