a. Why is the soft drink industry so profitable during the years in this case? b

Question

a. Why is the soft drink industry so profitable during the years in this case?
b. Update the profitability....what has happened to Coke and Pepsi in the last five years?

c. Coke and Pepsi have been the dominant players in this market. Today, what market share does each one have?
d. Is this industry an oligopoly? Provide evidence to back your answer.
e.How has recent concern about high-fructose corn syrup affected the industry? WIll it affect the profits of Coke and Pepsi?
f. What is the role of the international markets in the Cola Wars?
g. What Kentucky companies make flavorings, colorings, or additives used in producing carbonated beverages?

Explanation / Answer

a)The cost to produce soft drinks is extremely low and they make a profit at any price. I've paid as low as $2.00 for a 12 pack of Pepsi or Coke and as high as $4.75 a 16 ounce bottle of Coke at Yankee Stadium. They make money either way, what a business. And they are very good for you, NOT! b) coco cola 60.9% market share

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