![]() ![]() With growth in the carbonated beverage business difficult to find, the new battleground in the Cola Wars seems to be Coke Zero vs. "Pepsi felt that consumers didn't understand what Pepsi Max stood for-that it didn't understand that it didn't have zero calories," Sicher said. Pepsi needs to gain ground agains Coke as Coke Zero leads Pepsi Max in terms of case volume by a ratio of 5-to-1. Pepsi tells CNBC that the goal is to spread the message that Pepsi Max fits the proverbial bill. have struggledwith increased competition and health awareness, zero-calorie products have remained appealing. Right now, both brands have a small, but growing market share. However, it's only been on American store shelves for three years. It was introduced in the UK about 17 years ago, and is actually a billion-dollar brand globally. Pepsi Max actually has a longer history-just not in the United States. Coke Zero has been in the US market for about five years. These two drinks are considered by many to be "diet sodas for guys". "Pepsi using the Cola Wars as a strategy to help build Pepsi Max is a really good way to go." There hasn't been enough of good old Cola War advertising and marketing recently. "They love the competition between Coke and Pepsi. "The 'Cola Wars' are one of the great stories not just in American business history, but consumes love the Cola Wars," he said. John Sicher, editor of industry trade newsletter Beverage Digest says, it's about time. (You can watch video of Pepsi commercial here.) Today a decades-long obsession with cut-price volume growth has been replaced by a focus on revenues and profits.In a new ad campaign, Pepsi is trying to reignite the competition between Coca Cola and Pepsi with the focus on the zero-calorie space. The second way that the cola wars benefited both companies was by turning them into “the world’s best marketers”, observes Kaumil Gajrawala of Credit Suisse, a bank. Last year carbonated-drinks sales totalled $77bn in America, and over $312bn globally. And though Coca-Cola maintained its lead in that period, with over a third of the market, PepsiCo’s share shot up from 20% to a peak of over 30% in the 1990s. They went from 12.4% of American beverage consumption in 1970 to 22.4% in 1985. First, it helped fizzy drinks win a greater “share of throat” (a term coined by Roberto Goizueta, a former boss of Coca-Cola, who died in 1997). This was a risky gambit for both cola rivals. In 1995 Pepsi outspent Coke by $112m to $82m. By 1985 those figures had shot up to $72m and $57m, respectively. In 1975 Coca-Cola spent around $25m on advertising and PepsiCo some $18m. Mr Kendall changed that, by forcing both companies into an advertising arms race. The two firms had competed for decades, but they mostly fought low-grade battles. Decades before Black Lives Matter he named African-Americans to top jobs, making PepsiCo the first big American firm to do so-staring down racists including the Ku Klux Klan, which organised a boycott.īut his masterstroke was the all-out marketing blitz against Coca-Cola, long the global market leader in non-alcoholic beverages. PepsiCo’s revenues last year of $67bn dwarfed Coca-Cola’s $37bn in sales. For almost a hundred years, Coke had been the undisputed leader in the. Two years after taking charge he acquired Frito-Lay, a leading purveyor of snacks, giving PepsiCo an advantage from diversification that persists to this day. Traces the long and ferocious rivalry between Coke and Pepsi, centered on the New Coke debacle of 1985. Mr Kendall offered a mix of strategic vision, principled leadership and marketing flair. His legacy continues to shape the industry. By the time he stepped down as boss in 1986, PepsiCo’s sales had shot up nearly 40-fold, to $7.6bn. In 1974 he injected a dose of fizzy capitalism into the Soviet Union, which allowed Pepsi to become the first Western product to be legally sold behind the iron curtain. A gifted salesman, he rose quickly through the ranks from his start on the bottling line to become the firm’s top sales and marketing executive at the tender age of 35. ![]() Credit for that goes to Donald Kendall, PepsiCo’s legendary former boss, who died on September 19th aged 99. The cola wars became a cultural phenomenon. Both Coca-Cola and Pepsi both used advertising to influence people to buy their product. As the underdog, PepsiCo had stunned its bigger rival, Coca-Cola, by signing Michael Jackson, the era’s biggest musical star, to promote its brand in a record-setting $5m deal. “We didn’t start the fire.” He had had enough of the intense marketing battle between America’s fizzy-drinks behemoths. “ROCK AND ROLLER cola wars, I can’t take it any more!” cried Billy Joel in his chart-topping song from 1989.
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