Nonalcoholic Beverage Manufacturing
Competitive Landscape
Demand for nonalcoholic beverages is driven by consumer tastes and demographics. The profitability of individual companies depends on effective marketing. Large companies have economies of scale in production and distribution. Small companies can compete by producing new products, catering to local tastes, or selling at lower prices. The industry is capital-intensive: average annual revenue per worker is about $540,000.
Opportunities
Ready-to-Drink Tea - As soft drink sales continue to drop, ready-to-drink tea sales are rising. The volume of soft drink sales fell for the sixth consecutive year in...
Business Challenges
Dependence on National Manufacturers - To retain valuable relationships with national manufacturers, local bottlers and wholesalers have to meet certain financial and operating tests that restrict their ability to diversify.