Beverage Manufacture and Bottling

The US beverage manufacture and bottling industry includes about 3,000 companies with combined annual revenue of $70 billion. Major companies include Coca-Cola, PepsiCo, and Dr Pepper Snapple Group.

The industry includes manufacturers and distributors of soft drinks and bottled water. Manufacturers and distributors of alcoholic beverages are covered in profiles for Breweries, Distillers, Wineries, and Beer, Wine, and Spirits Distributorships.

COMPETITIVE LANDSCAPE

Demand for nonalcoholic beverages is driven by consumer tastes and demographics. The profitability of individual companies depends on effective marketing. Large companies have economies of scale in production and distribution Small companies can compete by producing new products, catering to local tastes, or selling at lower prices. The industry is capital-intensive: average annual revenue per production worker is about $1 million.

PRODUCTS, OPERATIONS & TECHNOLOGY

Nonalcoholic beverages include sodas (carbonated soft drinks, or CSD), bottled waters, juices, and a large variety of mixtures. Sodas account for about 60 percent of the market. The manufacture and distribution of most national soda brands, including Coke and Pepsi, is a two-tiered process. The primary manufacturer produces a flavored syrup called concentrate that is sold to local bottlers who manufacture and distribute the finished product. In a typical bottling operation, the flavored syrup, corn syrup (sugar), and filtered water are mixed in appropriate proportions, carbon dioxide gas is injected, and the finished soda product is poured into bottles or cans, which are capped, labeled, and packaged.

The two-tiered structure is ...