Although there are many significant players in the beverage industry, Coca-Cola Co. and Pepsi Co. are the main players. Combined, they make up more than 70 percent of the market share in the United States across all channels. They have been the driving force in the carbonated soft drink industry that increased sales by 1.7 percent in volume. However, more and more flavored products are making their way onto store shelves. Some of these new products and opportunities are isotonics, juices, sports and energy drinks, and water.

According to financial reports, non-diet carbonated soft drinks are only expected to capture about 25 percent of the anticipated growth of four to five hundred cases per year on top of the now 12 billion cases of the U.S. soft drink industry with diet carbonated soft drink and non-carbonated making up the difference. This looks good for Pepsi because they have acquired the sports drink leader, Gatorade, and a major alternative beverage leader in the SoBe brand beverages.

A pharmacist from North Carolina named Caleb Bradham started Pepsi in 1898. He was experimenting with digestive aids and invented something his customers liked to call "Brad's Drin

„h Maintaining audience attention online with content unrestrained by traditional media parameters

Pepsi soon tried producing many alternative versions of its drink, including a sugar-free drink called Diet Pepsi. Other such substitutes soon came to follow, such as Pepsi light, and Pepsi free. In 1992 Pepsi found a formula for making Pepsi the same color as 7up and labeled it Crystal Pepsi. They created other such drinks as well: Pepsi Raging Razzberry, Pepsi Strawberry Burst, Pepsi Tropical Cola, and Pepsi Kona.

10. Pepsi.com. (2002). Retrieved from http://www.pepsi.com November 23, 2002.

2002 Third Quarter Financial Results

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