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CaseNet The Soft Drink Industry in 1996 A Case Study for External Environment Analysis Raman Muralidharan Indiana University-South Bend he average US consumer drinks more soft drinks per capita 23 eight ounce servings a day than any other beverage including milk Table 1 shows the per capita consumption of various beverages in the US for 1991-1995 In terms of 1995 retail sales soft drinks in the US are a 52 billion dollar industry Standard Poors Corp 9611 The US market growth for soft drinks however has slowed to single digits since the end of 1980s Sawinski 95550 Fifty-four percent of the worlds soft drink volume is sold outside North America and in 1995 the per capita consumption of soft drinks in continental markets outside North America ranged from a low of 202 gallons in Africa to a high of 1386 gallons in South America INDUSTRY PRODUCTS AND VALUE CHAIN The industry once synonymous with the Cola has now grown into one with a wide range of products Additional flavors such as orange cherry lime lemon pepper and ginger ales have appeared in the market and caffeine-free and diet versions of almost all of the industrys products have been introduced In 1996 Cola brands occupied the top two marketshare positions in the US while non-cola brands such as Mountain Dew Sprite and 7UP were also among the top ten best-selling soft drinks Also in 1996 sales volume for the top two Colas Coca-Cola Classic and Pepsi-Cola grew 32 and 3 respectively while sales volume for Mountain Dew and Sprite grew 57 and 176 respectively Table 2 shows the list of 10 best selling soft drinks in the US market Table 1 Per Capital Beverage Consumption in the US 1991-1995 Gallons Per Person Beverage19911992199319941995 Soft drinks471480488496512 Coffee266266284295299 Milk255252251250248 Beer232229228227224 Bottled water889095103110 Tea7170696966 Juices6465656564 Powdered drinks5653525252 Wine1919171718 Distilled spirits1414131312 Source Beverage Industry 397 p 52 Table 2 Top 10 Soft Drinks in the US Market 1996 Gallons
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