Fizzy drinks are adding to the rapid growth of obesity in western society. The drinks are seen as a treat to a lot of people, but it becomes an addiction for some. It seems to be all they consume. That’s right, ALL that they drink. Not water, not squash. Fizzy drinks. This of course has massive health repercussions, but with the money that both Coca-Cola and Pepsi spend on marketing and advertising, there is no escaping the two sugar coated devils in disguise.
With the status that both Coca Cola and Pepsi hold, you would expect the companies to have a substantial following on social media, and this is what they definitely do have! Coca-Cola comes in first place against Pepsi when it comes to Facebook likes, totalling 105 million, up against Pepsi’s 37 million. On twitter the margin is slightly smaller; Coca-Cola has 3.38 million followers, to Pepsi’s 3.09 million.
Obviously, as both companies are the two front-runners in the soft drinks industry, they are going to be able to spend a lot of money on advertising. In 2016 Coca-Cola spent 4 billion dollars on advertising with Pepsi spending 2.5 billion dollars. One of the biggest advertisements that both tend to go for is a commercial at half time for the super bowl. Pepsi are currently in the midst of a ten-year contract with the half time show.
Despite all of the money that Coca-Cola put into their advertising last year, they didn’t manage to beat Pepsi. (Maybe it was that halftime super bowl commercial). Coca-Cola sold 41.86 billion dollars worth of products last year, where as Pepsi sold 62.8 billion dollars. However, due to sales in fizzy drinks declining for the 12th consecutive year for Pepsi, the company made almost half of their sales from the food products that they sell. With products such as Doritos, Quaker Goods, and Lays being popular products around the world, it was clear that they would most likely win this section due to their variation.
The final part that we will take into account is the value of the companies. Coca-Cola was founded in 1892 and in 2017 is valued at 194 billion dollars. Pepsi was founded in 1898 and it is valued at 161 billion dollars. A 33 billion dollar gap is what stands between the pair.
After taking into account all of the factors that have been discussed, it ultimately comes down to the value of the company. With this being said, Coca-Cola clearly wins the cola war. However, with sales in fizzy drinks declining year on year, the company should adopt what Pepsi is doing and branch out into the food industry if they want to stay at the top!