Request Advisory Soft drink is a beverage which contains carbonated water or still water, a sweetening agents and flavoring substances. The sweeteners may be sugar, high-fructose corn syrup, fruit juice or sugar substitutes i. Depending on the type of soft drinks it may contain caffeine, coloring agents, stabilizers, preservatives and other ingredients.
The Coca-Cola Company in the years to was the first to partition the entire United States into exclusive sales territories. Rivals entering the market pursued the same strategy. Had the local bottlers producing and selling each trademarked soft drink agreed together to establish these territorial divisions this would have been per se illegal, based on a long tradition from Addyston Pipe and Steel Company v.
United States through United States v. The fact that the territories were stipulated vertically by the parent syrup companies and not horizontally by the bottlers themselves only recently aroused interest at the Federal Trade Commission.
Pepper with violation of section 5 of the Federal Trade Commission Act which prohibits "unfair methods of competition. Attempting to remove discretion in this matter from the FTC and possibly at a later date the courts, the syrup companies expended considerable energies through the National Soft Drink Association and other channels introducing legislation into both the House of Representatives and the Senate.
These bills, in varying degrees, would permit exclusive territorial arrangements for trademarked soft drinks and certain other food products as long as they do not unreasonably re- strain trade.
The most recent May House bill H. Under the most recent May Senate bottlers' bill S. Congressional debate notwithstanding, an initial opinion favorable to the syrup companies was rendered in October by an administrative law judge at the FTC.
The judge held that while the licensing contracts did restrict intrabrand competition, substantial and effective interbrand competition existed and was more significant than the eliminated intra- brand competition.
He stated that the elimination of territorial exclusivity would force the smaller bottler from the industry as well as increase the use of non-returnable packages and cans which was alleged to be detrimental to the environ- ment. The legality surrounding the elimination of intrabrand competition due to the existence of vertical territorial restrictions was first explored by the Supreme Court in White Motor Co.
United States in The Court noted it did not know enough about the competitive impacts of such arrangements to decide that they ought to be per se illegal.
A suggestion that vertical territorial arrangements were acceptable, given only reasonable profits and no evidence of horizontal conspiracy, followed the Sandura Co. In the United States v. Given this regulatory climate, it is not surprising that the syrup manufacturers claimed that interbrand competition was the arena in which they wish to be judged.
While still awaiting a decision by the FTC on the appeal by the Bureau of Competition of the initial decision rendered by the administrative law judge inthe Supreme Court in Continental T. Part I of this paper discusses interbottler competition, while part II concentrates on the two broad dimensions of interbrand competition, price and non-price behaviors within and between territories.
No discussion of intrabrand competition is needed for territorial exclusivity effectively suppresses any such competition. Part III is a detailed study of a multi- plant, multifranchise bottling firm that is able to engage successfully in third degree price discrimination.The illusion of diversity in the soft drink industry extends beyond obscuring ownership, as its products are primarily water and sweeteners.
More research is needed on the links between pseudovariety and the consumption of energy-dense, nutrient-poor substances.
Soft Drinks in Canada report is published on October 20, and has 43 pages in it. This market research report provides information about Country Overview (Food & Beverages), Soft Drinks, Beverages, Food & Beverages industry. Meanwhile, Indonesia's Industry Ministry targets to see the nation's soft drinks market grow by about 2 - 3 percent (y/y) in due to many gatherings related to the local elections (occasions when people take beverages) as well as the Asian Games. Global Soft Drinks Market Industry Research Report. Report Details. Table of Content. Inquiry Before Buying. Request Sample. In this report, the global Soft Drinks market is valued at USD XX million in and is expected to reach USD XX million by the end of , growing at a CAGR of XX% between and
The story of the soft drinks industry. Bedford Row London WC1R 4EB Reg in England No.
T: +44 (0) 20 New product development for functional drinks, coupled with innovations at the economy end of the market, could help Indonesia's soft drinks market bounce back from a recent slump in growth. As the industry gathered in Jakarta for the FI Asia show - which featured a raft of firms, including AstaReal.
The market structure of the soft drink industry is a two-tiered one in which a small group of nationwide syrup producers grant exclusive territorial franchises to local bottlers, making them the sole distributors of items trademarked by the syrup producers within a specific geographic area.
• The supplier group does not depend heavily on the industry • timberdesignmag.com Power of Suppliers: A supplier group is powerful if • It is more concentrated than the industry it sells to • Industry participants face switching costs in changing suppliers • Suppliers offer products that are differentiated.
Current Situation The case explains the economics of the soft drink industry.
There activities that add value to consumer at nearly every stage of the value chain of the soft drink industry.