The Cocoa-Cola Company versus PepsiCo, Inc

The Cocoa-Cola Company versus PepsiCo, Inc

The Cocoa-Cola Company versus PepsiCo, Inc

Introduction

Intense competition between the two beverage giants namely Coca-Cola and Pepsi who have been arch rivals since decades and have dominated the beverage industry having 95% market share. These giants have ruled the market since their inception but Coca-Cola is a stronger brand name and had outsold Pepsi twice. Since Coca-Cola was the pioneer drink in the bottled beverage industry, it has maintained its sales volumes, doubling over the years and retaining its market share. Now this new kind of war is dubbed as the “Cola Wars” by many of the spectators and marketing analysts.

Discussion

Moreover, history speaks volumes upon volumes about these products; Coca-Cola was originally used for medicinal purposes. Originally, Coca-Cola was derived from a French Wine Coca made by John Pemberton in Georgia. However, later in 1886, due to the legislation, Pemberton, started producing non-alcoholic version of the Wine and sold as a concoction at a Pharmacy, which was basically carbonated water said to be good for health and claimed that diseases like morphine, dyspepsia, neurasthenia, headache and impotency would be cured. Hence, the name Coca Cola was devised, as cola represented the use of carbonated water in the dark brown drink. Later on in the end of the 1800s Asa Griggs Candler acquired a stake in Pemberton's company and incorporated the company as the Coca Cola Company but failed miserably due to the fact that he had changed names of the drink. Pemberton's son Charley continued his father's legacy and sold the drink.

On the contrary, Pepsi was invented after Coca Cola's was devised. The recipe was devised by a pharmacist and industrialist by the name of Caleb Bradham who named it Pepsi Cola in 1898 and on in the ...