photo © 2005 Dave Morris | more info (via: Wylio)
Coca-Cola has introduced a new bottle partially derived from plants. It is ironic since the soda giants who are accused of using so much sugar are now utilizing sugar to make the bottle.
Pepsi-Cola and Coca-Cola along with other producers of soda are under fire for their products leading to obesity. The driver in the claim is the sugar content in the beverages. Parents are attempting to restrict intake of these products. In fact, schools are now banning soda and other products filled with sugar and calories from vending machines and cafeterias.
How the two leading soda companies prepared for this day
1. They have moved into bottled water and juices to diversify the brand line up.
2. Expanded to new geography like Africa. In many areas of Africa the water is not safe to drink. Sodas are made from filtered water. The product is transferred from a “nice to have” sugar drink in the US to a key source of liquids to keep the body hydrated in Africa.
Bottom Line: They are very dependent on drinks and “protecting the fort.”
1. Years ago, they changed their view of themselves. They are a snack and beverage company. That mindset led to the acquisition of Frito Lay for snacks that can be consumed with Pepsi Cola or other beverages.
2. They moved much more heavily into non-carbonated drinks with the acquisition of Gatorade, the launching of a variety of teas and bottled waters.
Bottom Line: They did not decide to “protect the fort.” Rather, they built a new fort.
If you do not re-imagine your business and consider possible threats, then someone else will do so for you.
That’s my thinking. How about you? Please comment below.
1. Do you favor Pepsi’s approach or that of Coke?
2. How have you re-imagined your business?
3. When is the last time you performed a SWOT Analysis to consider your Weaknesses and Threats?