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This large increase in cash generation is a result of both companies focusing on the higher margin non-carbonated drink segments and pursuing lower bottling costs for their traditional carbonated beverages.
ANALYSIS – QUALITATIVE
1) Saturation of Carbonated Beverages
Carbonated beverage brands such as Coca-Cola and Pepsi are two of the most recognized brands in the world and have almost penetrated every available market in the world as well...
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There is very little in growth potential in this type of product, therefore overall company growth will have to come from new types of products such as non-carbonated beverages. However both companies have engaged in a strategy of pursuing the non-carbonated segment which is a rapidly growing segment and should remain so for the next few years...
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