INDUSTRY: FOOD & BEVERAGE Amalgamated Beverage Industries - Invensys
Alternative Beverage Industry
description
Transcript of Alternative Beverage Industry
Alternative Beverage
Industry
Kyle HollowayJessica JonesScott Shields
Devin Stewart
Outline of Presentation Identification- Jessica Jones Analysis –Scott Shields Financials – Kyle Holloway Concerns/Recommendations – Devin
Stewart
Alternative Beverage Industry The alternative beverage industry
saw rapid growth in the mid-2000s Competition is based on
differentiation The largest sellers of alternative
beverages:Coca-Cola, PepsiCo., Red Bull GmbH,
and Monster Beverage Corporation
Current State of the Industry Hit hard by the recent economic recession. The alternative beverage industry is
projected to grow at a rate of 5.88% on average.
Global companies are combatting the decline of soft drinks sales through alternative beverages.
Expansion and the Focus Companies expanded the alternative
beverage market through:Blue ocean strategiesExploiting international marketsCapitalizing on consumer trends
Innovation and Consumer Trends
An important factor for success in the alternative beverage industry is innovation.
Success based on capitalizing on consumer trends.
Beverage Industry Market Share (2009)
48.20%
29.20%
12.40%
4.00%
3.10%
1.60% 1.20%
0.30%
Carbonated soft drinksBottled WaterFruit BeveragesSports DrinksReady-to-Drink TeaFlavored or Enhanced WaterEnergy DrinksReady-to-Drink Coffee
Competitive Forces and Pressures The strongest
competitive force is rivalry among competing sellers.
The weakest force is competitive pressures from buyer bargaining power.
Energy Drink Industry by Market Share (2012)
Red Bull, 39.80%
Monster, Monster Energy, and Java Monster, 29.90%
Rockstar and Rockstar Recovery; 9.20%
Nos; 3.50%Amp; 2.10% Full Throttle; 1.40%
Sports Drink Market Share (2012)
Gatorade Perform- 50%
Gatorade- 10.6%
Gatorade G2- 10.3%
Gatorade Cool Blue- 1.4%
Gatorade Frost- 1.4%
G2- 1.2%
Powerade Ion4- 16.2%
Powerade Zero- 4.5%
Powerade- 1.0%
Powerade Zero Ion4- .80%
Profit Margin
2012 2011 20100
5
10
15
20
25
30
35
40
45
PepsiCoca-ColaMonster
Return on Equity
2012 2011 20100
10
20
30
40
50
60
PepsiCoca-ColaMonster
Financial Structure
2012 2011 20100
0.2
0.4
0.6
0.8
1
1.2
1.4
PepsiCoca-ColaMonster
*Based off Debt-to-Equity ratio
Liquidity
2012 2011 20100
1
2
3
4
5
6
PepsiCoca-ColaMonster
*Based off Current Ratio
Inventory Turnover
2012 2011 20100
1
2
3
4
5
6
7
8
9
10
PepsiCoca-ColaMonster
Earnings Per Share
2012 2011 2010 $-
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
$4.50
PepsiCoca-ColaMonster
Concerns… Legal factors
Changing consumer demand
Rival firms
Distribution/suppliers
Innovation
Discretionary Income
Recommendations… Distribution/Suppliers
Strategic Alliances
Supply Chain
Management
Recommendations… Innovation
Invest in R&D
Invest in Marketing
Recommendations… Discretionary
IncomeIncrease price
competition
Product
Diversification
Thank you for your attention
Are there any questions…