Documenti di Didattica
Documenti di Professioni
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DRINKS (WORLD)
March 2013
Scope
This global profile focuses on the industry trends in soft drinks.
Disclaimer
All values expressed in this report are retail/off-trade in US dollar terms using a
fixed exchange rate (2012).
2012 figures are based on part-year estimates.
All forecast data are expressed in constant terms; inflationary effects are
discounted. Conversely, all historical data are expressed in current terms;
inflationary effects are taken into account.
SOFT DRINKS
OFF-TRADE RTD VOLUME
534.8 billion litres
Bottled Water
192 billion litres
Carbonates
169.5 billion
litres
Fruit/
Vegetable
Juice
62 billion litres
Sports and
Bottled Sports
Water and Energy Drinks
Energy Drinks
205.1 billion15 billion litres
16.2 billion
litres
Concentrateslitres
43 billion litres
Concentrates
43.7 billion
litres
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RTD Tea
30.1 billion
litres
RTD Coffee
4.5 billion litres
PASSPORT 2
STRATEGIC EVALUATION
HIGHLIGHTS OF ACQUISITIONS
COMPETITIVE POSITIONING
MARKET ASSESSMENT
OPERATIONS
RECOMMENDATIONS
STRATEGIC EVALUATION
Georgia, US
Regional
involvement:
Global
Category
involvement:
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3.0%
PASSPORT 4
STRATEGIC EVALUATION
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WEAKNESSES
OPPORTUNITIES
Heavy reliance on
carbonates
While TCCC has
expanded its soft drinks
portfolio of late, it remains
highly dependent on
carbonates. Hence, it is
vulnerable to a downturn
in this category.
THREATS
Emerging markets
Strong competition
PepsiCo remains a
considerable foe in soft
drinks and having stolen
a march in terms of
bottler buyouts, it has
possibly a crucial
advantage in terms of
repositioning itself in a
redefined marketplace.
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Cannibalisation in low
calorie categories
In some cases, and in
particular in low calorie
carbonates, TCCCs
brands can sometimes be
found in direct
competition with each
other and at risk of
cannibalisation.
PASSPORT 6
Strategies
TCCC
The company is striving to sustain sales in developed markets with a focus on diet
carbonates. Consumption of carbonates in emerging markets continues to increase. The
Middle East and Africa is often mentioned as the next major growth area. The company has
stated a financial objective to double its revenue between 2010 and 2020. TCCC has sought
to increase its non-carbonates coverage in the wake of challenging market conditions in
some carbonates markets, and the ongoing health and wellness trend affecting soft drinks
markets globally. Its acquisitions are leaning towards still drinks.
PepsiCo
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PASSPORT 7
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STRATEGIC EVALUATION
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Diversification
The dilution of its exposure to carbonates is an
important strategy for TCCC. The company has
reduced its reliance on carbonates and has strong
brands in both bottled water and fruit/vegetable
juice. The company has further products in other
categories and must continue to look to diversify,
strengthening its portfolio in RTD tea and even
Asian speciality drinks. The recent equity
investment in the US added-value dairy brand
Core Power is an astute move.
Acquisition targets in developed markets
TCCC already has strong penetration in major soft
drinks markets, which typically offers limited
acquisition opportunities due to market
consolidation. Much of the future volume growth is
likely to come from secondary markets such as
Vietnam and Indonesia. TCCC may be better
advised to set its sights on larger acquisition
targets in untapped regions such as the Middle
East and Africa and some secondary markets.
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STRATEGIC EVALUATION
HIGHLIGHTS OF ACQUISITIONS
COMPETITIVE POSITIONING
MARKET ASSESSMENT
OPERATIONS
RECOMMENDATIONS
HIGHLIGHTS OF ACQUISITIONS
2009
US
Coconut water
2010
UK
2010
Nidan
Russia
Fruit/vegetable juice
2010
US
Bottling facilities
2011
Honest Tea
US
RTD tea
2012
UAE
Soft drinks
2013
Philippines
Soft drinks
operations
2013
US
Added-value dairy
Euromonitor International
PASSPORT 11
HIGHLIGHTS OF ACQUISITIONS
Country of origin
Main businesses
2009
2010
Americas and
Europe
2010
ONE
US
2011
Wimm-Bill-Dann
Russia
Euromonitor International
Coconut water
PASSPORT 12
HIGHLIGHTS OF ACQUISITIONS
TCCCs acquisition activities indicate that the company is looking to extend its range
of health and wellness drinks. The company is also looking to strengthen its noncarbonates ranges, in particular RTD tea and fruit/vegetable juice. Similarly,
PepsiCo has acquired in these areas including Wimm-Bill-Dann (WBD) which
helped PepsiCo stay ahead of TCCC in Russia while expanding into packaged food.
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PASSPORT 13
HIGHLIGHTS OF ACQUISITIONS
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PASSPORT 14
HIGHLIGHTS OF ACQUISITIONS
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HIGHLIGHTS OF ACQUISITIONS
Brands
GBO
Lucozade
GlaxoSmithKline Plc
Capri-Sonne
391
Ribena
GlaxoSmithKline Plc
314
Estath
Ferrero Group
241
Sunniva
Tine SA
216
Sant'Anna di
Vinadio
207
Santl
Parmalat Group
185
Farris
Carlsberg A/S
177
Hartwall
Heineken NV
127
Ramlsa
Carlsberg A/S
118
1,057
PASSPORT 16
STRATEGIC EVALUATION
HIGHLIGHTS OF ACQUISITIONS
COMPETITIVE POSITIONING
MARKET ASSESSMENT
OPERATIONS
RECOMMENDATIONS
COMPETITIVE POSITIONING
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PASSPORT 18
COMPETITIVE POSITIONING
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COMPETITIVE POSITIONING
21.2
PepsiCo Inc
9.9
Danone, Groupe
4.7
Nestl SA
3.7
2.0
1.6
1.5
1.1
0.9
0.6
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PASSPORT 20
COMPETITIVE POSITIONING
Achieving a growth rate of 23%, Asahi was the best performer among
the top 10 companies in 2012. The acquisition of the domestic
concentrate brand Calpis enhanced its position in concentrates; its
global category ranking moved from 16th in 2011 to seventh in 2012.
With no major acquisition made in 2012, Suntory, ranking fourth in
global soft drinks, managed just single-digit growth. Suntory is
undergoing a major shake-up of its food and beverage business. In
January 2013, Suntory established the Corporate Development
Department specifically for mergers and acquisitions activity, and
further announced placing Suntory Beverage & Food Middle East,
African and LatAm S.L under the direct management of its
international division, suggesting development in these regions is a
priority. Suntory has no visible presence in Latin America yet and its
exploration of buying opportunities is a strategy that could address
this.
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26.2
PepsiCo Inc
11.3
Nestl SA
2.8
2.7
2.0
Danone, Groupe
1.9
1.6
1.5
1.4
1.2
PASSPORT 21
STRATEGIC EVALUATION
HIGHLIGHTS OF ACQUISITIONS
COMPETITIVE POSITIONING
MARKET ASSESSMENT
OPERATIONS
RECOMMENDATIONS
MARKET ASSESSMENT
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PASSPORT 23
MARKET ASSESSMENT
TCCC continues to be overwhelmingly more powerful than PepsiCo in carbonates. The key issue for TCCC
now is to sustain its sales in developed markets and continue to expand in untapped markets in which the
penetration of carbonates remains low.
Carbonates
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PASSPORT 24
STRATEGIC EVALUATION
HIGHLIGHTS OF ACQUISITIONS
COMPETITIVE POSITIONING
MARKET ASSESSMENT
OPERATIONS
RECOMMENDATIONS
PASSPORT 26
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PASSPORT 27
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PASSPORT 31
PASSPORT 32
STRATEGIC EVALUATION
HIGHLIGHTS OF ACQUISITIONS
COMPETITIVE POSITIONING
MARKET ASSESSMENT
OPERATIONS
RECOMMENDATIONS
BRAND STRATEGY
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PASSPORT 34
BRAND STRATEGY
Coca-Cola slowdown
Coca-Cola continues to be the most valuable soft drinks brand globally, with no immediate challenger.
Despite the enormous backing Coca-Cola receives in terms of product development, marketing,
sponsorship and advertising, the brand saw growth slow down in 2012. The decline can be attributed to the
strong trend for wellbeing, which has strengthened the hand of non-carbonates while negatively impacting
carbonates.
Sports and energy drinks brands such as Red Bull and Gatorade and fruit/vegetable juice brands such as
Minute Maid continue to attract attention from consumers. Many consumers, particularly those in developed
markets, have reduced consumption of any forms of carbonates altogether.
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PASSPORT 35
BRAND STRATEGY
PASSPORT 36
BRAND STRATEGY
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PASSPORT 37
STRATEGIC EVALUATION
HIGHLIGHTS OF ACQUISITIONS
COMPETITIVE POSITIONING
MARKET ASSESSMENT
OPERATIONS
RECOMMENDATIONS
OPERATIONS
Operating segments
TCCCs operating structure is the basis for its internal financial reporting. As of 31 December 2011, its
operating structure included the following operating segments:
TCCC
Eurasia and
Africa
Europe
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Latin
America
North
America
Pacific
Bottling
Investments
Corporate
PASSPORT 39
OPERATIONS
In North America, as of 31 December 2011, TCCC owned 69 beverage production facilities, 10 principal
beverage concentrate and/or syrup manufacturing plants, one facility that manufactures juice concentrates
for foodservice use and two bottled water facilities. TCCC also leased one bottled water facility, one
beverage production facility and six container manufacturing facilities. The company also operated 287
principal beverage distribution warehouses, of which 104 were leased and the rest were owned.
Global production facilities also help TCCCs global operations
Additionally, as of 31 December 2011, TCCC owned and operated 20 principal beverage concentrate
manufacturing plants outside North America, of which four are included in the companys Eurasia and
Africa operating segment; three are included in the Europe operating segment; five are included in the Latin
America operating segment; and eight are included in the Pacific operating segment.
TCCC also owns or holds a majority interest in 97 principal beverage bottling and canning plants located
throughout the world.
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PASSPORT 40
OPERATIONS
PASSPORT 41
OPERATIONS
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PASSPORT 42
STRATEGIC EVALUATION
HIGHLIGHTS OF ACQUISITIONS
COMPETITIVE POSITIONING
MARKET ASSESSMENT
OPERATIONS
RECOMMENDATIONS
RECOMMENDATIONS
PASSPORT 44
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PASSPORT 45