Cadbury Competition
Now Viewing Cadbury's competition in: Beverage Manufacture and Bottling
Recent Developments
Carbonated Beverage Sales Fall - Unit sales of carbonated soft drinks fell 6 percent in the food channel (grocery stores, convenience stores) in summer 2008 as shoppers turned from soda to energy drinks and flavored waters. Long the largest dollar sales category in supermarkets, soft drinks lost that position to dairy as the price of milk rose 14 percent. Looking to jump on the health drink bandwagon, carbonated beverage giants Coca-Cola and PepsiCo have diversified to offer healthy drinks. Coca-Cola offers G2, which it claims has half the calories of Gatorade, and PepsiCo introduced Full Throttle Hydration, a non-carbonated energy drink.
Coke Introduces Ad Campaign - Hoping to answer health critics, Coca-Cola is introducing an ad campaign stressing that Coke has no added preservatives or artificial flavors. Moving away from its youth and fun image, the campaign is responding to a global trend of health foods and drinks by noting that Coke's inventor selected only the best spices from around the world and added no artificial flavors to the drink. The company has closely guarded Coke's formula for over 120 years, but felt it necessary to respond to the increasing health movement.
Coca-Cola Introducing Green Trucks - Coca-Cola's introduction of over 140 hybrid trucks in North America will lower fuel consumption and emissions more than 30 percent. The trucks will be introduced in south Florida at a cost of $85,000 per truck. The hybrid trucks will be used in metropolitan markets and will rely on electric power for speeds of up to 30 miles an hour. PepsiCo is also pursuing environmentally friendly measures and will introduce a truck design that will increase fuel efficiency.
Competitive Landscape
Demand for non-alcoholic beverages is driven by consumer tastes and demographics. The profitability of individual companies depends on effective marketing. Large manufacturers have economies of scale in production and distribution, with average annual revenue per production worker close to $1 million. Small companies can compete by producing new products, catering to local tastes, or selling at lower prices.
Full Industry Overview For Beverage Manufacture and Bottling
Beverage Manufacture and Bottling Industry Forecast
from Hoover's/D&B subsidiary First Research
The output of US soft drinks and ice manufacturing is forecast to grow at an annual compounded rate of 4.2 percent between 2007 and 2012.
Soft Drink and Ice Manufacturing Growth Even
First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.

First Research Opportunity Rating
The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.

- Demand: Limited by demographics
- Need efficient use of labor, equipment
- Risk: Higher prices cut consumption
Industries Where Cadbury Competes
- Food
- Candy & Confections (primary)
- Canned & Frozen Foods
- Canned & Frozen Fruits & Vegetables
- Beverages
- Nonalcoholic Beverages





