ABSTRACT
This chapter analyzes the diversity efforts of the main competitors in the $76 billion nonalcoholic beverage industry (Dolmetsch, 2014), namely CocaCola and PepsiCo. While recently, the beverage market volume has risen to 30.9 billion, and soda drinks have remained the main segment of the nonalcoholic beverage market (Bailey, 2016), the industry has been facing continuous criticism for its products that lead to obesity and diabetes. For example, the former mayor of New York City, Michael Bloomberg, attempted to ban soda drinks larger than 16 ounces, a proposal later rejected by the state’s highest court (Dolmetsch, 2014) and, currently, the American Beverage Association plans to reduce the beverage calories consumed per person by 20% (Dolmetsch, 2014). Finding themselves at the forefront of criticism over sugar and calorie content, Coca-Cola and PepsiCo addressed these concerns by increasing the number of their products that contain low or zero calories, opting for smaller pack sizes, and refraining from marketing in places frequented by children (Dolmetsch, 2014), a strategy later expanded to include social media. Most recently, a proposed tax on soda drinks in Pennsylvania (Burdo, 2016) has led to significant reactions not only over the health risks associated with carbonated drinks but also with regard to the layoffs that might ensue as a result of the price increase.
