1. Why is the soft drink industry so profitable?
The soft drink industry is worth $60 billion in the US and its major players Coca-Cola and PepsiCo both achieved an average annual growth of 10% between 1975 and 1995. While per capita consumption of soft drinks seems to have reached its limit in the US and Canada (only 2% annual growth between 1992 and 1999), emerging countries, such as Brazil (12% annual per capita consumption growth) and Philippines (9% annual per capita consumption growth), along with the overall growth of the world population, show that the global market is far from sa…
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