Devonshire & Douglas Capital Partners Comments on Diet Coke Outselling Pepsi

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) March 28, 2011 -- Diet Coke has outsold Pepsi as the second most popular carbonated drink of 2010. The original Coke and Diet Coke now head the charts. Coke alone holds 17% of the market share with its less sugary counterpart holding its own at 9.9%.

Pepsi, who has held silver position in the charts for decades, has slipped into third place with a 9.5% share of the market - is a sizeable drop of 4.8% from last year. Coca-Cola has managed to increase its share of the market from 41.9% to 42%. It might not sound like much of an achievement but when you consider the beverage market has shrunk for the sixth year running, this year by 0.5%, any increase in market share is a feat.

Mountain Dew, Dr Pepper and Sprite come in 4th, 5th and 6th on the list, with Diet Pepsi at 7th. With Coca-Cola also owning Sprite, they have cornered a fair share of the charts.

Coveting the two top spots is a historic occasion for Coca-Cola. Pepsi clearly has problems in maintaining its share of the market. So, what has shifted the market?

Pepsi ads are renowned for their big budgets featuring mega stars such as, Beyonce, Brieny Spears and Jennifer Lopez as well as the soccer skills of Cesc Fabregas and David Beckham. Lately however, they have changed their advertising strategy.

Notably, Pepsi has pumped millions of dollars into a charitable donation scheme, in the hope of improving its image, and has come under some criticism for trying alternative advertising schemes. Have you heard of its 20 million dollar investment in ‘refreshing ideas that change the world’? Sadly, philanthropy and sales figures aren’t always a match made in heaven. Experts are calling for a return to campaigns that concentrate on celebrity endorsement and complete refreshment, though Pepsi is confident that their gamble will pay off in the long run.

Pepsi, however, has its sticky fingers in a lot of pies, whereas Coke has focused its attention on carbonated drinks. Pepsi is the owner of Frito-Lay. That’s Walker’s crisps in England and they definitely dominate the market in old Blighty. When you consider that Pepsi also accrues monstrous revenue from Tropicana and Gatorade (more than it earns from fizzy drinks, in fact!), Pepsi may be ahead of the game. It has been looking into some interesting and futuristic eco-options, such as a bottle made solely from plants.

Despite its innovative outlook, Pepsi is worth $99bn, which might sound like a lot but, comparatively, Coca-Cola is worth a whopping $141bn. It seems Pepsi’s alternative advertising hasn’t quite paid off!

CARBONATED DRINKS     cocacola     finance     investment     Pepsi     revenue     soda market