PDA

View Full Version : Mc Donald's ends Pepsi bottle test.



Mr Zabe
02-28-2009, 07:23 AM
McDonald's Pepsi loss is Coca-Cola gain (http://www.suntimes.com/business/1452917,w-mcdonalds-mountain-dew-022709.article)

Tannerman
02-28-2009, 11:42 AM
Did anyone seriously think that Coke was going to lose that battle? It was a bold move for Pepsi, I'll say that.

popologist
02-28-2009, 02:53 PM
what's most surprising to me is that Coke dominates 70% of the fountain drink market... and Pepsi only 20%.

what % of the entire market do fountains account for in the US?

Wally1912
02-28-2009, 05:03 PM
How much of the remaining 10% does Dr Pepper Snapple have? I don't think I've ever come across their products in a fountain aside from Dr Pepper being served alongside Coke and Pepsi's brands in some restaurants.
I would love to see a fountain featuring an assortment along the lines of:
RC
Diet Rite
Dr Pepper
Diet Dr Pepper
7UP
A&W (or Hires)
Sunkist (or Crush)
Canada Dry (or Vernors)
Squirt
Hawaiian Punch (non-carbonated)
Country Time Lemonade (non-carbonated)

popologist
02-28-2009, 05:13 PM
yeah. i was wondering what the other 10% were as well...
How much of the remaining 10% does Dr Pepper Snapple have? I don't think I've ever come across their products in a fountain aside from Dr Pepper being served alongside Coke and Pepsi's brands in some restaurants.
I would love to see a fountain featuring an assortment along the lines of:
RC
Diet Rite
Dr Pepper
Diet Dr Pepper
7UP
A&W (or Hires)
Sunkist (or Crush)
Canada Dry (or Vernors)
Squirt
Hawaiian Punch (non-carbonated)
Country Time Lemonade (non-carbonated)

Ram0n C0keah0lic
02-28-2009, 05:41 PM
what's most surprising to me is that Coke dominates 70% of the fountain drink market... and Pepsi only 20%.

what % of the entire market do fountains account for in the US?

Do you mean in U.S. or worldwide?... because when I went to U.S. fast food restaurants in malls and restaurants I've seen a very tough competition between Coke and Pepsi in the fountain drink market...

While here in my town, fountain drinks are not too available here, for instance: fountain Coke products are only available in my hometown movie theaters (Cinepolis, MMCinemas, Cinemark and another local one), Burger King (refill), McDonald's, Las Alitas Restaurant, Applebee's (refill), Chili's (refill), Carl's Jr (refill), Costco (refill) and Sam's Club (refill); while fountain Pepsi products are only available in Pizza Hut (refill), Subway (refill), KFC and a local salads restaurant.

CitrusCola
02-28-2009, 05:55 PM
I'd like to see Dr Pepper Snapple Group products (add Sundrop the list) in fountain outlets as well, but I don't think they've put much effort into that portion of the market.

Mr Zabe
02-28-2009, 06:50 PM
Here in Chi Town, Coke has approximately
80% of the fountain business and Pepsi has the rest.

Could a Coke or Pepsi board mate shed some light as
to how Coke maintains fountain dominance?

sodalover786
03-01-2009, 01:15 PM
what's most surprising to me is that Coke dominates 70% of the fountain drink market... and Pepsi only 20%.

what % of the entire market do fountains account for in the US?



Yes, Coke dominates the fountain market in the US, I think Coke had 65% to pepsi's 25 % some years back. They have consolidated the dominance even further, have taken even more share from pepsi and made it 70-20. I think its very unfair on Pepsi, that they have such an insignificant share of the fountain market when they are closely matching coke in the retail market. Pepsi and coke are almost neck-on-neck when it comes to retail sales.
Answering the above question, I think the the fountain market account for 22-23 %of the entire market. The market share figures released by beverage-digest take these fountain sales into account which is why coke's share come out exaggerated . If you exclude the fountain sales from those figures, you will have pepsi products almost level with coke products.
(that is the 11.8-12.0 % share lead that coke has over pepsi according to
beverage-digest is almost entirely due to its dominance of the fountain market as coke has a 50% lead in fountain sales and .50 of 22 -23% equals 11.5 -11.8 %)

The reason for Coke's dominance is Coke maintain a very high level of quality control over their fountain products,... consistently, much more than than Pepsi do on their's .
Also Coke were quick in realizing the true potential of the fountain market, much earlier ....than Pepsi. Pepsi were restricted by bottler contracts which prevented them from selling fountain syrup directly, the bottler had the rights to sell. All these factors contributed to Coke establishing a firm foothold on the fountain market.................unfortunately for Pepsi...

popologist
03-01-2009, 03:58 PM
i also think it hurt pepsi when it bought some fast food restaurants back in the 80s/90s. suddenly, pepsi became direct competitors with McDonald's, Burger King, etc... so many of them switched to Coke (if they weren't already with Coke).

perhaps, the fact that pepsi also owns snack food companies is also hurting them in restaurants as well.