Beverage Industry

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Global - Beverages 0199 - 2014 - 2010

© Datamonitor. This profile is a licensed product and is not to be photocopied

INDUSTRY PROFILE

Global Beverages

Reference Code: 0199-2014

Publication Date: May 2011

EXECUTIVE SUMMARY



EXECUTIVE SUMMARY

Market value

The global beverages industry grew by 15% in 2010 to reach a value of $1,749,350.9 million.

Market value forecast

In 2015, the global beverages industry is forecast to have a value of $1,909,008.8 million, an increase of 9.1% since 2010.

Market volume

The global beverages industry grew by 13% in 2010 to reach a volume of 245,177.3 million Kg.

Market volume forecast

In 2015, the global beverages industry is forecast to have a volume of 262,286.5 million Kg, an increase of 7% since 2010.

Market segmentation I

Beer, cider & FABs is the largest segment of the global beverages industry, accounting for 33.5% of the industry's total value.

Market segmentation II

Europe accounts for 46% of the global beverages industry value.

Market share

The Coca-Cola Company is the leading player in the global beverages industry, generating a 16.3% share of the industry's value.

Market rivalry

The global beverage industry is highly fragmented. The presence of leading incumbents and large numbers of market players boosts rivalry.

CONTENTS



TABLE OF CONTENTS

EXECUTIVE SUMMARY 2

MARKET OVERVIEW 7

Market definition 7 Research highlights 8 Market analysis 9

MARKET VALUE 10

MARKET VOLUME 11

MARKET SEGMENTATION I 12

MARKET SEGMENTATION II 13

MARKET SHARE 14

FIVE FORCES ANALYSIS 15

Summary 15 Buyer power 16 Supplier power 17 New entrants 18 Substitutes 20 Rivalry 21

LEADING COMPANIES 22

Nestlé SA 22 PepsiCo, Inc. 26 The Coca-Cola Company 30 Anheuser-Busch InBev 35

MARKET FORECASTS 39

Market value forecast 39 Market volume forecast 40

APPENDIX 41

Methodology 41 Industry associations 42

CONTENTS



Related Datamonitor research 42 Disclaimer 43

ABOUT DATAMONITOR 44

Premium Reports 44 Summary Reports 44 Datamonitor consulting 44

CONTENTS



LIST OF TABLES Table 1: Global beverages industry value: $ million, 2006–10 10

Table 2: Global beverages industry volume: million Kg, 2006–10 11

Table 3: Global beverages industry segmentation I:% share, by value, 2010 12

Table 4: Global beverages industry segmentation II: % share, by value, 2010 13

Table 5: Global beverages industry share: % share, by value, 2010 14

Table 6: Nestlé SA: key facts 22

Table 7: Nestlé SA: key financials ($) 24

Table 8: Nestlé SA: key financials (CHF) 24

Table 9: Nestlé SA: key financial ratios 24

Table 10: PepsiCo, Inc.: key facts 26

Table 11: PepsiCo, Inc.: key financials ($) 27

Table 12: PepsiCo, Inc.: key financial ratios 28

Table 13: The Coca-Cola Company: key facts 30

Table 14: The Coca-Cola Company: key financials ($) 32

Table 15: The Coca-Cola Company: key financial ratios 33

Table 16: Anheuser-Busch InBev: key facts 35

Table 17: Anheuser-Busch InBev: key financials ($) 36

Table 18: Anheuser-Busch InBev: key financials (€) 37

Table 19: Anheuser-Busch InBev: key financial ratios 37

Table 20: Global beverages industry value forecast: $ million, 2010–15 39

Table 21: Global beverages industry volume forecast: million Kg, 2010–15 40

CONTENTS



LIST OF FIGURES Figure 1: Global beverages industry value: $ million, 2006–10 10

Figure 2: Global beverages industry volume: million Kg, 2006–10 11

Figure 3: Global beverages industry segmentation I:% share, by value, 2010 12

Figure 4: Global beverages industry segmentation II: % share, by value, 2010 13

Figure 5: Global beverages industry share: % share, by value, 2010 14

Figure 6: Forces driving competition in the global beverages industry, 2010 15

Figure 7: Drivers of buyer power in the global beverages industry, 2010 16

Figure 8: Drivers of supplier power in the global beverages industry, 2010 17

Figure 9: Factors influencing the likelihood of new entrants in the global beverages industry, 2010 18

Figure 10: Factors influencing the threat of substitutes in the global beverages industry, 2010 20

Figure 11: Drivers of degree of rivalry in the global beverages industry, 2010 21

Figure 12: Nestlé SA: revenues & profitability 25

Figure 13: Nestlé SA: assets & liabilities 25

Figure 14: PepsiCo, Inc.: revenues & profitability 28

Figure 15: PepsiCo, Inc.: assets & liabilities 29

Figure 16: The Coca-Cola Company: revenues & profitability 33

Figure 17: The Coca-Cola Company: assets & liabilities 34

Figure 18: Anheuser-Busch InBev: revenues & profitability 38

Figure 19: Anheuser-Busch InBev: assets & liabilities 38

Figure 20: Global beverages industry value forecast: $ million, 2010–15 39

Figure 21: Global beverages industry volume forecast: million Kg, 2010–15 40

MARKET OVERVIEW



MARKET OVERVIEW

Market definition

The global beverages industry consists of the total revenues generated through the sale of soft drinks, beers, ciders, flavored alcoholic beverages (FABs), spirits and wines, valued at retail selling price with any currency conversions calculated using constant 2010 annual average exchange rates.

For the purposes of this report, the global market consists of North America, South America, Western Europe, Eastern Europe, MEA, and Asia-Pacific.

North America consists of Canada, Mexico, and the United States.

South America comprises Argentina, Brazil, Chile, Colombia, and Venezuela.

Western Europe comprises Belgium, Denmark, France, Germany, Greece, Italy, the Netherlands, Norway, Spain, Sweden, Switzerland, Turkey, and the United Kingdom.

Eastern Europe comprises the Czech Republic, Hungary, Poland, Romania, Russia, and Ukraine.

Asia-Pacific comprises Australia, China, India, Indonesia, Japan, New Zealand, Singapore, South Korea, Taiwan, and Thailand.

Middle East-Africa (MEA) comprises Egypt, Israel, Nigeria, Saudi Arabia, South Africa, and United Arab Emirates.

MARKET OVERVIEW



Research highlights

The global beverages industry had total revenues of $1,749.4 billion in 2010, representing a compound annual growth rate (CAGR) of 1.9% for the period spanning 2006-2010.

Industry consumption volumes increased with a CAGR of 2.2% between 2006 and 2010, to reach a total of 245.2 billion Kg in 2010.

The performance of the industry is forecast to decelerate, with an anticipated CAGR of 1.8% for the five-year period 2010-2015, which is expected to drive the industry to a value of $1,909 billion by the end of 2015.

MARKET OVERVIEW



Market analysis

The global beverages industry is forecasted to experience decelerated revenue and volumes growth during 2010-2015.

The global beverages industry had total revenues of $1,749.4 billion in 2010, representing a compound annual growth rate (CAGR) of 1.9% for the period spanning 2006-2010. In comparison, the European industry declined with a compound annual rate of change (CARC) of less than 0.1%, and the Asia-Pacific industry increased with a CAGR of 6.1%, over the same period, to reach respective values of $805.5 billion and $400.7 billion in 2010.

Industry consumption volumes increased with a CAGR of 2.2% between 2006 and 2010, to reach a total of 245.2 billion Kg in 2010. The industry's volume is expected to rise to 262.3 billion Kg by the end of 2015, representing a CAGR of 1.4% for the 2010-2015 period.

The beer, cider & flavored alcoholic beverages segment was the industry's most lucrative in 2010, with total revenue of $585.3 billion, equivalent to 33.5% of the industry's overall value. The soft drinks segment contributed revenue of $559.8 billion in 2010, equating to 32% of the industry's aggregate value.

The performance of the industry is forecast to decelerate, with an anticipated CAGR of 1.8% for the five-year period 2010-2015, which is expected to drive the industry to a value of $1,909 billion by the end of 2015. Comparatively, the European and Asia-Pacific industries will grow with CAGRs of 0.2% and 4.3% respectively, over the same period, to reach respective values of $814.4 billion and $493.8 billion in 2015.

MARKET VALUE



MARKET VALUE

The global beverages industry grew by 15% in 2010 to reach a value of $1,749,350.9 million.

The compound annual growth rate of the industry in the period 2006–10 was 1.9%.

Table 1: Global beverages industry value: $ million, 2006–10 Year $ million € million % Growth2006 1,623,971.9 1,222,971.7 2007 1,762,951.6 1,327,633.8 8.6%2008 1,766,337.6 1,330,183.6 0.2%2009 1,521,441.6 1,145,758.8 (13.9%)2010 1,749,350.9 1,317,391.4 15.0%

CAGR: 2006–10 1.9%

Source: Datamonitor D A T A M O N I T O R

Figure 1: Global beverages industry value: $ million, 2006–10


MARKET VOLUME



MARKET VOLUME

The global beverages industry grew by 13% in 2010 to reach a volume of 245,177.3 million Kg.

The compound annual growth rate of the industry in the period 2006–10 was 2.2%.

Table 2: Global beverages industry volume: million Kg, 2006–10 Year million Kg % Growth2006 224,702.92007 244,578.2 8.8%2008 248,910.7 1.8%2009 216,922.4 (12.9%)2010 245,177.3 13.0%

CAGR: 2006–10 2.2%


Figure 2: Global beverages industry volume: million Kg, 2006–10


MARKET SEGMENTATION I



MARKET SEGMENTATION I

Beer, cider & FABs is the largest segment of the global beverages industry, accounting for 33.5% of the industry's total value.

The soft drinks segment accounts for a further 32% of the industry.

Table 3: Global beverages industry segmentation I:% share, by value, 2010 Category % ShareBeer, cider & FABs 33.5%Soft drinks 32.0%Wine 18.0%Spirits 16.5%

Total 100%


Figure 3: Global beverages industry segmentation I:% share, by value, 2010


MARKET SEGMENTATION II



MARKET SEGMENTATION II

Europe accounts for 46% of the global beverages industry value.

Americas accounts for a further 27.1% of the global industry.

Table 4: Global beverages industry segmentation II: % share, by value, 2010 Category % ShareEurope 46.0%Americas 27.1%Asia-Pacific 22.9%Rest of the World 3.9%

Total 100%


Figure 4: Global beverages industry segmentation II: % share, by value, 2010


MARKET SHARE



MARKET SHARE

The Coca-Cola Company is the leading player in the global beverages industry, generating a 16.3% share of the industry's value.

PepsiCo, Inc. accounts for a further 9.2% of the industry.

Table 5: Global beverages industry share: % share, by value, 2010 Company % ShareCoca-Cola Company, The 16.3%PepsiCo, Inc. 9.2%Anheuser-Busch InBev 5.0%Nestle S.A. 3.6%Other 65.9%

Total 100%


Figure 5: Global beverages industry share: % share, by value, 2010


FIVE FORCES ANALYSIS




The beverages market will be analyzed taking beverages manufacturers as players. The key buyers will be taken as retailers and on-trade companies, and raw material producers, packaging providers as the key suppliers.

Summary

Figure 6: Forces driving competition in the global beverages industry, 2010


The global beverage industry is highly fragmented. The presence of leading incumbents and large numbers of market players boosts rivalry.

The global beverage industry is characterized by the presence of large companies such as PepsiCo and Coca-Cola. However the market is still fragmented. There are a large number of buyers present, who have a large amount of financial muscle with enhances their power somewhat. Various raw materials are needed within this industry, with suppliers able to provide to a wide spectrum of sectors. Entrance to the industry could prove problematic when the large scale of leading incumbents and brand loyalty is taken into account, however substitutes are cheaper and just as popular with consumers, providing new entrants with an avenue to entrance. All of these factors increase rivalry between players.




Buyer power

Figure 7: Drivers of buyer power in the global beverages industry, 2010


Typical buyers within this industry are large retailers who hold a great amount of financial muscle which allows them to make large purchases and enter into long term contracts with market players. The loss of one retailer could significantly impact upon a manufacturer’s revenue and switching costs are usually low. This boosts buyer power somewhat. Buyers must meet consumer end-user demand, meaning they must stock popular products, which reduces their power somewhat. Furthermore, beverage manufacturers usually differentiate their products, meaning they can occupy different areas of the beverage industry at the same time, reducing their reliance on revenues from one product. As retailers operate within a distinct business structure, there is a reduced likelihood of them integrating backwards, however certain brewers have integrated forwards by operating chains of pubs or other outlets. This further reduces buyer power as brewers can then sell directly to consumers. Overall, buyer power is moderate.




Supplier power

Figure 8: Drivers of supplier power in the global beverages industry, 2010


The production of beverages requires an array of raw materials and processes, depending on the beverage. Wine and spirit distillery requires raw materials such as cereal grains and grapes whilst beer brewing requires malted grain and hops. The manufacture of soft drinks requires natural and synthetic sweeteners. Thus the range of suppliers used in this industry is varied. However, the raw materials required are highly specific and so market players are reliant on suppliers. On the other hand, these materials are highly undifferentiated, meaning that players can choose alternative suppliers when it suits them. Some beverage producers have integrated backwards into producing their own raw materials, negating the need for suppliers. Alternatively, suppliers can provide their products to a number of markets, for example barley can be sold for animal feed. Furthermore, suppliers can integrate forwards into beverage production, with boosts supplier power. Overall, supplier power is moderate.




New entrants

Figure 9: Factors influencing the likelihood of new entrants in the global beverages industry,

2010


Entrance to this industry can be achieved by starting up a new company, an existing company diversifying operations or by the acquisition of an existing company. There is growing opportunity to enter the industry on a small scale by occupying a niche. There has been increased demand for organic products, including organic wines, spirits and beers. These specialty products can often be sold at a higher price. In order to compete with leading incumbents, new entrants must operate on a large scale. This requires significant capital outlay, which poses a barrier to entry for some. Furthermore, leading incumbents have strong brands already present within the industry. Brand loyalty is key in this industry and can therefore provide increased competition. New entrants need to access distribution channels, such as retailers. This can prove problematic as retailers are likely to stock brands popular with consumers, thus may be less willing to give any shelf space to new products until they are well established. Since the economic downturn, manufacturers have sought cost-effective packaging, which also helps differentiate products. There has been expansion in the use of newer substrates (such as RPET, PLA and other biodegradable plastics, barrier films and pouches). Innovative packaging shapes and designs are aimed at specific target consumers. Value added functional features have been introduced (i.e. re-closable can ends and pouches designed for vending applications), which are used to attract more customers.




Most countries operate stringent regulations regarding beverage production, in particular that of alcoholic beverages which coupled with moderate industry growth over recent years could prove off-putting to new entrants. Overall there is a moderate threat of new entrants to this industry.




Substitutes

Figure 10: Factors influencing the threat of substitutes in the global beverages industry, 2010


The main substitutes to soft drinks and alcoholic beverages are other beverages such as tea, coffee or milk. Switching costs for retailers are not high, meaning they can stock these products which are also popular with consumers and therefore may prove advantageous for retailers in terms of cost. Some of the leading players within this sector have diversified operations, for example Nestle also produces soft drinks as well as coffee, which reduces the threat posed by substitutes. These substitutes are often cheaper, as beverage prices tend to be scaled with their alcohol concentration. It is difficult to define the benefits of alternatives as it is simply down to the personal taste of the end-user. Overall, there is a moderate threat from substitutes.




Rivalry

Figure 11: Drivers of degree of rivalry in the global beverages industry, 2010


The global beverage industry is fragmented with leading incumbents such as Coca-Cola, Pepsi Co, Nestle and Anheuser Busch holding 35.1% of the total industry value. The large number of industry players serves to increase rivalry. Products are easily differentiated, with brand loyalty having a key influence. Furthermore, leading incumbents operate in a range of sectors meaning they are less reliant on beverage revenues. However retailers have a large number of brands and beverages to choose from, with relatively low switching costs, meaning consumer demand takes providence. This boosts rivalry further. As leading incumbents operate in a wide range of sectors, they must operate large plants. This means that there are high exit costs implied with the divestment of specialized assets a necessity, increasing rivalry further. Moderate industry growth over recent years does little to reduce the level of rivalry, however developing markets in the middle east provide market players with viable expansion opportunities. Overall, there is a moderate degree of rivalry in this industry.

LEADING COMPANIES



LEADING COMPANIES

Nestlé SA

Table 6: Nestlé SA: key facts Head office: Avenue Nestle 55, 1800 Vevey, CHE Telephone: 41 21 924 2111 Fax: 41 21 924 4800 Website: www.nestle.com Financial year-end: December Ticker: NESN Stock exchange: Six Swiss Source: company website D A T A M O N I T O R

Nestle is the largest food and beverage company in the world. The company's products include beverages, milk based products, ice creams, prepared dishes, and pharmaceutical products. Nestle operates in Europe, the Americas, Asia and Africa.

Nestle's primary operating segments are divided into three geographic zones and four globally managed businesses. The three geographic zones are Zone Europe, Zone Americas, and Zone Asia, Oceania and Africa. However, the company's four globally managed businesses include Nestle Waters, Nestle Nutrition, Other Food and Beverages, and Pharma.

The Nestle Waters produces and markets bottled water under Pure Life, Aquarel, Acqua Panna, Vittel, and Vera brand names among others.

The Nestle nutrition business comprises four sub-business divisions: infant nutrition, healthcare nutrition, performance nutrition, and weight management. The key products in the infant sub division include cereals, meals and drinks for babies and infants, which the company markets under Nestum, Mucilon, Cerelac, and Gerber brand names. The healthcare sub division primarily offers nutritionally enriched food products and drinks under Nutren, Clinutren, Boost, Peptamen and Modulen brand names. The performance nutrition division provides sports nutrition products under PowerBar and Musashi brand names. Jenny Craig is a weight management company offering consumers a range of branded nutritional products and services in the US, Canada, Australia and New Zealand.

Nestle also operates through six divisions that are organized along product groups. These include: beverage; milk products, nutrition and ice cream; prepared dishes and cooking aids; confectionery; pet care products; and pharmaceutical products.

LEADING COMPANIES



The key products of the beverage division include coffee, chocolate-based and malted drinks, bottled water, and fruit juices. Its key coffee product brands include Nescafe, Nespresso, Taster's Choice, Ricore, Ricoffy, Bonka, Zoégas, and Loumidis. Nescafe, the flagship soluble coffee product of this division, is one of the leading brands in the world. The company's coffee range also includes Nespresso (espresso coffee in capsules). Nestle also produces chocolate-based and malted drinks. Its leading brands include Nesquik, Milo and Nescau. Nestle Pure Life, under the Nestle Waters segment, is the biggest water brand in the world and is present in both emerging markets and North America. Nestle also produces fruit juices under the brand names Juicy Juice (formerly known as Libby's).

The prepared dishes and cooking aids division includes frozen and chilled, culinary and other businesses. Its popular brands include Hot Packets, Stouffer's, Lean Cuisine, Nestle Bake It, and Torchin. This division also includes the breakfast cereals business of Nestle that produces cereal and performance bars and cereals catering to a wide range of age groups.

The milk products, nutrition and ice cream division includes three main businesses. The milk products division produces powdered milk, yoghurts and desserts among others. Its popular brands include Coffee-Mate, Nido, Everyday, and La Laitière.

The ice cream business division offers products such as ice cream tubs, waffle cones, and ice cream bars. The company key includes brands in this segment include Haagen-Dazs, La Cremeria, Movenpick, Extreme, Dibs, Dreyer's Edy's, and Drumstick.

The confectionery division mainly primarily offers chocolates and chocolate based candies. The segment's products are offered under Aero, Butterfinger, Cailler, Crunch, Kit Kat, Orion, and Smarties brand names.

The pet care products division offers food products for cats and dogs. The company offers these products under Purina, Friskies, Fancy Feast, Alpo, Gourmet, Mon Petit, Felix, Dog Chow, Cat Chow, Pro Plan, Purina One, Beneful, and Tidy Cats brand names.

The pharmaceutical products division of Nestle includes the joint-ventures with pharmaceutical and cosmetic companies such as L'Oréal, Galderma and Laboratories Inneov.

Key Metrics

The company recorded revenues of $103,151 million in the fiscal year ending December 2009, a decrease of 2.1% compared to fiscal 2008. Its net income was $11,303 million in fiscal 2009, compared to a net income of $18,260 million in the preceding year.

LEADING COMPANIES



Table 7: Nestlé SA: key financials ($) $ million 2005 2006 2007 2008 2009Revenues 87,332.6 94,370.8 103,087.3 105,345.5 103,150.5Net income (loss) 8,246.8 8,815.2 10,206.9 18,260.2 11,303.4Total assets 98,454.0 97,578.9 110,572.1 101,805.8 106,311.6Total liabilities 47,031.1 46,924.7 58,070.0 49,169.5 54,907.0Employees 250,000 265,000 276,000 283,000 278,000 Source: company filings D A T A M O N I T O R

Table 8: Nestlé SA: key financials (CHF) CHF million 2005 2006 2007 2008 2009Revenues 91,115.0 98,458.0 107,552.0 109,908.0 107,618.0Net income (loss) 8,604.0 9,197.0 10,649.0 19,051.0 11,793.0Total assets 102,718.0 101,805.0 115,361.0 106,215.0 110,916.0Total liabilities 49,068.0 48,957.0 60,585.0 51,299.0 57,285.0 Source: company filings D A T A M O N I T O R

Table 9: Nestlé SA: key financial ratios Ratio 2005 2006 2007 2008 2009Profit margin 9.4% 9.3% 9.9% 17.3% 11.0%Revenue growth 5.0% 8.1% 9.2% 2.2% (2.1%)Asset growth 17.9% (0.9%) 13.3% (7.9%) 4.4%Liabilities growth 4.8% (0.2%) 23.8% (15.3%) 11.7%Debt/asset ratio 47.8% 48.1% 52.5% 48.3% 51.6%Return on assets 9.1% 9.0% 9.8% 17.2% 10.9%Revenue per employee $349,330 $356,116 $373,505 $372,246 $371,045Profit per employee $32,987 $33,265 $36,982 $64,524 $40,660 Source: company filings D A T A M O N I T O R

LEADING COMPANIES



Figure 12: Nestlé SA: revenues & profitability

Source: company filings D A T A M O N I T O R

Figure 13: Nestlé SA: assets & liabilities


LEADING COMPANIES



PepsiCo, Inc.

Table 10: PepsiCo, Inc.: key facts Head office: PepsiCo, Inc., 700 Anderson Hill Road, Purchase, New York 10577,

USA Telephone: 1 914 253 2000 Fax: 1 914 253 2070 Website: www.pepsico.com Financial year-end: December Ticker: PEP Stock exchange: New York Source: company website D A T A M O N I T O R

PepsiCo is a global snack and beverage company. The company manufactures, markets, and sells a variety of salty, sweet and grain-based snacks; carbonated and non-carbonated beverages; and foods. PepsiCo operates in over 200 countries and has large scale operations in North America (Canada and the US), Mexico and the UK.

PepsiCo operates through three business units: PepsiCo Americas Foods (PAF), PepsiCo Americas Beverages (PAB), and PepsiCo International (PI). The company's three business units are further divided into six reportable segments: FLNA, QFNA, LAF, PAB, Europe, and Asia, Middle East and Africa (AMEA). The first three segments along with the Mexican businesses Sabritas and Gamesa comprise PAF.

FLNA markets and distributes branded snacks. FLNA uses its own as well as third party manufacturing facilities to produce its snacks. These snacks include Lay's potato chips, Doritos tortilla chips, Tostitos tortilla chips, Cheetos cheese flavored snacks, Fritos corn chips, branded dips, Ruffles potato chips, Quaker Chewy granola bars and Sun Chips multigrain snacks. FLNA branded products are sold to independent distributors and retailers. Furthermore, FLNA owns or leases approximately 40 food manufacturing and processing plants and approximately 1,830 warehouses, distribution centers and offices.

QFNA manufactures, markets, and sells cereals, rice, pasta and other branded products. QFNA's products include Quaker oatmeal, Aunt Jemima mixes and syrups, Cap'n Crunch cereal, Quaker grits, Life cereal, RiceARoni, Pasta Roni and Near East side dishes. The company sells all these products to independent distributors and retailers. QFNA utilizes approximately 25 manufacturing plants and production processing facilities and distribution centers in North America.

LEADING COMPANIES



LAF markets and sells salty and sweet snacks, which includes brands such as Gamesa, Doritos, Cheetos, Ruffles, Sabritas and Lay's in Brazil, Argentina, Colombia, Peru and Venezuela. It owns or leases approximately 50 food manufacturing and processing plants and approximately 640 warehouses, distribution centers and offices.

The PAB business division sells beverage concentrates, fountain syrups and finished goods under various beverage brands including Pepsi, Mountain Dew, Gatorade, Tropicana Pure Premium, Lipton, Sierra Mist, Tropicana juice drinks, Naked juice, Propel, Dole and SoBe Lifewater. PAB also manufactures or uses contract manufacturers to market and sell ready-to-drink tea, coffee and water products through joint ventures with Unilever (under the Lipton brand name) and Starbucks. In addition, the business division has licensed the Aquafina water brand to its bottlers.

PAB owns or leases approximately 20 plants and production processing facilities and approximately 65 warehouses, distribution centers and offices. In addition, the company has an ownership interest in approximately 80 bottling plants. The company's contract manufacturers or co-packers also own or lease approximately 55 plants and production processing facilities and approximately 50 warehouses and distribution centers.

Key Metrics

The company recorded revenues of $57,838 million in the fiscal year ending December 2010, an increase of 33.8% compared to fiscal 2009. Its net income was $6,320 million in fiscal 2010, compared to a net income of $5,946 million in the preceding year.

Table 11: PepsiCo, Inc.: key financials ($) $ million 2006 2007 2008 2009 2010Revenues 35,137.0 39,474.0 43,251.0 43,232.0 57,838.0Net income (loss) 5,642.0 5,658.0 5,142.0 5,946.0 6,320.0Total assets 29,930.0 34,628.0 35,994.0 39,848.0 68,153.0Total liabilities 14,562.0 17,394.0 23,888.0 22,406.0 46,677.0 Source: company filings D A T A M O N I T O R

LEADING COMPANIES



Table 12: PepsiCo, Inc.: key financial ratios Ratio 2006 2007 2008 2009 2010Profit margin 16.1% 14.3% 11.9% 13.8% 10.9%Revenue growth 7.9% 12.3% 9.6% 0.0% 33.8%Asset growth (5.7%) 15.7% 3.9% 10.7% 71.0%Liabilities growth (16.7%) 19.4% 37.3% (6.2%) 108.3%Debt/asset ratio 48.7% 50.2% 66.4% 56.2% 68.5%Return on assets 18.3% 17.5% 14.6% 15.7% 11.7% Source: company filings D A T A M O N I T O R

Figure 14: PepsiCo, Inc.: revenues & profitability


LEADING COMPANIES



Figure 15: PepsiCo, Inc.: assets & liabilities


LEADING COMPANIES



The Coca-Cola Company

Table 13: The Coca-Cola Company: key facts Head office: One Coca-Cola Plaza, Atlanta, Georgia 30313, USA Telephone: 1 404 676 2121 Fax: 1 404 676 6792 Website: www.thecoca-colacompany.com Financial year-end: December Ticker: KO Stock exchange: New York Source: company website D A T A M O N I T O R

The Coca-Cola Company (Coca-Cola) engages in the manufacturing, distribution and marketing of non-alcoholic beverage concentrates and syrups. The company owns the world's most valuable brand: Coca-Cola. Furthermore, Coca-Cola markets four of the world's top five nonalcoholic sparkling brands, including Diet Coke, Fanta and Sprite. The company's finished beverage products are sold in more than 200 countries worldwide.

The company primarily produces sparkling beverages, and also a variety of still beverages. Coca-Cola manufactures beverage concentrates and syrups, which it sells to bottling and canning operations, fountain wholesalers and retailers. The company also manufactures finished beverages. Coca-Cola owns or licenses nearly 500 brands, including diet and light beverages, waters, enhanced waters, juice and juice drinks, teas, coffees, and energy and sports drinks. In addition, the company has ownership interests in a number of bottling and canning operations, most of which are independently owned and managed.

Most of Coca-Cola's products are manufactured and sold by bottling partners, who convert them into finished packaged products for sale to distributors and other customers. The company sells the concentrates and syrups for bottled and canned beverages to authorized bottling and canning operations. Authorized bottlers and canners either combine syrups with sparkling water or combine concentrates with sweeteners (depending on the product), still water and sparkling water to produce finished sparkling beverages. These sparkling beverages are packaged in cans, glass and plastic bottles, and sold to wholesalers and retailers. In addition to selling concentrates and syrups for making sparkling beverages and flavored still beverages, the company also sells concentrates for purified water products such as Dasani to authorized bottling operations.

LEADING COMPANIES



The company's beverage products include Coca-Cola, caffeine free Coca-Cola, Cherry Coke, Diet Coke (sold as Coca-Cola Light in many countries other than the US), caffeine free Diet Coke, Diet Coke Sweetened with Splenda, Diet Coke with Lime, Diet Cherry Coke, Coca-Cola Zero (sold as Coke Zero in some countries), Fanta, Sprite, Diet Sprite/ Sprite Zero (sold as Sprite Light in many countries other than the US), Pibb Xtra, Mello Yello, Tab, Fresca and Barq's sparkling beverages, Powerade, Aquarius, Sokenbicha, Ciel, Bonaqa/Bonaqua, Dasani, Dasani flavored waters, Georgia ready-to-drink coffees (sold primarily in Japan), Lift, Thums Up, Kinley, Eight O'Clock, Qoo, Mother, Vault, NOS, Full Throttle and other products developed for specific countries. The beverage products also include enhanced water products such as glaceau vitaminwater and smartwater, Fuze fortified beverages, tea-flavored beverages and fruit drinks sold in the US, and Matte Leao herbal beverages sold in Brazil. In many countries (excluding the US, among others), the company's beverage products also include Schweppes, Canada Dry, Dr Pepper and Crush.

Coca-Cola produces, distributes and markets juice and juice-drink products, including Minute Maid juices and juice drinks, Simply Orange and other juices and juice drinks, Cappy juices, Odwalla nourishing health beverages, Five Alive refreshment beverages and Bacardi mixers concentrate. The company also has a license to manufacture and sell concentrates for Seagram's mixers, a line of sparkling beverages, in the US and certain other countries. Coca-Cola also operates Multon, a juice business in Russia, as a joint venture with Coca-Cola Hellenic Bottling Company (Coca-Cola Hellenic). Multon manufactures, markets and sells juice products under various trademarks including Dobriy, Rich and Nico Biotime in Russia, Ukraine and Belarus.

Beverage Partners Worldwide, the company's joint venture with Nestle, markets ready-to-drink tea products under various trademarks, including Nestea, Enviga, Yang Guang, Nagomi, Frestea, Ten Ren, Yuan Ye, Tian Yu Di (Heaven & Earth), Nestea Vitao and Nestea Cool, in various markets worldwide, other than the US and Japan. Coca-Cola manufactures, markets and sells packaged juices, nectars and fruit-flavored beverages under the del Valle trademark through joint ventures with its bottling partners in Mexico and Brazil. Ilko Coffee International, a joint venture with illycaffe SpA and Ilko Hellenic Partners, manufactures, market and sell ready-to-drink coffees under the illy issimo brand.

Coca-Cola operates its business through six business segments: North America, Eurasia and Africa, Europe, Latin America, Pacific, and Bottling investments. Coca-Cola also reports a non-operating segment: corporate. The company has divided its operations into segments based on geographic operations.

The North American business segment consists of the company's operations in the US, Canada, Puerto Rico, the Virgin Islands, and the Cayman Islands. The segment operates three business units, sparkling beverages, still beverages and emerging brands.

LEADING COMPANIES



The North American business segment operates owns nine still beverage production facilities, 10 principal beverage concentrate and/or syrup manufacturing plants, four bottled water facilities, leases one bottled water facility, and owns a facility that manufactures juice concentrates.

The Eurasia business segment covers Coca-Cola's operations spanning from Eastern Europe and Russia in the North to the Middle East and India in the South. It also covers continental Africa, and in the Indian Ocean islands of Mauritius and Seychelles. The Europe business segment covers operations spread across Eastern and Western Europe. The Latin American business segment comprises Coca-Cola's operations in Central and South America and the Caribbean region. The Pacific business segment encompasses the company's operations in Philippines, Korea, and China. In addition, the segment includes operations in Southeast, West Asia and South Pacific countries. The bottling investment business segment operates across five continents.

Key Metrics

The company recorded revenues of $35,119 million in the fiscal year ending December 2010, an increase of 13.3% compared to fiscal 2009. Its net income was $11,809 million in fiscal 2010, compared to a net income of $6,824 million in the preceding year.

Table 14: The Coca-Cola Company: key financials ($) $ million 2006 2007 2008 2009 2010Revenues 24,088.0 28,857.0 31,944.0 30,990.0 35,119.0Net income (loss) 5,080.0 5,981.0 5,807.0 6,824.0 11,809.0Total assets 29,963.0 43,269.0 40,519.0 48,671.0 72,921.0Total liabilities 13,043.0 21,525.0 12,988.0 13,721.0 41,604.0 Source: company filings D A T A M O N I T O R

LEADING COMPANIES



Table 15: The Coca-Cola Company: key financial ratios Ratio 2006 2007 2008 2009 2010Profit margin 21.1% 20.7% 18.2% 22.0% 33.6%Revenue growth 4.3% 19.8% 10.7% (3.0%) 13.3%Asset growth 1.8% 44.4% (6.4%) 20.1% 49.8%Liabilities growth (0.2%) 65.0% (39.7%) 5.6% 203.2%Debt/asset ratio 43.5% 49.7% 32.1% 28.2% 57.1%Return on assets 17.1% 16.3% 13.9% 15.3% 19.4% Source: company filings D A T A M O N I T O R

Figure 16: The Coca-Cola Company: revenues & profitability


LEADING COMPANIES



Figure 17: The Coca-Cola Company: assets & liabilities


LEADING COMPANIES



Anheuser-Busch InBev

Table 16: Anheuser-Busch InBev: key facts Head office: Brouwerijplein 1, 3000 Leuven, BEL Telephone: 32 16 27 61 11 Fax: 32 16 50 61 11 Website: www.ab-inbev.com Financial year-end: December Ticker: ABI Stock exchange: Euronext Bruxelles Source: company website D A T A M O N I T O R

ABInBev is engaged in the production, distribution, and sale of beer and soft drinks. The company sells lagers, premium beers, and specialty brews in several countries across the world and operates facilities in over 23 countries. It is the leading global brewer and one of the world's top five consumer products companies.

The company offers a portfolio of over 200 brands, that includes global flagship brands Budweiser, Stella Artois and Beck's and fast growing multi-country brands like Leffe and Hoegaarden. In addition, the company's local champion brands include Bud Light, Skol, Brahma, Quilmes, Jupiler and many others. The company carries on the manufacturing operations in 152 beverage plants globally.

ABInBev's reportable business is organized into seven operating segments on the basis of geographical areas: Latin America North, Western Europe, Central and Eastern Europe, North America, Latin America South, Asia Pacific, and Global export and holding companies.

Latin America North segment encompasses operations of Brazil, Dominican Republic, Ecuador, Guatemala, Peru, and Venezuela. The company manages its Brazilian operations through its subsidiary Cia de Bebidas das Americas-AmBev while the Embodom C. Por A. is engaged in the operations of Dominican Republic. Besides, Cervesur handles the operations in Ecuador, Ind. Del Atlantico in Guatemala, Cia Cerv. AmBev is engaged in the operations of the Peru region, and CACN manages the Venezuelan operations.

Western Europe segment includes the company's operations in the Belgium, France, Germany, Switzerland, Austria, Italy, Spain, Luxembourg, the Netherlands, UK and Ireland.

LEADING COMPANIES



InBev Belgium, InBev France, InBev Deutschland Vertriebs, InBev Italia, InBev Nederland, and InBev U.K. manages the ABInBEv's operations in the respective countries. In addition, Luxembourg operations are under the Brasserie de Luxembourg Mousel-Diekirch subsidiary.

Central and Eastern Europe segment comprises the operations of Kamenitza, Zagrebacka Pivovara, Pivovary Staropramen, Borsodi Sorgyar, Trebjesa, InBev Romania, SUN InBev Russia, Apatinska Pivara Apatin, SUN InBev Ukraine subsidiaries. These subsidiaries handles the ABInBev's proceedings in Bulgaria, Croatia, Czech Republic, Hungary, Montenegro, Romania, Russia, Serbia, and Ukraine respectively.

The company's North American segment is managed by the Anheuser-Busch, Labatt Brewing Company, and Cerveceria Bucanero with respective operations in the US, Canada, and Cuba.

Latin America South includes operations of Argentina, Bolivia, Chile, Paraguay, and Uruguay. The activities of this segment are administered by the Cia Malteria Quilmes in Argentina, Cia Boliviana National in Bolivia, FNC in Uruguay, and Cia Chile and Cia Paraguay in respective countries.

Furthermore, Asia-Pacific segment includes Anheuser-Busch InBev's operations in China, and Oriental Brewery's operations in South Korea.

Global export and holding companies segment incorporates the export sales as well as the intra-group transactions.

Key Metrics

The company recorded revenues of $48,083 million in the fiscal year ending December 2010, a decrease of 1.3% compared to fiscal 2009. Its net income was $5,333 million in fiscal 2010, compared to a net income of $6,111 million in the preceding year.

Table 17: Anheuser-Busch InBev: key financials ($) $ million 2006 2007 2008 2009 2010Revenues 17,629.3 19,115.6 21,330.5 48,693.8 48,083.1Net income (loss) 2,816.3 4,037.7 2,780.6 6,110.9 5,333.3Total assets 34,768.4 38,018.0 107,716.5 149,063.4 151,470.4Total liabilities 18,524.8 19,968.7 84,461.1 105,121.3 100,072.9 Source: company filings D A T A M O N I T O R

LEADING COMPANIES



Table 18: Anheuser-Busch InBev: key financials (€) € million 2006 2007 2008 2009 2010Revenues 13,308.0 14,430.0 16,102.0 36,758.0 36,297.0Net income (loss) 2,126.0 3,048.0 2,099.0 4,613.0 4,026.0Total assets 26,246.0 28,699.0 81,313.0 112,525.0 114,342.0Total liabilities 13,984.0 15,074.0 63,758.0 79,354.0 75,543.0 Source: company filings D A T A M O N I T O R

Table 19: Anheuser-Busch InBev: key financial ratios Ratio 2006 2007 2008 2009 2010Profit margin 16.0% 21.1% 13.0% 12.5% 11.1%Revenue growth 14.2% 8.4% 11.6% 128.3% (1.3%)Asset growth 11.4% 9.3% 183.3% 38.4% 1.6%Liabilities growth 19.4% 7.8% 323.0% 24.5% (4.8%)Debt/asset ratio 53.3% 52.5% 78.4% 70.5% 66.1%Return on assets 8.5% 11.1% 3.8% 4.8% 3.5% Source: company filings D A T A M O N I T O R

LEADING COMPANIES



Figure 18: Anheuser-Busch InBev: revenues & profitability


Figure 19: Anheuser-Busch InBev: assets & liabilities


MARKET FORECASTS



MARKET FORECASTS

Market value forecast

In 2015, the global beverages industry is forecast to have a value of $1,909,008.8 million, an increase of 9.1% since 2010.

The compound annual growth rate of the industry in the period 2010–15 is predicted to be 1.8%.

Table 20: Global beverages industry value forecast: $ million, 2010–15 Year $ million € million % Growth2010 1,749,350.9 1,317,391.4 15.0%2011 1,772,372.1 1,334,728.1 1.3%2012 1,817,897.0 1,369,011.8 2.6%2013 1,860,588.3 1,401,161.5 2.3%2014 1,908,654.1 1,437,358.6 2.6%2015 1,909,008.8 1,437,625.7 0.0%

CAGR: 2010–15 1.8%


Figure 20: Global beverages industry value forecast: $ million, 2010–15


MARKET FORECASTS



Market volume forecast

In 2015, the global beverages industry is forecast to have a volume of 262,286.5 million Kg, an increase of 7% since 2010.

The compound annual growth rate of the industry in the period 2010–15 is predicted to be 1.4%.

Table 21: Global beverages industry volume forecast: million Kg, 2010–15 Year million Kg % Growth2010 245,177.3 13.0%2011 246,917.3 0.7%2012 251,887.8 2.0%2013 256,394.7 1.8%2014 261,411.7 2.0%2015 262,286.5 0.3%

CAGR: 2010–15 1.4%


Figure 21: Global beverages industry volume forecast: million Kg, 2010–15


APPENDIX



APPENDIX

Methodology

Datamonitor Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross-checked and presented in a consistent and accessible style.

Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and supported by analysis from industry experts using highly complex modeling & forecasting tools, Datamonitor’s in-house databases provide the foundation for all related industry profiles

Preparatory research – We also maintain extensive in-house databases of news, analyst commentary, company profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market overview

Definitions – Market definitions are standardized to allow comparison from country to country. The parameters of each definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the market and our clients

Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and trends

Datamonitor aggregates and analyzes a number of secondary information sources, including: - National/Governmental statistics - International data (official international sources) - National and International trade associations - Broker and analyst reports - Company Annual Reports - Business information libraries and databases

Modeling & forecasting tools – Datamonitor has developed powerful tools that allow quantitative and qualitative data to be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can then be refined according to specific competitive, regulatory and demand-related factors

Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date

APPENDIX



Industry associations

American Beverage Association

1101 16th Street, N.W. Washington, DC 20036-4803 USA Tel.: 1 202 463 6790 Fax: 1 202 463 8172 www.ameribev.org

Master Brewers Association of the Americas

3340 Pilot Knob Road - St. Paul, MN 55121, USA Tel.: 1 651 454 7250 Fax: 1 651 454 0766 www.mbaa.com

Distilled Spirits Council

1250 Eye Street, NW, Suite 400, Washington, D.C. 20005, USA Tel.: 1 202 628 3544 www.discus.org

Related Datamonitor research

Industry Profile

Global Drug Retail

Global Hypermarkets & Super Centers

Global Food & Staples Retail

Global Brewers

Global Distillers & Vintners

APPENDIX



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