SoftDrinkIndustryMarketing_11

7/28/2019 SoftDrinkIndustryMarketing_11

1/104

Breaking Down the Chain:A Guide to thesot drink industry


2/104

aCknowleDgments

t p wa vlp pv a al ag w

w, lg p vlv pcg,

bg, a mag a plg w a

p c mp a gaw bvag

pacla.

t p wa ppa b sa svc, ic., cllaba w

sppl Ca Maagm C sCMC a rg uv nwa

a nw Bwc. t a w a k Ca

ag pp all pa ppag p, clg

la vw a g c cm, wg, aa aal,

g, a al vw. spcal a al g sa Vcaa, w

pv cpg vc.

C , Ca spc, km A Wllam, a Ala Mjb

Pblc hal Law & Plc ppa p pblca. PhLP wl

l a rba ma yal r C Plc a

ob p vw.

q cmm gag p, pla cac

pvg p:

Jerome D. Williams, PhD

Pal Ca B a rac dc t C uba

epp & ecmc dvlpm Cueed, rg B

scl nwa a nw Bwc, Maagm a Glbal B

dpam

Wag Pa rm

nwa, nJ

P: a:

[email protected].

www.b.g./Cueed

Paul Goldsworthy

s i Pjc Maag

dpam sppl Ca Maagm & Mag scc

rg B scl

P:

[email protected].

Design: Karen Parry | Black Graphics

The National Policy & Legal Analysis Network to Prevent Childhood Obesity (NPLAN) isa project o Public Health Law & Policy (PHLP). PHLP is a nonprot organization thatprovides legal inormation on matters relating to public health. The legal inormation inthis document does not constitute legal advice or legal representation. For legal advice,readers should consult a lawyer in their state.

Support or this document was provided by a grant rom theRobert Wood Johnson Foundation.

2011 Public Health Law & Policy
mailto:[email protected]://www.business.rutgers.edu/CUEEDmailto:[email protected]:[email protected]://www.business.rutgers.edu/CUEEDmailto:[email protected]


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exeCutive summary 5

m ld

sot Drink inDustry overview 7

e

Pdc s d m m Bd

m m

o 0

Dd D

overview o the three major Players 12

t Cc-C Cp

PpC, ic.

D Ppp spp gp

suPPly Chain overview 15

op md

sp Pdc

B

Db C 0

marketing overview 21

00 d td C sd

Cd d d B ad i

m s

PoliCy anD legislative aCtions in resPonse to the ssB tax 73

C e rd ssB t

Pbc spp ssB t

sf D id i d e rp

ssB t

ConClusion 81

Table o

ConTenTs

www.pla.g | www.plp.g Bag dw Ca: A G s d i


4/104

aPPenDix 81

appd : Cc-C n ac CBBB Pd

appd : PpC CBBB Pd 6

appd : Pdc d Bd l sf D id

ld d tp t P-lb Bd 0

appd 4: icdc Pc sf D b

P tp, b a

enDnotes 93

4 Bag dw Ca: A G s d i www.pla.g | www.plp.g


5/104

t p wa vlp gv pblc al avca a ww

a val pp v a va

p ppl ca, m pc a b mag

a al. t p cv ma pc l :

caba , bvag, bl wa, call cal

bvag clg g a a a a c,

a p , ac c pwl ba a C, Pp, Gaa,

a sappl. W c mc c pc a ca

calc w w a bvag a

pc a pacla cc pblc al cmm.

t acall ma p w maj maacg

m a, a g, bg ma. t w

m all c cag: p d cc

maacg a f dmaacg. t ppl ca lagl

p p pc, a v m wam

pa. t maj bl llw a mla pc

l ccl, mvg m p pc, bl, b ,

mca, al cm. t lca p maac

a bl a cll l b lca agc aw

maal a maj ppla c u sa a/ aa

a abvavag mpa, w ma

b g. oc a bl a a b,

a va b cal a lvag g al pc

cm.

te ry a a wole ace callege a a rel o e lmpg ecoomy

a cag cm cmp pa ca al

cc. Mag a mpa cmp ca,

ga ma a bl cm lal. i a g

a mb cag v la v a c

avg c a cl, c w p ma, a

pa mag mag cm w a lg m

all alav.

Aa gwg all pla a AcaAmca

a hpac ma, wc av b a cm a

gw ma. Wl aap cag cmp

exeCuTive

summary

t s dsppl Ca

C

btt

sp Pdc

Dtt

mct



6/104

pa a w m ma, ac a vgag mpac

mag pacc a pcg acc av cm cmp

pa. rac w a mag a pc pla a gca

l g m a cagg bav amg cl, a a

g cl a cmcall avaag cm a m

vlabl a bvag avg. i a, ac a

a w cm cagg cmp gaw

bvag ssB, a pc ca m cv a ca

v.

t al ml a gwg plc ba

u sa gag aa gaw bvag. sv

w m lg ab a ssB a; a pll nw y C ca

m pp pc w wa alla av.

Mawl, a p gl pp

ssB a. iall, pg w

lc cm bav b cg mallz pacagg,

cagg acv ll, a lg alav, calc

w. eall, lbb a acv gp av ccll

ga pp a ma pp ssB a.

So Drink Terms

There are many overlapping terms used to describe so drinks. In this report, we tried to remain precise and

consistent with our terminology. In gures and tables, we occasionally deviate rom these terms due to theterminology used by the original data sources. Here are some o the most common terms:

So drink: any type o nonalcoholic beverage

produced by a so drink manuacturer; includes

bottled water, but not tap water

Sugar-sweetened beverage (SSB): term used by public

health advocates to describe a so drink containing

caloric sweetener (e.g., sugar, high-ructose corn syrup)

Nondiet: reers to beverages that contain calories,

usually rom an added sweetener

Diet: reers to beverages with zero calories and

usually sweetened with noncaloric sweeteners

Carbonated sof drink (CSD): type o sof drink that is

carbonated; includes both nondiet and diet sof drinks

Fruit beverage: type o so drink that either contains

ruit juice or is ruit-lavored

Juice drink: so drink that contains juice and other

ingredients

Fruit-lavored drink: so drink that is lavored to taste

like ruit but does not contain juice

Bottled: reers to beverages that are packaged inbottles or cans

Fountain: reers to beverages that are produced on

demand at a dispenser

6 Bag dw Ca: A G s d i: sc nam www.pla.g | www.plp.g


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t u.s. cmp w c b,

b claca aa, maacg l n

Amca i Claca sm: . t

lavg sp a Cca Maacg i nAiCs: ,

a c s d Maacg i nAiCs: .

Flavoring Syrup and Concentrate Manuacturing IndustryA , w cmpa u.s. a

maac lavg p cca, pw cca, a

la pc a a maacg .1

t pc a l pmal pc a gc

wlal.

So Drink Manuacturing IndustryA , w , cmpa u.s.

a bl g c a wa, lq bvag ba/p, a

w, a pacag a b bvag al.2

ecl m gpg a alclc bvag pc a

cmpa a l pc bvag g b bvag.

Market Leaders

Flavoring Syrup and Concentrate Manuacturing Industryt u.s. lavg p a cca maacg ma g

omae by wo ma player, wo mae p 73% o e oal u.s. marke

a : CcaCla Cmpa % a PpC, ic. %.3 t

mag % ma cmp a va mall cmpa.

So Drink Manuacturing Industryt s d Maacg ma u sa ma b

pla, w acc % al ma a :

Coca-Cola Compay (286%), PepCo, ic. (268%), a e dr Pepper sapple

Gp %.4 t mag % ma cl ma mall

maacg cmpa g . Amg cmpa:

J C Cpa % ma a t tba cmpa

wl lag maac alba pvalabl

: m ld sp d Ccmc id

DATA SOURCE: WWW.IBISWORLD.CO

PepsiCo, Inc. 33%

Other 27%

The Coca-ColaCompany 40%

soT Drink inDusTry

overview



8/104

a lag ma wl. Cm

cl sawa, J sab, a WalMa l , w

b agm pc b ma.5

J naal Bvag Cpa % t laba cmpa

a lg cmpa a c lg a vlpg g

gal ba, pcall w caba Csd

gm. i maag ba cl ag Bvag, Lac

Wa, ev Bvag, a saa Bvag.6

Earnings

Flavoring Syrup and Concentrate Manuacturing Industrylavg p a cca maacg a $ bll

u sa ba v. i wa ca ga a p

$ bll . t aal gw a cl b %

m , b pc ca % m .7

So Drink Manuacturing Industrys maacg a $ bll u sa

ba v. i wa ca ga a p $ bll

. t aal gw wa % m , a

pc maa gw a bw a .8

Product Segments and Major Market Brands

Pc pc a bal a b

ca b v ma gm ba v:9

Carbonated So Drinks (CSDs)J % vJ icl wllw ba a lw l a pva

labl ba l pma a c caJ tp ba: C CcaCla, Pp PpC, Ma dw PpC,

a d Ppp d Ppp sappl GpJ Acc % al vlm lq pc

Amca g

Fruit BeveragesJ % vJ icl % jc, jc wc ca l a %

jc, a lav w jcJ tp ba: tpcaa PpC a M Ma CcaCla

: m ld sf Dmc id

DATA SOURCE: WWW.IBISWORLD.COM

Dr Pepper Snapple

Group, Inc. 8.6%

PepsiCo, Inc. 26.8%

The Coca-ColaCompany 28.6%

Other 36%

Bag dw Ca: A G s d i www.pla.g | www.plp.g


9/104

Bottled WatersJ % vJ icl bl pg a l wa alg w lav wa a

wa ac w vam a malJ tp ba ac wa: Glaca Vamwa CcaCla a

Ppl PpC

Functional BeveragesJ % vJ icl g , laa , a a rtd a

a cJ tp ba g : r Bll r Bll a M eg

ha naalJ tp ba rtd: Aza hll Bwg, Lp PpC, sappl

d Ppp sappl Gp, a na CcaCla

Sports DrinksJ % vJ icl b lq a pw p mlaJ tp ba: Gaa PpC

OtherJ % vJ icl c maacg, aba , a ba

Major Markets

t al pc pc a b ma

gm. spma a gal mca c a WalMa

a tag p lag cal lma cm lz

pca , accg % ma. t mag v

gm cl ma a:10

Food Service and Drinking PlacesJ % maJ icl a l, a l, llvc aa, a

ba

Convenience Stores and Gas StationsJ % maJ icl aal cvc a aac ga

a

Vending Machine OperationsJ % maJ icl vg mac apa l aa

cvc



10/104

OtherJ % maJ icl mall l c a g , cmm c, a

pva clb

ExportsJ % maJ icl p Caaa, Japa, a Mc

Future Outlook

Flavoring Syrup and Concentrate Manuacturing IndustryWl ppc lavg p a cca

u sa a cll cc maacg

, pjc a mwa m avabl a

maacg m a p ppcv. t a a

w gl cgzabl cmpa ma : CcaCla a

PpC. t pw allw lavg p a cca pc

pa ca p c a a g mag.11

i , v wa pc gw % $ bll. ov

val a, v pc gw % aall

$ bll . t m b lw gw ca b ab

ca ma Csd a cm cag al

. t gav cm a mp b a gwg ma

cal bvag, p , a jc w l a %

jc.12

So Drink Manuacturing Industryca a ma g vlm gall a

v lla. t l maacg

u sa a mm, wg g a a l

cag cm bav. ta a, accg a Gp, a

aal ac m, vlm pc

pc ca % p a bll gall .13 m a

v p vw, pc a $ bll

w a avag aalz gw a %.14

Pabl pc ca m appmal %

ab % . Wl acpa a Csd ma wll

a cm bcm m al cc, cc wll ca

a cag bav a la m cm cal bvag

a bl wa, lg ca ca pabl.15

Cmp m a vlm ppcv pc ca a a l

a acpa ca cm pg a c ,

abvavag pa al ag gp, apac

ll a ma cvc pc, a g ma

cal bvag.16



11/104

Wl pc pc m gw v b

m vav pc a cagg mgapc ,

acal gw a pc lag b GdP gw.17 Gw

pc b lw pc cm, g ma

pa a pc cag a cm bcm m al

cc wcg m ssB cal bvag, a

cmp amg la pc ma a

c mag.

Demand Determinates

Flavoring Syrup and Concentrate Manuacturing IndustryA pvl m, ma p a cca avl

p ma . t ac a bl

a lgall a maac a m pca all p ca

m wam ma m p/cca pc. A

a l g cla, ma ma lavg

p a cca maacg u sa a

am a ma ma cb blw

maacg .

So Drink Manuacturing IndustryA mb ac m ma . t ma

pc, a ma lavl pclac. t ma

a a pc ca, ma ca a ga

g, lav pc cag. dma al lavl

cmlac, mag a a cm cm ca, ma

ca a ga g, lav cm cag,

a vc va.

Cm ll a a al ac ma . t

c mpa aml mal a ca cvc

a aawa pc ma ca ma , pcall

rtd pc, a a pacag m gabag ll. Alg

am l, a ppl bcm b, l pv

g a jva, b pg gw cal bvag

cag. Wl p a pp, pc v

ac a a gavl mpacg ma a

m.18

hal a a pc w ma cm a, a a l, a

vg ma b c. s vlp b lwcal,

lwga, a pvav a l w cm al

cc, a ma pc cag. A am

m, pblc ba ab , a pccall ab ssB, a

c ma Csd ma Csd.19



12/104

t c bl l maj pla u.s.

maacg a lavg p a cca

maacg . empa plac g

paal c maj pla CcaCla, PpC, a d

Ppp sappl Gp av plac, a lg a gw

pp a c acq.

The Coca-Cola Company

CcaCla a lag maac, b, a ma

cca a p.20 i w lc m a ba

ac all cag . t cmpa aqa

Alaa, Gga.

ul , CcaCla l p a cca a mb

cac p bl a wl pc, bl, a b

al pc. i ba , CcaCla bg mag

CcaCla ep, ma cac bl, gvg

CcaCla Cmpa cl v % n Amca vlm.21

t n Amca b gm c cmpa pa

u sa, Caaa, P rc, Vg ila, a

Cama ila. t gm pa b : palg

bvag, ll bvag, a mgg ba. t n Amca

b gm w a pa ll bvag pc

acl, pcpal bvag cca a/ p maacg

pla, a bl wa acl; la bl wa acl;

a w a acl a maac jc cca.22

PepsiCo, Inc.

PpC lag a bvag cmpa wl. i

pc cl a va al, w, a gaba ac a wll

a Csd a Csd. t cmpa pbl maacg,

mag, a al g. i a ba pl a

aqa nw y.23

overview o The

Three major Players



13/104

PpC v b : PpC Amca PA,

PpC Amca Bvag PAB, a PpC iaal Pi. t

b a v pabl gm:

La n Amca LnA; Qa n Amca QnA;

La Amca a ac b LA; PAB; ep; a Aa,

Ml ea, a Aca AMeA.24

LnA pbl mag cmpa ba ac. QnA

pbl maacg, mag, a b

cal, c, paa, a ba pc. LA pbl

mag a b ba ac La Amca. PAB

pbl llg bvag cca, a p, a

g va Pp ba am. PAB al maac

cac maac ma a ll rtd bvag a wa.

i n a s Amca, PAB w la appmal pla

a pc pcg acl, a appmal wa,

b c, a fc. i a, cmpa a a wp

appmal blg pla. t cmpa cac

maac al w la appmal pla a pc

pcg acl, a appmal wa a b

c. i Mac , PpC cmpl acq w lag

bl, Pp Blg Gp a PpAmca.

Dr Pepper Snapple Group

t d Ppp sappl Gp a lag ga ba w, bl,

a b u sa, Caaa, a Mc.25

t cmpa a ba a aqa Pla, ta.

te compay ve o ree be egme: beverage cocerae,

bole beverage, a La Amerca beverage.26 te beverage cocerae

gm maac a ll bvag cca u sa

a Caaa. t maj maacg a d Ppp

sappl pla s. L, M. t cmpa a cmba

pa bl a ppa maacg m pc

al pc. nal al cmpa aal u.s. vlm

b b cmpaw blg a b w. t

ma v g pa/lc bl a b,

clg b CcaCla a PpC blg m, a

wll a p bl, b, a b.27 i , % d

Ppp sappl al vlm w b g m Cca

Cla a PpC blg pa blg pa w cl

acq b CcaCla Cmpa a PpC ic., pcvl. Pp

Blg Gp, ic. PBG a CcaCla ep, ic. CCe w w

lag cm d Ppp sappl Bvag Cca gm,

a c % a %, pcvl, al g .



14/104

t Bl Bvag gm maac a b bl

a pc, clg d Ppp sappl ba,

paw ba, a ca pvalabl , u

sa a Caaa.28

all, La Amca Bvag gm pmal maac

bvag Mc a b g La Amca. t maj

ba ca gm a Pal, sq, Clama, a

Agal.29

A dcmb , cmpa pa maacg acl

ac u sa a Mc. t gp b w

c appmal b c u sa a

appmal b c Mc. t cmpa maag

apa pc g a cmba a gpw l

m a , lv c a pa lgc pv.30



15/104

t ppl ca lagl p p

pc, a p pc v m wam

pa. t maj rtd bvag, c a Csd a p

, llw a mla pc l ccl, mvg m p pc

bl b mca al cm. t lca

p maac cll l lca agc aw

maal a maj ppla c u sa a/ aa

w g ma bvag. smlal, blg pa

a lca cl pm b p maacg acl

a ppla c. oc bl a a b, al

pc g cm g a va b cal.

Operating Model

spcc al ab pag ml b

a c b ppa a, , a al avalabl.

t c la a gal vvw ba ca ac a

la vw pag ml w m

: bl Csd a a bvag.

CSDst pc mag bl Csd a w p maac

bl aw maal c a lavg, cmcal, a pg

bvag p w ba cp. Wl cp

ac Csd , bac aw maal cl:31

Cbd : avag, % a

s (, -c c p [hCs], cc

): avag, % a

o d, cd:J Ac m cmml cc ac ap bacg a a

ac qcg pc b mlag alva lw32

J Av ac a, ml, ama, a appaacJ eml m cmml gm a pc ac appaacJ PvavJ Aa BhA, acbc ac, aall ccg av

maa cl a lav

suPPly Chainoverview



16/104

A g , p cl calc

w, wa p cl a p

w hCs, ga, calc w. ia, w

c a hCs ga a a b bl.33 oc p ppa,

a bl. i a bg pc, bl

wll cpa w p a m g

g bac a. W a, p m w ma

g, ll wa, va pp, wc gla lw a

a a lq. t pp a cc qa

p a wa a , a m caba. oc

caba, a pacagg ca bl

va z.

t ca a mmal al w pa cl,

pla l cw w cga g, w l, pll

ab.34 oc bl, a pacag pcc qa

a ca .g., ca b, z. bl j w plac

g, plac ac a l l bl al b

mca. i a b, g ma b pacag

mall qa l cl cm.

yes

no

yes

no

yes no

B

Db

mcd/ C

Blend raw materialsto orm syrup

concentrate orspecic beverage

Is thisa diet

beverage?

Is thisa diet

beverage?

Shipdirect to

merchant?

Add articialsweetnerto syrup

concentrate

Receiveproduct

Receiveproduct

Add sugar/HFCS tosyrup

Packagesyrup

concentrateor shipment

Makeavailable toconsumer

Repackagei necessary

Send tomerchant

or nalcustomer

Add water,carbonate, and

bottle in appropriatecontainer

Receivesyrup

concentrate

Package orshipmentand ship

sp Pdc

: Cbd sf D (CsD) op md o



17/104

Fountain BeveragesW mag p al call pm bvag ba

w a bvag p, pc aga a w p

maac bl aw maal, c a lavg, cmcal, a

w mla cb abv. ul w bl Csd,

w hCs, ga, calc w a p

w pc.

A g , c p ppa, pacag a

a a bvag b l cl .

t p a pacag a m pccall b mc

cmmcal a . s a a m

pcall q a mall bl lq bvag ba. a bvag

ba aa, pb, a vc pv a l

ga qa, g a g a pcc ma a

a all pcc cmpa a pc bvag

ba.35 i p l a bvag b, b

wll ll a p cm. oc a plac al

, bvag ba ca aac a p,

wc m caba wa w a ac am bvag ba

a p cp j p bg v

al cm.

yes

no

Db

C (i, r, c.)

Blend raw materialsto orm syrup

concentrate or

specic beverage

Add articialsweetener/sugar/HFCS

to syrup concentrate

Package syrupconcentrate or

shipment

Ship directto nal

customer

Receiveproduct

Receiveproduct

Attach toountain

Fountain dilutesconcentrate withcarbonated water

when dispensed

Send tomerchant or

nal customer

Makeavailable to

consumer

Cc Pdc

4: B op md o



18/104

Syrup Producers

t ggapc b cmpa a pmal maac

p a cca pc a gall llw

ablm, c a bl, a av mal b lca a maj

ppla c a aa a cmml pc plg

p wa. hwv, c , a b a gca

, a compae a prmarly maacre o rk yrp a cocerae

pc av mv aa w aw maal, c a ga, a

m al accbl.37

g w ma w ma p pc pa ac

a c. A map ca, Cala a w

ga mb p maac, a sa g l

% al ma. t g cca sa

pa g pm aw maal a g ma pa

ga b wam clma. t MAlac g a a %

al p maacg acl, wc mal v l

ppla na. t Ga La g l % al p

maacg pa pm ala a,

wc pc c hCs, ma aw maal

p pc. t la gca ggapc aa sw,

w ta al acc % al p maacg

acl u sa. t p maacg pc ta

v b lag mb Csd pcg pla a a a

pm aw maal c a c a ga m plaa

a ap.38

: ed nb sp d Cc mc c ec s

1

5

3

7

2

6

4

8

9

5

6

3

21

97

8

4

W E S T

R O C K Y

M O U N T A I N S

P L A I N S

S O U T H W E S T

S O U T H E A S T

N E W

E N G L A N D

G R E A T

L A K E SM I D

A T L A N T I C

Additional

States

WV

SC

COMO

AZ

CA

NV

OR

WA

MT

NE

MN

IAOH

VA

FL

KS

UT

ID

TX

OK

NC

AK

WY

GA

IL

ME

ND

WIMI

PA

SD

NMAR

MSAL

LA

HI

IN

NY

TN

KY

VT

CT

MA

DE

NH

RI

MD

DC

NJ

Region

% o Syrup andConcentrate

Facilities*

wt 26%

rc mt 1%

stt 10%

P 5%

Gt l 16%

stt 19%

md-attc 20%

n egd 4%

*roundednote: the stAte-By-stAte nuMBers o syruP And

ConCentrAte MAnuACturinG ACiLities AreestiMAtes BAsed on stAte-By-stAte PerCentAGes

rePorted By iBis.



19/104

Bottlers

Bl a gca pla l a Csd. t bl

ma jb m p pc b p maac w

apppa g, a bl a va ca

b pacagg b. g w a ma

lca bl llw a mla pa lca p

maac; a cca aa g ppla

a aa a av wam clma. M a a qa % all u.s.

blg ablm a lca sa, llw b W,

wc ma p % u.s. pc. t pc W

g mal cca Cala, mla w

p pc. t mc gw pal W v

w a bca a aa p ppla gw, a

a g a ma c wam clma hawa,

Cala, a nvaa.40 t lag cca

Ga La g, wc acc % bl. t pc

g vl b amg a.

A aba aal b a ac gp val a

Cala, ta, nw y, a la av lag mb blg

ablm. W cp nw y, a av g

avag mpa, wc ca ma , b j

ac plag gca pc blg ablm

a. A ac ppla ; accg u.s.

C Ba, Cala m ppl a, llw b ta,

nw y, a la am ag blg acl,

aal p.41

1

5

3

7

2

6

4

8

9

5

6

3

21

97

8

4

W E S T

R O C K Y M O U N T A I N S

P L A I N S

S O U T H W E S T

S O U T H E A S T

N E W

E N G L A N D

G R E A T

L A K E SM I D

A T L A N T I C

Additional

States

WV

SC

COMO

AZ

CA

NV

OR

WA

MT

NE

MN

IAOH

VA

FL

KS

UT

ID

TX

OK

NC

AK

WY

GA

IL

ME

ND

WI

MI

PA

SD

NMAR

MSAL

LA

HI

IN

NY

TN

KY

VT

CT

MA

DE

NH

RI

MD

DC

NJ

6: ed nb sf D B c ec s

Region% o Bottling

Facilities*

wt 17%

rc mt 5%

stt 12%

P 6%

Gt l 14%

stt 27%

md-attc 14%

n egd 5%

*roundednote: the stAte-By stAte nuMBers o BottLinG

ACiLities Are estiMAtes BAsed on stAte-By-stAtePerCentAGes rePorted By iBis.



20/104

Distribution Channels

oc bl, ma b b g a va

cal b mag a al cm. Wl a

p a m bl b, w

v a mlm aclag b a wag,

maj a l cl mca. t m gca

b cal a pc g .

spma a gal mca c a WalMa a tag

acc alm al al vlm, mag p lag gl ma

al a bl wa. t cal b a m

labl c al pc .

t lag ma vc a g plac cal,

wc cl a a a l, er, ll-ervce reara,

a bar. A a rel o e ecoomc owr,ale va cael ave

ecreae a ewer people are g o. te ex cal cvc

, wc cl aal cvc a aac

ga a. t a a gwg ma pcal

aa, vaaw pag cl, wc ca

al vlm a ag gwg ppla cm w a

g. t veg mace cael a mpora ole or mple

prcae mae a plac l al b a, w w alav

; cal acc % al vlm. rg

cal a m ma c a g , pva clb, a

ca c, wc ma p % al cal vlm.

all, p g ma u sa Caaa,

Japa, a Mc l acc % al cal vlm. Alg

ma lag ba a v ppla a g

c, ba w pcall lc maac w

c pc a pg m m

u sa.

: m Db C sf D

BAsed on dAtA roM IBISWorld InduStry report31211, sodA drink ProduCtion in the us. WWW.iBisWorLd.CoM

Food Service andDrinking Places 20%

Convenience Storesand Gas Stations 12%

Vending Machine Operators 11%

Other 8%

Exports 1%

Supermarketsand GeneralMerchandisers 48%



21/104

Mag a g a mb baal

cag v la v a. o callg gwg p m

gvm a avca lm lma avg c wa

cl ag . nm gvml a av

av l a acv a pg aca w avg

cl a, alg w m lag a bvag cmpa,

ag lm avg vlal. Wl m

cmpa ll c a p avg cl, cmpa

av ag pm m all mag avg. i

b cp p vala w cmpa a

cg plg, b ma avalabl m avcac gp

mg cmplac w plg.

t c gca callg acg gg

w a Amca pblc cc w a vall al

a wll. W a gwg maj Amca pblc cc

w , a g ma pc a a

a mag mag a cv b

pc cm. All gm av b

wg vlp pc m a a

ba m cmp.

te o rk ry alo aapg o ew orm o mea a promoo,

lzg i a cal ma m a v cmmca w

cm. Alm all ba av ca wb a av b

vlp w a ag ac m. t wb a pv

aal ma, acv pp, a pm

cm. i a, ma ba av ccll lz va

m cal ma, c a acb, Mspac, tw, a ytb,

cmmcag w a mag cm.

t c bg b amg l a g p

al ta Cmm tC

l Mai F Ci a Ascs: A riw Is

eis, Aciiis, a Srai, a cb

lacap mag c a cl p . t

cmplm , w al vw Ccl B B Ba

CBBB Cl a Bvag Avg iav CBAi, wc

markeTinGoverview



22/104

w la t CcaCla Cmpa a PpC

av ma vla plg c cmpll lma avg

o clre er e age o 12. ally, we look a e egmeao, argeg,

a pg ag , a pv a

vvw mag m, wc cl ampl pc, pc,

plac, a pmal acv. A pa vvw, w al l a

ampl mag c wa AcaAmca a hpac

cm lla w g ag mag

pa mpa cm gm.

Federal Trade Commission Study

t tC l a p a acv cmpa

gag a bvag mag cl ag a

alc ag . t wa gca bca

pv pblc w cmpv vvw a

bvag cmpa mag p a acc.

t cmpa cl maac a bl; pc

pacag , ppa mal, ca, a ; a ma;

a vgabl gw; a qcv aa, a a

m ql ma cl a alc. icl

w aal ma, c a elevo, rao, a pr, alog

w ew orm o mea, c a elecroc ma, a m bl

avg m pacagg, avg, v pp,

a pm a a plac cl. all, al am

ga avg campag a l bvag a

lc caac, mv, lv pgam.

t tC ba aa g ac cmpl pc

a q cmpa pv p aa ac

avg pmal cag la c mag wa

cl, alc, a all ac.

t a , cmpa p a al $ bll

pm a bvag cl a alc g .

t cl:J te wo major Csd maacrer: te Coca-Cola Compay a PepCo, ic.J t lag Csd bl : t CcaCla Blg C.

Cla, CcaCla ep, ic. acq b CcaCla

Cmpa , PpAmca, ic. acq b PpC, ic. ,

a Cab scwpp Amca Bvag p a w

call d Ppp sappl GpJ nm jc, cal bvag, a Csd cmpa, c a

r Bll n Amca, rca, ic., a s dlg Bvag

: rpd Cdd t mepd 006

dAtA sourCe: 2008 tC study: MArketIngFood to ChIldren And AdoleSCentS:A re vIe W oF Ind uStr y ex pend Itu reS,

ACt IvI tIe S, And Sel F-re gul AtIo n

Cd

$0

op$0

t $0 b



23/104

Bl w cl bca a pbl ma

mag acv a lcal lvl, c a cl mag,

v pp, a pm.

Csd, qck-erve reara, a breaka cereal accoe or 63% o

al am p mag b cmpa. Csd cmpa

p ga am m mag c a cl.43

o $ mll p Csd mag , $ mll %

wa ab clba mag, alg bl wa

vg mac cmm pa cl ba al a

aal mag p.

i ereg o oe a e amo pe wa eavly kewe owar e

al ppla. A g w, Csd cag ag

gp ppall m a a cag . spccall,

Csd gm p $ mll mag, w a vwlmg

$ mll % c a alc ag ag.

: Cd d t m, rd b y epd 006

Dollars(inMillions)

CarbonatedBeverages

Teens Only

Children and Teens

Children Only

RestaurantFoods

BreakfastCereals

Juices andNoncarbonated

Beverages

SnackFoods

Candy andFrozen

Desserts

PreparedFoods

and Meals

BakedGoods

DairyProducts

Fruits andVegetable

DATA SOURCE: FTC STUDY: MARKETING FOOD TO CHILDREN AND ADOLESCE

A RE VIE W O F I NDUS TRY EXPE NDI TURE S, ACTI VIT IES, AND SELF REG ULAT



24/104

t p b w avg p ac

cag pmal acv:

. taal ma ma, cg lv, a, a p

avg

. nw ma, cg cmpap wb a ,

gal, wm, a val mag

. Pacagg a mag

. Pmm, c a cl mal

. o aal pm, cg pc placm;

mv a, v, a v gam avg; caac c

pm lc ; alc pp; clb m

; v; plapc acv bag pp; a

mclla mag p

. icl mag

A g w, bl Csd pmal pg wa

c cl acv, aal pm, a

packagg a labelg; ew mea, raoal meare mea, a premm

ma p ma. h a m p m pmal

aal Csd a jc/caba bvag cag:

Television s cmpa p $ mll clc

lv p, pg l % al lv

avg p p ba. i ca, p

$ mll alcc lv avg.

Radio t jc a caba cag a p

$ mll clc a avg, wl Csd cmpa

p m a $ mll alcc a avg.

Print s cmpa p bw $ mll a $ mll

p avg.

New Media Csd cmpa p $ mll w ma c

a gm, ab $ mll cmpap wb

c wa all ag, a $ mll i avg

c alc.

Packaging and In-Store Marketing t Csd cag p $ mll

alcc pacagg a mag; , %

c p ll cag.

Other Traditional Promotional Activities Csd cmpa p $

mll aal pmal acv; $ mll wa

pc placm c a alc. s cmpa p

m a $ mll alcc alc pp a

clb m . Csd cmpa p $ mll v

mag c a alc, a jc/caba gm

p a $ mll.



25/104

In-School Marketing t Csd a jc/caba cag

ma p % c ag cl p

$ mll a al $ mll. i a g

cl l mag acv a a cl b al

pam ma m pv cl wa a w a

cmpv a bvag cac.

Cross Promotions t Csd a caba/jc cag p

a cmb $ mll c pm c a alc a

$ mll c pm am a cl, wc wa gcal

l a ma cag.

i a acal, tC al a cmpa bm

ma ac mag a cl

cv m al c. t ac bm b Csd cag

c alc, ampg m wa cav lm

appal m a wa al alc am aca w. t

ac al w a pc placm lv w, cmb

w aal avg a a plac b a w, wa

a cv wa ac ac. t cmba ca pc

cg, a call, a pca b alc.

0: d C s t y spd 006

PercentofTotalSpending

TraditionalMedia

New Media In-Store andPackaging/

Labeling

Premiums Other TraditionalPromotions

In-School

M M M M M M

Juice and Noncarbonated Beverages

Food Products (e.g., Snack Foods,Breakfast Cereals, and Candy)

Carbonated Beverages

DATA SOURCE: FTC STUDY: MARKETING FOOD TO CHILDREN AND ADOLESCENTS:

A RE VIEW OF INDU STRY EXPEN DIT URES, ACTI VITI ES, AND SELF REG ULAT ION



26/104

o ac bm b cmpa w a mb

g g:

J Cl l mall pmm, c a , cl w a pc,

wa l cl a alc p lag pmm

a b g pm c uPC cmpa wb

p wa pz.

J ew c w ppla w b cl a alc.

im c a ca, lcc gam, p, v c ga

m a.

J i mag, c a l cal a l cp, w

ccl a gg a cl a cg pa

b pc cl.

J t pc pacagg wa a a gal g w a

pc wa a cl a alc g

pacla , cl, a vl. sm ac pacagg

w a w l ll q pc a a al

magg pacag, bca cl a alc l

a wl b cmpm.

t tC al a cmpa p a pmal acv

p a w c wa a pcc g, ac,

c, cm lvl. Alg cmpa p agg ba

cm, m p pcc am p agg

pacla ac, c, g, wc al $ mll.

spcc ampl Csd a caba/jc cag cl:J Pmg cc v hpac J samplg a pmal acv a va hpac valJ rag m a ag ba pz g v cmm

pa a pgam a ac b egl a spapag

pcl clJ ic spa wpa w J Pvg spalagag b cv hpacga

lma clJ spg baball am a ball v Aca

Amca J spg a a c Blac h M lma,

ml, a g cl J Cpmal avm c am c a

amm pa, gall c mlclal ag

t tC p pv g w pmal acv

a pccall ag . Alg g

l, w a ma pv tC wa

lp. Wl clam mpa av b ma a

cc av b , mpa mmb, w



27/104

vwg g, a aa w pv b cmpa

mlv a cv b a p pa.

sc al pblca , tC a c maj

a bvag cmpa a ma cl a alc p

aa a wll abl tC gag w mag acv a

p av cag c 2006; compae m alo prove e

overall roal prole o oe oo.44 t me aro, a

bvag maac, b, ma, a qcvc

aa cv cmpl . t cmpa w

gal cl p pl w pc.45

t ma bg g b tC cl:46

J t cag ma clJ t p ma a ma ma magJ t am p cmmca mag mag ab

clJ t a c mag acvJ Mag ba g, ac, c, cmJ Plc, av, ac a lag mag

cl

t tC al a pblc m dcmb , l szg

up Mag a Cl ob, wc tC ambl

pav, al gla, cm gp, cc

ac, a lgal cla c la mag

cl. t m c c ac gag mpac

avg cl, a a cal

g gvmal gla mag, a

a am pg wa lgla a

mplma cmma tC p.47

i cla w tC wll la acpa llwp p.

t tC p g m al q mag

ma , alg w Mcll obama Wi hs tas Fc

Ci obsip la Ma , gav pv bac

a lgla, g

gca cag a ma w ag cl a mag

p.48 t llwp p wll pv valabl cmpa aa

lp m cmpa a ag lgla plg.

t aa p p al c j p

vlpm lgla pacc a

am a cg am avg c a cl ag

a g. t lgla pacc w l b Ccl

B B Ba CBBB av, wc c a

ac ll mplma m pacpag cmpa . A

cp av llw.



28/104

Childrens Food and BeverageAdvertising Initiative

t Cl a Bvag Avg iav CBAi wa

lac nvmb b CBBB, w B B

Ba u sa a Caaa.49 t CBBB v acv

cal maplac aa. t gal av pv

cmpa a av a bvag cl w a apa

a accabl avg lgla mcam.50 t am

mcam avg mag c a cl ag

a g c al a a ll cc.

t CcaCla Cmpa a PpC, ic. a w cmpa a

av c vlal cmpl w av. B agg,

cmpa av pm :J dv a la % avg c a cl ag

a g mag a cag g a al

llJ B al ca a pc pm a b

a c w abl cc a gvm aa

c a usdA da Gl a MPam, a dA aa

al clamJ Ca a val plg a cb cmpa cmmm

av, wc m b appv b CBAi a

i a, cmpa m al ag :J rc pa lc caac avg c

pmal a cl ag a g a m q

magg ca cb abvJ n pa acvl pc placm al

am c a pmal ag wa cl ag

a gJ Cag acv gam c cl ag a g a

cl cmpa ba mag cl al ll mag

all, pacpag cmpa m ag av

bvag pc lma cl.

W ba pcpl l, w w a a cl l a plg

g b CcaCla Cmpa a PpC, ic., a vw wa

agm av cl acall al. all, w am

l CBBB av pa

pla a plg plg lm avg cl.

t val cmpa plg a cmpapcc cmmm

gag clc avg ma ma a cmpa

w wb. i a, plg cl ma ccg

wc pa lc caac avg wll b

. all, plg al ca cmpa pcc cmmm



29/104

gag acv gam a agm a

pc placm c c a cl. CcaCla a PpC

plg a cl : CcaCla Cmpa a plg

lma all avg c a cl ag a g, wa

PpC a plg av l all mag ag gp.

t c cl b ab ac a PpC l a

pc b al ca a w ag pc, l

CcaCla Cmpa; , w cmpaw ag

mag cl ma .

hglg m CcaCla Cmpa plg cl

App cmpl plg:51

J n placg a ba mag lv, a, a p

pgammg a pmal c cl ag a g

a w ac pl g a % cl J Avg pa lc caac a m cmpa

avg a ma a pmal c cl ag a

gJ n ag w al c a mm a

pmal c cl ag a g pc placmJ n bg avg mbl p cl

ag cl; w aa a avalabl, placg mag

mag i mbl p pgam w m a %

ac cmp clJ n ccg pmal acv gam a a c

pmal cl ag a g

hglg m PpC, ic. plg cl App

cmpl plg:52

J % avg clg lv, a, p, a i

avg c pmal cl ag a g wll

pm l pc a m PpC sma sp53 al

ca cmmm plac a Jaa , J tpa lc caac wll l b mag c a

cl ag a g sma sp pcJ PpC wll pc placm a PpC pc

c pmal c a cl ag a gJ t cmpa wll allw a pc cp sma sp pc

b cl acv gam w ag c a al cl

gam ga labl a bg cl ag a gJ PpC wll p dVd Ga mv c a cl ag

a g

t CBBB a vw cmplac m a

plg w g, w CcaCla Cmpa a ll mplm

plg a PpC, ic. a acv paal mplma. t

l w pbl Jl a w a m,

cmpa a p a ll mplm plg

w mscmpla, ba lp maal bm



30/104

CBBB.54 t cmplac w lavl m a vlv

a c lag cmpa wb a pla maal c

a cl ag a g a m ca b

pc.55

o m a CBBB vw pc a pbl l

w ba val pc ma. t pc ma

wa a pacpabm p alg avg acv c

a cl ag a g a g w cmpa wa

cmplg w plg ma. t c pc ma cam

m p am cc b CBBB ac cmpa

wb, ampl avg, a llwp a pblc q

cmpla. Alg c vc a alca

ma ppl ga ca avg, w

a l l p m a maj ma

vw pc wa pv cl b cmpa bg

cz.

t m c CBBB vw wa pbl a cv

acv a plac . Aga, maj g wa a g lvl

cmplac vall, w vla lv. M vla

cl a, p vla, w w avm

a lma cl, a w w cmpaw wb.

t p am pcc cmpa pbl

ac.56

i a CBBB w vw, avca av al b pg

ab a bvag plg. Cl nw, a aal

avcac gp cl , cmm a am

CBAi dcmb . t gg a a, al

qal a bvag a ag wa cl a

mpv. k g p w:57

J m , a all p ca b %.J A al c a , vgabl, a wl ga

acc l a % al a m pacpag cmpa. t

% a w w lw ma al val.J t lc caac al bl m , a,

p plg, % a cag lc caac w

all p .J Ab % a lv w b cmpa a a

pacpag av.

sc vw, CBBB a pbl plg

pacpag cmpa a bvag , clg

PpC a CcaCla. Alg p w pbl a

vwg p a cmplac, a cp vw

cmplac cl b lca. Alg CBBB pbl a p

pgam pacpa al aa Jl a b

pc l spmb , CcaCla Cmpa wa



31/104

cl ; cmpa a a gag a

a bvag avg pmal c a cl ag a

g.58 Mawl, PpC a vlp w glbal ca

avg cl, a wll a aa ac a

pc. PpC al plg a wll av

a wa, jc, a aba pc ac a c

m a % cl ag , pa pa ma.59

Pledges in Elementary SchoolsAlg w plg, cmpa, clg CcaCla a PpC,

av ag av lma cl ga k, g

mpac cmmm l b a ml cp bl

agm. spccall, cmpa a pm pm

al pcc ba bvag pc maal

ppa c pblc, pva, pacal, a

ca lma cl a a dc Clmba.

t agm lm pacpag cmpa m cmmcag

w ama, cl mpl, pa, al.

m, cmpa a pb m pag w cl

pa gaza a pc al m g

aagm w am pa a wll b .60

t av appl :J dpla a bvag pc alJ Caabl ag acvJ Pblcvc maggJ im pv cl amaJ Caabl a ma b pacpag cmpa cl

Alg lma cl plg pb avm c

a cl ag a g cl, cl ba

pc pc a m, m ba, caa

gag a pc a a bg v a

al, a lg a c gag cjc w a

bvag pc al. i a, pacpag cmpa ma

al p wa cv pgam lma cl a

lg a pgam a ma pa. eampl cvz

bav cl ag a ca mb b, acvg g

ga, a ag g cc ma, all wc ca b wa w

a pacpag cmpa pc.

Pacpag cmpa a al pm ma caabl a

lma cl, pv pp, w v. t plg

a, Ma pacpa av mal caabl g gvg pgam

pv cl cl vg pvlg

w maal qpm b ca a, g

cm v a mg w pc

.g., wg l p cc a b. t pgam,

wc cpa ma b l caabl a c

m applcabl gla, a cp iav.61



32/104

t c cv all aa cl pp, clg

alc l pmal lma cl cl. i a,

pacpag cmpa ca av cl b a ap

lma cl a m a fcal, clp v.

Marketing Strategies

t aalz mag pacc lz b alclc

, w appl a bac mag ml call stP: a ag

pc a am gmg, agg, a pg ag

b a a pcc cmpa. t Amca Mag

Aca pc a llw.

Market segmentation a

t pc bvg a ma c b cm

a bav am wa av mla . eac b

ma ccvabl b c a a ma ag b ac w

a c mag ag. t pc bg w a ba

gma a pcpcc ac a lc c

cm qm pv mag vaabl

pbl a pca bav, ag, b g,

, pc, lal. sgm cp a

c, ba abl gm, acc

vaac gma ba, a gg cmpv

ag mplca ampl cp a mgapc,

ggap, pcgapc, cm z, a .62

Targeting a

t pc cg a pacla gm a al ppla,

wb ma lz p a a bma

a accmpl p bjcv.

all,positioning

t cm pcp plac a pc ba ccp

a ma gm. i m ma, a p acv b

acag b a ba w ll

gm. M , pg vlv a

cmpa g m cmp b mag mplg a

cmpa m pcc ab.63

t ba w mag ag alclc

, w al P ml b a

mag m ag pcc cm. W cl a vw

ampl pc, pc, plac, a pm ag.



33/104

Segmentationt a gma, l bg a p g ,

w bvag a a wl. i b w b pc

cla alclc bvag a . W pc

cla, ma ca b gm b pc m: Csd,

bvag, bl wa, cal bvag, p , a .

W ac pc m, ma ca b gm

aal bpc m; ampl, Csd gm ca b b

w a a gm cla a

cla . Aal ampl a w g .

eac pc cla a m av cm gm, wc ca

b g a mb appac:J dmgapc gma b g, ag, a cJ Baval gma pc ag .g., lg, mm, a

av ; , mm, g ba lal; p .g., w

mal pcal ccaJ Pcgapc gma, c a b ll pal

mgapc gp a a mag aca w pc

: s B id

BeverageIndustry

NonalcoholicBeverages

Carbonated SoDrinks (CSDs)

BottledWaters

SportsDrinks

FruitBeverages

FunctionalDrinks

Other

AlcoholicBeverages

Cola

Noncola

100% Fruit Juices

Fruit Drinks

Juice Drinks

Unlavored Waters

Flavored Waters

Liquid

Powdered

Dairy/Soy-BasedDrinksEnergy Drinks

Ready-to-DrinkTeas/Coees

RelaxationDrinks



34/104

: s d m s

Product Core DemographicBrand Message(as ound on Coke.com)

Brand Message(rom Katie Bayne,a senior V.P.,Coca-Cola Brands)

Flavor Prole(according to ScottWilliamson, Coca-Colaspokesman)

Diet Coke:lcd ;td t

pt

v d tpt,t tg tcd t

t t t , g gt

Dt C t, t , t dg t pp.s t, g, dc,

pc, ggg, gg dt gd.

T dt c tt ttp t t t t d. it pc.

it ptct, t tt ptct.

accdg t i d t t dptd cd t

t d t n C.

Diet Coke w/ Splenda:lcd m; td tspd [c]d cpt

- t --d,g gt

t t td t tt spdbd st, t t Dt C!

a dt c tt, t pt t, d t tdt spd, c t pp tt. it tt p.

it t t c Dt C.bt t spd, tt dc, d t spd t t.

Coca-Cola Zero:lcd j; tdt pt dc pt

- t --d,g gt

a d g ttt Cc-C ttd tg . ntg ttcd ptt gt t c.

it t p tt tt ct t t-pcd, t-pd d, dp gg. Tt t tc pt t ptg.

it td t tc gCc-C.

Tab:

lcd ;td tcc dpt

u-ptct

t c tc

T cd t

pp-ct tt d tptt g td t d.

it ctg t t

t d t t pt gp pp ct t T, t t t cttd.

it tg c , t

tt dtct cct.

dAtA sourCe: WWW.AstCoMPAny.CoM/node/54047/Print

Demographic Segmentation

dmgapc gma g ag, g, a ac cmml

ac mag pp. Alg v w, a,

lag ma pla a gm av cl cl ag

a g, a g al ma gm a avl

ag g ma ma pm, pcall wbba

avg val v, a pp. i gal, agba

gma ca b b w cag:J y ag gal: lvag pg pw a bl ba

lal al, a a wll b ca g alJ yg al ag gal: c bl ba lalJ Al ag gal: c mal pc

o gal avg blg ba lal. i

cmpa a ccl g a gm cm m

g g al, wll b ll c av

m, bca l b lal ba b al.

A cmp ma gw, maac a lg

vlp pc pcc gm ma w pbl.

ampl, CcaCla Cmpa a b wg a mgapc

c gma ag a magg aga w cla

l pc, a g .65



35/104

Behavioral Segmentation

Baval gma a b a cl bg b

CcaCla Cmpa a PpC la v c a sp

Bwl, la c a Cma, a a c a mm. up l

, PpC wa c lag av g sp Bwl,

w a ag a ball a, b , Pp ac a

wl av g gam va lv cmmcal b wl

a avg c l pm, pcall va cal

ma.66 t cmpa aal cmmcal sp

Bwl pm Pp Ma, cal Csd am a m.67 t Cca

Cla Cmpa ll c a baval gma ac a b

cag a Cmam ca a avm.

Targetingtagg ma bapcc a va pg

pc. tagg a ma m: cmpa ca ag pcc ag

gp, cm, v c gp blv wll b m cl

b av pc. i c, w l a m ampl

agg ac gma gp. W al a a cl

l a cmp pa cag a blac a hpac gp a

cm ma, a a w ma ag

gp.

CSDs

Accg Ml, a ma ac m, a g al a

pma ag Csd mag, a g ma Csd

w gm, a wll a l w cl a w

cm blw $,.68 o bgm a av b ag,

pcall w Csd, a mlag a al ag

a l.69 t c pal a l ppl

gp bcmg cagl al cc a m p

ll c a ab wc q lmg p

ca cm a gla ba.

Wl gm a pma a ca ag, l b

a vall cmp Csd a b clg v la

w a a mb a, agg m a ca lvl

al cc lm l bg a a l

c. t, ma a lg alav a, m

ca, mall bgm ma ag ca

al. t hpac c bgm a Ml a

a gca pp Csd maac, bca ab %

ag u sa a hpac cmpa w W

ag, w l acc % al ppla. i a,

hpac bgm gwg apl,70 cag gca

pp Csd maac ag hpac w a a

cl mag hpac a La cl.



36/104

o c ampl agg blgal a bclal hpac a

g al d Ppp Va campag, wc pla a

gg m v a, bca bclal av a

ac cl.71 t a a hpacag lv cal a

a a.

A ampl agg a pcc gm ma

c CcaCla Z a Pp Ma; b pc a ma

avl mal . t mag mag a

ca b m, . t mpa Csd gm, a Ml

w a m a cagl abag cag m ca

bca al cc b al pa bca m av mpl

mga cmp cag c a g ;72 ,

Csd maac ca ba l C Z a Pp Ma a aac

mal lg al .

Fruit Beverages

bvag ma ag a w ag gp pg

pc. yg al ag a ag % jc

mag, wa al ag a ag mag

ppa jc a pw jc .73, 74 Cl ag

av g cc a qc jc cmp w

cmpa w all gp ma b av v ll mag

ag cl a m. M avg cl jc

, c a Jc Jc, M, a Cap s, acall c a

pa a cal b jc. t a ag

paal m b ccag b pa wll pv

cl b pcag av pc.75

o jc a ag ag gp b g cal

clam pcc bvag, b ag avaag cm

pc bvag a pv a b, c a vam a

. i ma a, pc cmpa w a

a g ma lav b cm.

ovall, jc cmp a ma al la; b al a

cap cm g a alav Csd, wll pbabl

a avaag pp pa gm b clg

am a gwg ppla hpac a AcaAmca.

t a pp a wll vlp a lwcal v

g pc a ca b ag alcc mlag

l gm.76

Bottled Waters

t bl wa ma a a cl cl a mb

ac, c a m cm wcg pvalabl ba. o

ac cl a g ag am lg m, a a l

pcv val a l aca w bl wa gav

p ab wa c a vmal mpac. Ma av



37/104

aall ag a v w ag ac gm, b gv

c cl bl wa cmp a cm cla

m acal a c , bl wa pc

av a gm ma a al mag pcc

gp a ma a.77

Accg Ml, ppl ag cm lag am

wa a a a pma ag ma. B bca lvl

cmp ac all ag gp a a g, ma

gm lav a lav wa. yg cm a

ag lav wa, a ca b p a a alav

Csd, jc, cal bvag. A ba aa ag gp

a ag lav wa, alg ma w ac, lav

wa a ma a m gala gm ma g

clb m, cal ma, a gam.78

Functional Beverages

t ag ma cal bvag ma a g

all b, vam a mal, a laa al ag

. t gm ma wc a ll pca a cal

bvag a l al gm, wc a v abl a

pa a ma cag cal bvag. Alg

l gm cl av g ma pa a

g cpa ma, gm al

gwg a a mc a pac, ma b aal pp

cmpa lg vlp w pc al g pc

appal mgapc. i a, bca cal bvag

a pcall pc g a , ma a

l w aal cm $, $, a cabl

m ll a m lw cm gp p g

bvag, a a mag mag cal bvag wl

b ag wa val w lavl g cm w lv al

cc pp mlcla ll.79

sc cp g , ag ma a pmal b

g mal ag . B gv a g ma a

ll gw bw a , pcla a

pacla gm ma acg a aa p. Ma

a lg ag bab bm a hpac ac b

g cal b g .80

A ca ag ma g cllg a

b g. t ma w g pal gw,

pcall amg mal. o gm wac cl W ,

w a c l hpac g cmp cmpa

w W al.81 ra gw w W ma

va; a gw g l b a ga

a g al w av mbac c am wa a



38/104

l ga. t ma b a pal c gw a

gm g l.

Sports Drinks

t aal ag ma p a b acv g al

mal pcall cllg ball pla, a cllg a pal

p am pla, w blv a p gv m a cmpv

avaag. ol la v a av p a a w

ag a cl wm a caal al. sll, wm

awa cmg p mlv bca g calc

c, b a m ll a m b p ppl,

c a cl. t cmp pa av l

vlpm w p ag mag gm:

a mva m pca p pal b

ca , a a ag wm b mpazg

b p wll gv cl l mmb.82

A ma ma, av b pp pl

gm mall gp b cag pc a ag cm

w pcc . eampl cl:J sp pccall clJ spcal mla pal alJ mla ma cmp b, g, a a a wJ rcv mla g lp gz mcl a j a

cJ Lwcal v calcc cm b

CcaCla cmpa a PpC av ca lwcal v

ga p , Pwa a Gaa83

hpac a AcaAmca ma pa cl g, a

a pca a wll b m pp pa

gm gwg ppla.84

Consumption Patterns and Examples o Target MarketingDirected Toward Black and Hispanic Consumerst abv c l a ampl agg ac va

gm alclc . i c, w

ama ag pa b ac a c, a m

gp ma abvavag cmp va pc ac

m gm. i a, w wll c avg aa a

ma w ma alclc bvag c

pccall wa hpac a AcaAmca cm.

i Amca l vall, Csd a m cm p

, w % all p a pav v Amca

l cag a m p Csd. Jc a

al v ppla, w % all l cag a cm

m m jc a a l, pal, lvl cmp.85

dp lavl g cmp a, b val Csd



39/104

cmp a l jc cmp av a cl c

, wc m ll l cm bcmg m

al cc a wcg awa m gcal Csd a

bvag m all alav g .

t aa m g w a mb abl

cmp amg acal a c gp. i Csd gm,

b AcaAmca a hpac cm a gcal m ll

Csd a avag ppla; a al l ll

Csd. W cm a m cl a avag

Csd all m.

t jc gm al w val g cmp pa.

AcaAmca cm av a g ll g

bvag a acal c gp. AcaAmca a hpac

cm al av gcal g cmp a p a

g a gp, wc abl bca cm

a c ag ac mag la

pc.

: td P Cp, m 004j 00

Base: Adults (ages +) who report any consumptionin each category

May May

,

May June

,

April June

,

% ChangeBetween

&

CSDs (Net) 89% 87% 85% -5%

ndt sd (C d nc) 73% 71% 69% -6%

Dt sd (C d nc) 40% 43% 41% 2%

Bottled Waters (Net) 65% 70% 68% 4%

nctd bttd wt 61% 65% 63% 3%

spg wt, stz, d nt sd 23% 24% 22% -5%

Iced Teas (RTD) 42% 43% 45% 7%

Cofee Drinks (RTD) not asked 27% 26% N/A

Sports Drinks 36% 39% 38% 5%

Energy Drinks 11% 14% 15% 27%

Fruit Beverages (Net) 90% 90% 89% -1%

og jc btt, C, Ct hd u 75% 75% 73% -3%

Tt d vgt jc hd u 40% 40% 41% 2%

rgtd/Cd ot t jc/D (rTD) 37% 38% 39% 5%

ngtd ot t jc/D (rTD) 27% 28% 27% 0%

dAtA sourCe: MinteL/exPeriAn siMMons nCs/nhCs: sPri nG 2005 AduLt uLL yeAr PoP, exPeriAn siMMons nCs/nhCs: sPri nG 2007 AduLt uLL yeAr PoP,exPeriAn siMMons nCs/nhCs: sPrinG 2009 AduLt uLL yeAr PoP



40/104

o pbl plaa gaavag cmp pa

b b AcaAmca a hpac ma cl b gp

pcp Csd a p mag. A g w, a

Ml v val a, cmpa w acal a

c gp, m AcaAmca a hpac cm g

Csd a cg avm. t v al w a hpac

p g p avm w cg. t ma,

pa, pla w cmp p g w hpac.

A pcg paagap w, AcaAmca a hpac

cm a mpa , a p

cm pc. Gv gaavag cmp

pa, mpa a m ab gp a w

av a cl agg m.

AcaAmca a hpac c a lag a gwg ma

a ma a lg ap b g a va

m. i ac gp, la c a CcaCla

a PpC av ca mlclal mag am, wc vlp

ag campag a pa cl a q cal m

gp. i gal, campag am bl ba lal a

ma a.86

4: ad ncc B b sbc d rc/ec

All%

White%

Black%

Asian%

Hispanic%

CSDs (Net) 85 86 84 76 86

ndt sd (nt) 69 68 78 66 78

ndt C 59 58 66 57 69

ndt Ctd nc sd 57 55 68 53 64Dt sd (nt) 41 43 28 36 32

Dt sg- C 37 40 23 31 27

ot Ctd Dt sd 25 26 20 22 19

Bottled Waters (Net) 68 67 75 76 74

nctd bttd wt 63 62 71 70 67

spg wt, stz, d nt sd 22 20 28 25 35

Sports Drinks 38 36 44 33 57

Energy Drinks 15 13 20 15 26

Fruit Beverages (Net) 89 88 94 90 89

og jc 73 71 83 79 79

Tt d vgt jc 41 43 34 30 33rgtd/Cd ot t jc/D (rTD) 39 35 55 50 42

ngtd ot t jc/D (rTD) 27 29 22 25 23

BAse: 25,318 AduLts AGes 18+dAtA sourCe: MinteL/exPeriAn siMMons nCs/nhCs: sPri nG 2009 AduLt uLL yeAr PoP



41/104

eac gp a q caacc a ma la wa

lvag a mag a w ag

cm.

Hispanics

Accg lp kz, p a c C

hpac Mag Cmmca a la sa uv:

hpac a c a ab mag c

pccall m a m a c cgz....t a

a ccal a ppla ab avg mag.87

Ma a a vlp campag a

caacc. o ampl PpC PpMca campag, a blgal

am pgam ca pap w tlm, a Amca

lv w a baca spa. Accg Maa

Bmz, maag mlclal mag a PpCla

n Amca:

Pp a ma a gca p mc pgammg c

c a gal pa hpac a cl. i mpa

ac g [hpac] w magg a lva a

ac, bca bvl a .88

Mag a al lvagg gwg cal wg ma

cc w hpac cm. Mag ac w a

hpac are more lkely o bere a bra o a ocal eworkg e a

hpac a, a AcaAmca a wll a hpac a m

ll cal wg pac a p w ab

pc, vc, a ba a gal ma cm a.89

: ipc rc/ec Pcp B ad

Has the Most Exciting AdvertisingAll%

White%

Black%

Asian%

Hispanic%

ndt sd 15 14 17 11 22

spt D 15 14 16 29 18

eg D 14 14 12 14 14

ecd bttd wt (.g., vtt Pp) 4 4 5 6 4Dt sd 3 3 3 2 3

t jc % jc 3 3 4 2 4

t D (.g., Cp s) 3 2 5 1 2

bttd wt (ud) 2 2 5 4 3

Dt k 41 44 34 30 30

BAse: 1,969 internet users AGes 18+ Who hAVe BouGht nonALCohoLiC BeVerAGes in the PAst MonthdAtA sourCe: MinteL

4www.pla.g | www.plp.g Bag dw Ca: A G s d i


42/104

Arican-Americans

Accg ylaa W, aa vc p AcaAmca

Mag CcaCla, AcaAmca , pacla, av

pv b u sa: bca abl

ap cl ccal, CcaCla a ca ag campag c a

r y lw , wc pccall ag AcaAmca

w a pp mc .90 t campag cl lm

pacagg almm a gla, a gal wpa w lag

al w mc pz mc.cm, pp v, a mc

la awa a cm cl vw mcwa.cm. A w

al plac vib magaz, Bet.cm, a ba a a.91

i a , ma al ag AcaAmca m.

t a a mb a a ag ma

ma. , accg a p m a mlclal

mag wl:

Wl AcaAmca mm a cmm cg vall

pg, a wllg acc aal ba lal

av m. AcaAmca mm a a l ll b gc

ba a cpa c bacg.

t a a l bg m paal gag w

ppg pc a avg a g qal pcp aal

ba.92

t bvag cmpa al c AcaAmca m b

gap aml. CcaCla AcaAmca ag

a u.s., a w lc m.93

smlal, PpC a AcaAmca m a a

ag a vlp W ip campag, wc v a

c Pp AcaAmca mag ac .94 t

campag ag m g a gal cmm, Ppwp.

cm, w a a a pal a paal g.95

PpC ag cm a ga bzz va acb, p a

essc a Bac eis ag ac taaj P. h lcg

lv a m, a al pa a b cp

a magaz ba c paal a mvaal

llg.96 t campag ma a w av a ma a

g cv w call mmm blgg; campag a ag

m l a bcmg al cmm.97

Spending by Media Type

A vw avg pg m Jaa

g spmb w a mb g , w

pg maw wa cmpa w pg a pccall ag

hpac a AcaAmca. t aa w a ca p

ma, c a lv a a, w m ql ac

hpac a AcaAmca ac a ma p

maw. A vw ba ma ag m



43/104

Jaa Ag pv m gala al gag

pcc ma av hpac a AcaAmca;

vw w av mag Csd a ssB

ma c wa hpac a AcaAmca, cmpa w

maw .

A % al avg pg, maw avg w

lv acc lag p pg

m p g . Cabl lv ma p a

aal % avg pg, w avg p

magaz %, lv p %, a lv ca %

g p v cag ma p . dp p

vall gw i avg, l acc %

maw ma pg b alclc ;

mb pgl lw cmpa cag b cl ca

a c avg va i gcal lw a

m ma.98

i cmpa w maw vw, hpac a

AcaAmca ma w m gca va m

m pml ma p b pg g m p

am. i al, avg pg ac all ma p pccall

c wa hpac ma acc % maw

pg g . t maj hpac avg pg

wa w lv, wc ma p % al am p

ma g . ra acc cg am

hpac mag pg % cmpa w bg l

m ma p ma vall, mag p j % al

maw pg. i ma al b mpa a cabl lv

l acc % al hpac pg, pbl cag

a ma a b p m ma b placg a

6: ad spd

Media Type

Total Spendingor All

Audiences

% o SpendingAimed atArican-

AmericanAudiences

% o SpendingAimed atHispanic

Audiences

Tv nt $565 1% 9%

Tv C $452 6% 0%

Pt mgz $173 1% 0%

Tv spt $79 1% 3%

Tv sdct $77 2% 0%

rd $76 18% 21%

o $47 1% 2%

Pt npp $23 0% 2%

Pt Td $1 0% 0%

Total $1,492 4% 5%

dAtA sourCe: CoMPetitrACk AdVertisinG trACkinG serViCe, MonthLy trends sPendinG By AdVertiser AndMediA tyPe or nonALCohoLiC BeVerAGe industry (JAnuArysePteMBer 2010)



44/104

w lv, wc al accbl, v cabl lv, wc

q a aal p b cm.99

t avg c pccall wa AcaAmca ma

w a w q w cmpa w pg maw a

wa hpac ma. spg am a AcaAmca ma

acc % maw pg l a al p

avg hpac ma g . t maj

AcaAmca avg wa p cabl lv wc ma p

% al am p a ma a a wc acc

a aal % pg. A al ma, cabl

lv wa a ppla mm w AcaAmca ma

g . A hpac ma, a wa al a v ppla ma

p, accg a qa al ma pg c wa

AcaAmca. nw lv wa al a ppla m avg

AcaAmca ma. P magaz acc ab %

al AcaAmca mag pg lw cmpa

maw pcag pg cag. Magaz avg

ma p v ma p av AcaAmca,

b wa al a ppla w hpac ma.100

: Bd hpc ad spd b md tp

Media TypeAmount o Hispanic

Ad Spending% o HispanicAd Spending

Tv nt $52 70%rd $16 21%

Tv spt $3 3%

Tv C $2 2%

o $08 1%

Pt mgz $07 1%

Pt npp $04 0%

Tv sdct $0 0%

Pt Td $0 0%

Total $74 million




45/104

Spending by Brands

Avg pg b ba al w m g

w maw vw wa cmpa w bapcc pg

c wa hpac a AcaAmca cm. Maw,

CcaCla pg acc lag pcag, mag p %

al ma pg. t Pp a Gaa ba, b w

b PpC, acc % a %, pcvl. A g a, b,

a c lla, Csd ba c a CcaCla, Pp, a d Ppp

ma avg pg maw. t ca wa

hpac a AcaAmca ma. Wl CcaCla p

av hpac ma m p w %

al avg pg c a hpac,

ba mag p maw p v ba b pg cam cl

mag p v hpac ba g . i ca,

ga ba AcaAmca ma w mla

maw ag.101

: Bd ac-ac ad spdb md tp

Media TypeAmount o Arican-

American Ad Spending% o Arican-American

Ad Spending

Tv C $28 53%

rd $13 25%

Tv nt $6 11%

Pt mgz $2 4%

Tv sdct $2 3%

Tv spt $1 2%

o $06 1%

Pt npp $0 0%

Pt Td mgz $0 0%

Total $53 million


: tp Bd b o m ad spd

BrandTotal Spending

or All AudiencesRank Among

All Audiences

% o TotalSpendingSo Drink

Advertising

Cc-C $173 1 12%

Pp $109 2 7%

Gtd $88 3 6%

v $79 4 5%

D Ppp $70 5 5%

Advertising Spending $1,492 million




46/104

b: ad spd Dcd hpc tp Bd

BrandSpending Toward

Hispanic Audiences

Brand RankAmong Hispanic

Audiences

% o TotalSpending on

Hispanics

Cc-C $14 1 19%

Pp $1 13 2%

Gtd $04 17 1%v $0 47 0%

D Ppp $3 9 4%

Advertising Spending $74 million


c: ad spd Dcd ac-ac tp Bd

Brand

Spending TowardArican-American

Audiences

Brand RankAmong

Arican-AmericanAudiences

% o TotalSpendingon Arican-Americans

Cc-C $4 3 8%

Pp $4 2 8%

Gtd $2 8 4%

v $3 6 5%

D Ppp $5 1 9%

Advertising Spending $53 million


A vw ba ma ag m Jaa

Ag pv m gala al w ga

pcc ma lvag av hpac a AcaAmca

ma. Alg vw l a all m ma, l

c blw paagap pccall c

avm c a AcaAmca a hpac cmmcal

cabl lv a a spalagag w sLn a

0: tp Bd b ad spd hpc dac-ac m

Hispanic Arican-American

Rank Brand Amount Brand Amount

Cc-C $14 D Ppp $5

nt $11 Pp $4

nc $8 Cc-C $4

uP $7 s Dgt $4

lctd $7 nt $3




47/104

magaz a wpap avm llwg

cag:J n CsdJ d CsdJ jcJ lav a mJ ncaba waJ Caba a lav waJ eg J sp

Wl aa w avalabl w lv a a a, wc

w w m ppla m ma abv

c, wa cla wa c wc w lv a

a a cl b cla a pccall agg a Aca

Amca hpac ma. t, ma p p

vw w a cl b w a lvl ca a

avg AcaAmca hpac a ag ma. i a,

abv cag w c m lag aa bca

p m m ppla maw, a a

c p g p.

Cable TV/Spanish-Language Network

: Cb t s rd b nb nccB Cc s md

Rank Cable TV Station Number o Commerical Spots

Tbs 242

d nt 236

nc@nt 220

hGTv 218

mTv 199

TlC 198

esPn 195

lt 195

esPn2 187

Cd Ct 184

TnT 180

b 174

bc ettt Tv (beT) 166

wGn 165

e! 162

dAtA sourCe: kAntAr MediA, BrAnded entertAInMent report(netWork And CABLe tV nAtionAL, JAnuAry2009AuGust 2010, And CAteGory=CABLe tV And sLn t V)



48/104


49/104

Magazines

t p ma vw wa magaz. t aal c

magaz cla cag hpac magaz, wllw

AcaAmca magaz, a u.s. magaz ma a a wl.

Ac all u.s. magaz a w g cag,

bvag ma p % all avm. n Csd

acc l %, a p acc l % al

avm maw g a.

: Pc ncc B Cc sp-l n (sln) t

dAtA sourCe: kAntAr MediA, BrAnded entertAInMent report(netWork And CABLe tV nAtionAL)(JAnuAry 2009AuGust 2010), CAteGory=CABLe tV And sun tV

Diet CarbonatedSo Drinks 0%

Sports Drinks 3%

Fruit Juices 6%

Noncarbonated Waters 7%

Energy Drinks 18%

Nondiet CarbonatedSo Drinks 21%

Fruit Drinks 45%

Carbonated andFlavored Waters 0%

b: Pc ncc B Cc

Bc e t (Bet)

dAtA sourCe: kAntAr MediA, BrAnded entertAInMent report(netWork And CABLe tV nAtionAL,

JAnuAry 2009AuGust 2010, CAteGory=CABLe tV And sun t V)

Fruit Juices 3%Noncarbonated Waters 4%

Diet Carbonated So Drinks 4%arbonated and Flavored Waters 6%

Sports Drinks 8%

Fruit Drinks 20% Energy Drinks 21%




50/104

: md mz B ad

note: PerCentAGes Are BAsed on totAL BeVerAGe AdVertisinG ACross the u.s. MAGAZine MArket As A Wh oLedAtA sourCe: kAntAr MediA, BrAnded entertAInMent report(netWork And CABLe tV nAtionAL,

JAnuAry 2009AuGust 2010, CAteGory=MAGAZines And hisPAniC MAGs)

Nondiet Carbonated So Drinks 5%

Diet Carbonated So Drinks 5%

Carbonated and Flavored Waters 10%

Energy Drinks 10%


Sports Drinks 11%

Fruit Drinks 22%

Fruit Juices 26%

t maw ca avg eb,

essc, J, a Bac eis, wc pmal ag a Aca

Amca ac. i magaz, wa a Csd

acc % all avg, a lav a

m ma p a aal %. t ca a

avg magaz wa avl ma b cag a

ca l llcal a maj llcal

g b.

b: ac-ac mz B ad

note: PerCentAGes Are BAsed on totAL BeVerAGe AdVertisinG in MAGAZines tArGeted At An AriCAn-AMeriCAn AudienCe.dAtA sourCe: kAntAr MediA, BrAnded entertAInMent report(netWork And CABLe tV nAtionAL,


Sports Drinks 0%Carbonated andFlavored Waters 0%

Fruit Juices 2%Noncarbonated Waters 4%

Diet Carbonated So Drinks 6%Energy Drinks 6%

Fruit Drinks 23%Nondiet CarbonatedSo Drinks 59%

A mla ca b hpac magaz. o

avg vw magaz agg a hpac ac g

cag clg nwsw esa a p magaz eSpn

ds a risa), % wa Csd g c. sp

ma p a aal %. t aga w a ca

maw u.s. magaz mb avm,

Csd ma avm hpac magaz, j a

AcaAmca magaz vw. Ac Csd

a cl ampl aa avm all u.s.

magaz, clg hpac a AcaAmca magaz, %

all Csd avm w AcaAmca hpac

magaz g . ovall, avm c a Aca

Amca hpac ac ma p % bvag avm

magaz.



51/104

c: hpc mz B ad

note: PerCentAGes Are BAsed on totAL BeVerAGe AdVertisinG in MAGAZines tArGeted At A hisPAniC AudienCe.dAtA sourCe: kAntAr MediA, BrAnded entertAInMent report(netWork And CABLe tV nAtionAL,


Fruit Drinks 0%

Carbonated and Flavored Waters 4%Energy Drinks 4%

Fruit Juices 7%


Diet Carbonated So Drinks 11%

Sports Drinks 19%


Newspapers

t al ma cag vw wa wpap. t vw l

cl a cmpa vall ma v wpap cla

a hpac. Ac all pap, clg hpac , Csd

avm ma p % avm g

cag am g a. hpac pap ma p %

al mb pap am b acc % al mb

a am g . t w a w

m avl av hpac wpap a b

wpap aa a hpac wpap al. o

avm hpac wpap, % w

Csd g . llcal m b av m

avl ma c a hpac a vall ma.

4: mz ad Dcd td ac-ac dhpc C Pc t mz ad

Beverage Category

Number oAdvertisementsin All Magazines

% oAdvertisements

Directed at

Arican-Americanand HispanicAudiences

ndt Ctd s D 107 39%

nctd wt 209 2%

spt D 217 2%

t D 427 3%

t jc 502 1%

eg D 194 2%

Dt Ctd s D 92 7%

Ctd d d wt 200 1%

Total Number o NonalcoholicBeverage Advertisements 1,948

dAtA sourCe: kAntAr MediA, BrAnded entertAInMent report(netWork And CABLe tV nAtionAL,JAnuAry 2009AuGust 2010, CAteGory=hisPAniC MAGs)



52/104

: md npp ad

note: PerCentAGes Are BAsed on totAL BeVerAGe AdVertisinG in neWsPAPers MArketWide.dAtA sourCe: kAntAr MediA, BrAnded entertAInMent report(netWork And CABLe tV nAtionAL,

JAnuAry 2009AuGust 2010, CAteGory=neWsPAPers And hisPAniC nWsP)

Fruit Juices 6%

Other Beverages 8%



b: hpc npp ad

note: PerCentAGes Are BAsed on totAL BeVerAGe AdVertisinG in neWsPAPers MArketWide.dAtA sourCe: kAntAr MediA, BrAnded entertAInMent report(netWork And CABLe tV nAtionAL,

JAnuAry 2009AuGust 2010, CAteGory=neWsPAPers And hisPAniC nWsP)

Other Beverages 3%


Fruit Juices 8% Nondiet CarbonatedSo Drinks 86%

t ma g m glvl vw ma p b

a avg pg

ma ampl cmm p ma cabl lv, w

lv, a a a appa b m a plam

ac hpac a AcaAmca cm. i a, appa

6: B ad a npp, hpcnpp, d n-hpc npp

Number o Nonalcoholic Beverage

Advertisments

Beverage CategoryAll

Newspapers

% inHispanic

Newspapers

% inNon-HispanicNewspapers

ndt Ctd s D 475 86% 61%

nctd wt 67 3% 20%

spt D 17 0% 6%

t D 9 1% 2%

t jc 35 8% 3%

eg D 7 1% 1%

Dt Ctd s D 6 1% 1%

Ctd d d wt 15 0% 5%

Total Newspaper Advertisements 631

% o Total Newspaper Advertisements 56% 44%

dAtA sourCe: kAntAr MediA, BrAnded entertAInMent report(netWork And CABLe tV nAtionAL,JAnuAry 2009AuGust 2010, CAteGory=neWsPAPers And hisPAniC nWsP)



53/104

a ssB a m avl av lv a magaz a

wpap hpac a AcaAmca cm w cmpa

avg maw. i a g a m a glvl

vw a b aa pc b w pa v, a

aal v a a ampl w ba a cmpa

ma b agg ca ba p wa pacla

cm.

PositioningPg a pc ba pc cag a val

am a mag wa cmpa g ag ma

a wll lmal la a plc, magl plac m

cm, b g p a cmpv avaag. W a m,

ac pc ba a a q pg bjcv. i c, w

vw m ampl va pg ag pc

v gm.

CSDs

A Csd ma la, CcaCla a aall b p a

pmm ba ma. i c a, pg

a b callg b val Pp a mall ba, a cm

bcm l balal a vala Csd pc ba pc.

llwg a mla , l cl Csd w p a a

al lm Amca cm ll,103 b paagm

a w a ma a l u sa

g. t awa m aal Csd w a

b a a ma ma cm l al. t a

cm gwg cc ab wa p

b. Wl Csd av a cabl wll g paagm

, , Csd a bg pal p cmp

w gwg mb cal a alcc a av

a wll c ma.

A ampl c pg cag Csd ca b CcaCla

c mall, pcll pacagg a lm vg

z cal, a a cal ma

all pacag, vg mac, a a qpm.104 t

d Ppp sappl Gp bga cpa w labl a wll

cmpl mplma b . t w lablg wll av cal

c pacagg.105

A pg cag Csd maac wll b

c al, calc w, c a vaba

ba A, a l pa cm calcc

cc b al cm av m aal g

cm. i a aal, cal w, Csd

maac a mlag pc cl % aal lav



54/104

l acal lavg. i , CcaCla mla aa oag,

aa Appl, a aa Gap w % aal lav.106

Csd maac a al cagg cmp cca

a pag w lca. o ampl c

d Ppp pc , Mcdal l, wc av call

b clvl CcaCla l. CcaCla n Amca a al b

g w CcaCla l a p. t p a

pa b a c c, ablg cm lc m m a

ba wa, jc, a, a caba .107

Fruit Beverages

bvag a p cv m all g

cm: al b, cal ab, a ll ga

a. A ampl pg CcaCla Cmpa smpl

oag ba ag jc, wc a b p a

ba bca ma m jc cca.108

Va Cc, a p cc wa ba u sa, a

ampl al pg. Va Cc a b p a

al a b cg cc wa qal m

lcl a a p ma a m pam a

w baaa.109 t pg pa alcc, c a

p cm w a lg all b a

a.

Bottled Waters

Pg bl wa gm, l jc gm, c

all b, b cpl all w l w

cal. ampl, ma palg wa a pg m a a

al alav a, c m palg wa ba a

lwcal b ll am caba a a l a Csd.110

o ampl bl wa ba g all, lw cal

pg cl s dlg o eal, wc glg

w a m wa, c w

cal;111 a Glaca smaWa, wc a b p a

ba a mb p a al b g q, a

p wa pca pc.

o wa ba, c a CcaCla eva a j, a p a

pmm ba g p m a all b. eva

Jl Lv yg campag, ampl, c l

c a eva a b.112


cal bvag ma al p pc wca

all b. ul jc, ca aal

ca lm, c a vam a aa. A l



55/104

cmp bl wa cag, ma cal bvag

pc a lw cal.

o pg ag bg b w ma a

p pc a a lwc, gval pc cmpa

cal bvag, wc a aall pc g a

gm. ampl, Ba ba mla

lav a z a owalla pc, b a a % lw pc. t

pg mpa a cm c pg .

Sports Drinks

t p gm ma gg a cag

pg. ogall, p w p p

a a caba pal a cllg al.113 i c

a, gal p , PpC Gaa, a b p

a pmac m al114 w G s

l pc. Gaa a a w l pc ma

ba a m p a p pmac va

cmpa. i a pg p appal a lag

cm ba w m , Gaa al mla pc

cl gc c p hCs wa cm

cag lcac cm w.

Alg mla l, CcaCla Cmpa a c a l

Pwa pc a cl a zcal p al

cc w calc a caal cm. t allw

ba p l cv mag a Pwa j

al; a, Pwa a pc all cm w

a cc w al.115

Productt P mag ml pv a wa ba w

ag ag pcc cm. t c

p vw ampl pc, pc, plac, a pm ag.

Csd a c pc pla , a

a l a lag va z, lav, a pacag p. Alg

Csd ll ma ma, , c a jc,

cal bvag, a bl wa, a gca c. i

gal, a pacag b wa: a

bl ca, pw, a a bvag p.

t ma pla CcaCla Cmpa,

PpC, a d Ppp sappl Gp a pmal pbl

pcg bvag cca a l bl. t

bl a wa a al g cca, bl,

pacag, a b al pc. i a, cca

maac maag ba mag a aal pmal

, wa bl al lcal b a m lcal



56/104

mag . smlal, mall, pvalabl ba pc

pc cca a cac w p bl

bl mlv.

sm pla al ma pw , c a

PpC pw Gaa p a d Ppp sappl

pw yh. t pw mla ca all

g cp wa. t pw a pacag b bvag

cca pc a l va l w ca b

pca b cm.

t pc m p jc cca, wc a l

aa a w a a. t p

m va a pg mac w caba ll wa jc a

p. sp a jc cca, al pc b cca

maac, ma b l g a a b cl

cm. t a b ma b CcaCla

Cmpa, wc cl a ma % a ma;

PpC a ab % ma. sal m a ma p

a ma CcaCla Cmpa u.s. p.116

t a ma p pc avalabl g b lag

cal cca maac a mall, pvalabl ba. sm

a aal a/ aal ba, b a al ma gal

pcal ba. Alg CcaCla, PpC, a d Ppp sappl

pc ma u.s. ma, mpa cgz a pva

labl ba, l a ba a gc a c

ca, a gwg ppla cap pc. Accg

Ml, i g cm, pvalabl ag a m ma l.

i ac, pvalabl ba ga [ma] a al maj

gm. t l a cag pcg ag maj

ba pc, bgg pc w.117

Pvalabl pc a l a al ba am

.g., WalMa ba sam Cc w cmpa

ba am. t lag pvalabl ma a

C Cpa, naal Bvag Cpa, a Lag Bvag

Cmpa. s App a mma lg u.s. ba b

pc p la a lag

u.s. pvalabl pc.

PricePc va b gm ma a a

cm ca c m cm cbac. i ma

ca, pc c a Csd, cal bvag, a v m jc

a bl wa a c ca pca. A a l,

w cm a lg wa c bac, a a cmm

ag. Pccc cm a cagl m ll a



57/104

avaag c, al, a bl pca. i c, w l

a pcg ac va gm .

CSDs

rac cc b Ml val a c a mpa v Csd

cmp;118 pcall Csd ag cm, g

al/ w m cm. Csd a cabl l pv

a avalabl, c a cal bvag, a

m appalg ccc cm.

t ma ac cmplm b cmc a pblc al

ac a gg a ma ssB mwa pv

pc. A vw pc lac ac pc a

cmp ssB wl cl %% p a % ca

pc.119 A m c mlg pc a % ca

cmp p a % ca pc l w p

pc a pp ma a.120

Fruit Beverages

Pc v w jc gm a l cm

gavag wa jc l a % jc a pvalabl

jc l % jc. Jc a pvalabl % jc

a avag %% c w cmpa w ba %

jc g .

DollarsperGallon

(Est.)

Years

Fruit Juices

Juice Drinks

: jc d jc D Pc Cp

t pc v a al l cag cm bg

pa. i a Ml v, % p ca a av

a pcag amlz pacag jc , bca a

cap a glvg pacag.121

inCLudes AVerAGe PriCe or reriGerAted, BottLed, CAnned, AsePtiC, And roZen JuiCes And JuiCe drinksdAtA sourCe: MinteL/BAsed on inorMAtion resourCes, inC. inosCAn reVieWs



58/104

Bottled Waters

Accg Ml, m a p lc bl wa

ba pc. t pc v ma b a w c

a gall wa a pp $ p gall bw a ,

m $ p gall $ p gall .122 t

v pc a l ma cm wcg m ba

wa pc b la l CcaCla Cmpa a

PpC pvalabl bl wa. t l a ma pl bw

cm w a wllg pa a g pc pmm ba, c

a j a eva, a cm w a l wllg pa pvalabl

ba, lavg m ba w lw al.


cal bvag a pc g a ma.

Maac j pmm b g q, gqal

g b ag vam a mal a clam av b

cm. t pc pmm p a ba ap b w

cm a cal ag qc ma . t pmm

pcg acc a l gca al cl la w a,

a cm c bac pg c. Alg Ml

ca a al wll b v a, maac

ma pc lac pc m cag

pc cl lp v aal al.123

eg , l cal bvag, a al pc g

a . smlal, pmm pcg mp ca

ag b c cm a ma ac ppg m

g g . Accg a Ml v, al

cm w cl cm g l a

a pv.124

Places a l a va plac, clg pma, ma

mca, cvc , a wa clb. eac l

va w ga p cm w p ; wa

wc a l; a pacagg, pacag z, va,

a val pp.

spma maa a ma a al al.

spma c pvg a w aa ba a z, agg

m am ba, pva labl, glv ca a aml

pac. spma al appal a w ag cm, paclal

w gla l ppg.125

Ma mca, c a WalMa a tag, a a gwg c

al ca c cag a w va

pc. Wl lc, b z a ba, ma b m

lm a , pcall av lw pc baam

cmpa pma cvc . A m



59/104

pp mga wa p ppg a ma mca, vlm

al a c acpa .126

Cvc cap a gm pp a w

pcall p a pma ma mca . Cvc

ca cm w a lg a, a ppg;

w a lg a qc plm a m; a m

ql, bg a bvag mma cmp.

t pacagg a cvc pcall glv ca a

a pcll.

Wa clb ll a baal vlm all va.

Alg pcall ca a lm mb ba l l

bl pacag, bl ma ppla w cm, a a

c avg.

o l w ca b pca cl cl,

, a aa. daa m scl hal Plc

a Pacc s cc b u.s. C da Cl a

Pv CdC w a bw % a % ml cl a

g cl cv a pcag al, % % av

clv cac w cmpa, a % allw

cmpa av cl vg mac.127 i a, a

maj cl av clv mag agm w lcal

blg cmpa alm pc g cl, pc

ml cl, a pc lma cl;128 lcal blg

cmpa, a a p/cca maac, a

pbl cacg w cl/ . t

clv mag al pcall la p a a cl clv

g ma a cmpa ba cl vg mac,

cba, a cp a pg v cag pam

cl.129

i CcaCla Cmpa, PpC, a d Ppp sappl

a agm w Allac a hal Ga mpv

al qal avalabl cl cl. Accg

bvag gl, l wa, % jc, a ml ca b l

lma a ml cl. Wa, % jc, ml, a

w p cal p g c ca b l g cl.130

t Allac a hal Ga a Amca Bvag

Aca av pc lam mplma

gl. Accg la am, pbl ,

llcal pm u.s. lma, ml, a g

cl av ca %.131

Bgg Gap, a ac pgam b rb W J

oao, epeely aalyze complace w e beverage gele,

lag a p Apl . t aal a avalabl

ml a g cl gcal cl bw



60/104

a cl a. y, l a al ml a

g cl u sa a cl cv b

gl cl a.132

A cal b , pcall Csd, lag

, cllg/v, b, p ac. t

agm a all call pg g a gaa a l

cac ba wll b l va a p.

Cl, CcaCla Cmpa ma cal, accg

appmal % all a bvag al.133

all, al a pa ac va p aa.

Qcv aa, c a da Q, acc lag a

aa m % al aa l Q

. aml aa, c a l, acc c lag

a ma, llw b caal aa c a rb ta,

g aa c a M sa, a a caal

aa c a Paa Ba. i ac aa p, Csd

ma al, mag p ab % al al

ac gm g .

: tp ncc B tp b r s (Q4 00)

Total Number o Beverage Menu Items:,

TotalSample

In Quick-Service

RestaurantsIn Family/Midscale

In CasualDining

In Fine/Upscale/Gourmet

In FastCasual

Share o Total Beverage Items Ofered 100% 29% 24% 21% 15% 11%

Beverage Type

sd 32% 28% 35% 32% 38% 31%

T 13% 11% 13% 14% 17% 11%jc 8% 5% 9% 9% 13% 9%

C 7% 7% 7% 5% 8% 7%

ld 5% 4% 6% 8% 3% 5%

st 5% 9% 1% 3% 0% 11%

s 4% 4% 10% 3% 0% 1%

m 3% 3% 6% 3% 1% 4%

wt 3% 4% 3% 4% 2% 4%

t D 2% 2% 2% 2% 1% 2%

ltt 2% 3% 0% 1% 1% 3%

Cppcc 2% 1% 1% 2% 3% 2%

ht Cct/Cc 1% 1% 2% 1% 1% 2%ep 1% 1% 0% 2% 4% 1%

ot z bg 1% 3% 0% 1% 0% 0%

these dAtA ALso inCLude Menu iteMs roM sMoothie shoPs And CoeehousesdAtA sourCe: MinteL Menu insiGhts



61/104

PromotionPm a gca ac all pla .

d lag mb pc avalabl, ac pc ba

m av ma ac cm a v al. M

pm va b cmpa z a pma ag ma, b m

m ql m pm

a lv a p a, i, pp, c/

pmal acv a pc placm.

tlv, cal ma, a i pla a gca l

pmal . A Ag Ml p

m gca m mag:J empa all b, c a aa a vamJ P clJ u macl magJ u lv a gag cm l cmm

o acv, c a c a pm,

ca al vlm a p cm a awa pcc

ba. Ma lag pla al clb m

a pp ag pcc cm p a

cm wll aca ba w pcc .

Promotional Tactics Used by Segment

eac gm a m pmal

acv cv w ag ma. ol blw a m

cmm pmal p b b ma gm.

CsD

tlv avg a cal ma ma pmal acc

b lag Csd ba a wll a c a mgg ba.134

B

M avg campag % jc a a caal

appac, cg cm b pc. sc

ag ma pc b al, paclal pa,

mag a cmml lv a p ma c a

ag gp.135

Bd w

Bl wa a a v ac a maac a

va ag pm pc, c a pp g

pl pa a v, ca mag w cmpa l

pc w a ca , pc gvawa, pap w

aa ca, a l av.136

c B

cal bvag cmpa a paclal p avg

a pmal pp abl ba, ca awa, a



62/104

v pca amg cm. Maj cmp a mb

pmal cq, c a lv, i, a pp,

bl awa pc.137

eg ma aal m, c a

lcal p am a ba pp, cc w cm

a pal lvl. Alg m av b pv cv,

aal ma a ll , pcall b ma la, pm

ba a ca awa. taal ma m cl

a cmba lv a, p i a, bllba, a

pm a a ajc pp. all, all maj ba

acb, tw, blg, a l magaz ac

cm a p m p p w pc a v.138

Promotional Mix Types

A abv, ac gm a m pmal p ac

cm. ol blw a m c ampl w

lzg pmal m c a lv, p,

i, pp, a c/ pmal acv.

t

t gal b lv cc

w cm b vg a mal p. t p a w

cm c ba, wll call m m a

aw lv. Ma m c a l m val

mag a vbal alg cc w vw, b allwg

vw p mag wa ca pall la .

t lv a b ag wa pcc gm

ma; blw a j a w c ampl lv cmmcal

va pc ma:

Cmmcal am: D Dc m 139

t: AcaAmca mm ag

m: Mm ca b cc ab al a ll b cl. B vg

a lga, lg, a cag cm a mall p

wa g m wa.

Cmmcal am: Cc-C h :0 .. 140

t: t a cllg

m: t a a am qc cal g g wa

a w la a am. h awa b a C

bg p. t a lg mp a app a

cmmcal, wc w agl op happ.

Cmmcal am: oc sp C 141

t: yg al

m: tg m alg, w cab gw al ab

cal apc jc wl al awg a c cmpa



63/104

g b ag a pc a g g

cmpa aal g .

Cmmcal am:jc jc B Dp 142, 143

t: M mall cl

m: t a cap a mal mm bw m a cl.

A vcv pla ba vlpm pc a w dhA a

g pc a blg blc ba vlpm.

Cmmcal am: -h e 144

t: Al w w a fc

m: t a p g a a l a cmm,

laabl pblm: gg wa a a w. t a

glg agbl b g b a lag gm ppla.

i a pvg a mal p, ma lv a am

c vw v ba wb cal wg . i

cmmcal ccl g , p a aal pp

gag cm a lg p m a cmmcal

allw a, pg wa vw wb

cal ma , al pv a pp cmpa ga

ma ab vw. t a ag cm ag

w ala p a gca am m i.

Blw a a w ampl c a:

Pp r Pc cc t a a cac ba w val

gapc g vw a a a, Wa ca

ab? t llw b ma ab Pp r Pgam

a w g m ma va i.145

tpc jc rd (Pp) t cmmcal a ppl gg

aa ma pc a ca ag jc, bca

a $ jc wa . t cmmcal b cagg

cm m wa tpcaa wb.146

gc vw t campag, ag clb sv

na a C C Jac, v vw v pc

acb pag ca w lav Glaca VamWa.147

P

P a lm m pmal campag, c

ba mag p va pmal m, c a lv,

i, cal ma. tpcal p ma cl ma

SoftDrinkIndustryMarketing_11

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