Soft Drink: Navigation Search
Soft Drink: Navigation Search
A glass of cola.
A soft drink (also referred to as soda, soda pop, pop, tonic, coke, or fizzy drink) is a non-
alcoholic beverage typically containing water — often carbonated water — and a flavoring
agent. Many of these beverages are sweetened by the addition of sugar or high-fructose corn
syrup, or — in the case of "diet" drinks — with a sugar substitute. They may also contain
ingredients such as caffeine and fruit juice.
They are called "soft" in contrast to "hard drinks" — that is, alcoholic beverages. Small amounts
of alcohol may be present in a soft drink, but the alcohol content generally must be less than
0.5% of the total volume if the drink is to be considered non-alcoholic.[1]
Widely sold soft drink varieties/flavors include cola, lemon-lime, root beer, orange, grape, cream
soda, ginger ale, flavored water, tonic water, sparkling lemonade, sparkling water, iced tea, sweet
tea, squash, and fruit punch.
Soft drinks are usually served chilled or at room temperature, are rarely heated, and generally do
not include milk or other dairy beverages. Beverages that are typically not considered soft drinks
include hot chocolate, hot tea, coffee, pure juice, milkshake, and schorle.
Contents
[hide]
1 Regional names
2 History
o 2.1 Carbonated drinks
o 2.2 Phosphate soda
o 2.3 Soda fountain pioneers
o 2.4 Soda fountains vs. bottled sodas
o 2.5 Soft drink bottling industry
2.5.1 Automatic production of glass bottles
2.5.2 Home-Paks and vending machines
3 Production
o 3.1 Soft drink production
o 3.2 Ingredient quality
o 3.3 Soft drink packaging
4 Producers
o 4.1 Producers by Region:
4.1.1 North America
4.1.2 South America
4.1.3 Europe
4.1.4 Africa
4.1.5 Middle East
4.1.6 East Asia
4.1.7 Australia
5 Ice cream sodas/floats
6 Health effects
o 6.1 Obesity and weight-related diseases
o 6.2 Dental decay
o 6.3 Hypokalemia
o 6.4 Soft drinks and bone density
o 6.5 Nutritional value
o 6.6 Sugar content
7 Government regulation
o 7.1 Schools
o 7.2 Taxation
o 7.3 Pesticides in India
o 7.4 Benzene
8 Alcohol content
9 See also
10 References
11 External links
The terms used for soft drinks vary widely both by country and regionally within some countries.
[2]
[edit] History
This section needs additional citations for verification.
Please help improve this article by adding reliable references. Unsourced material may be challenged and
removed. (June 2008)
Soft drinks trace their history back to the mineral waters found in natural springs. Ancient
societies believed that bathing in natural springs and/or drinking mineral waters could cure many
diseases. Early scientists who studied mineral waters included Jābir ibn Hayyān, Alkindus,
Rhazes, Paracelsus, Robert Boyle, Friedrich Hoffmann, Antoine Laurent Lavoisier, Hermann
Boerhaave, William Brownrigg, Gabriel F. Venel, Joseph Black, and David Macbride.
Among the earliest soft drinks were sherbets developed by Arabic chemists and originally served
in the medieval Near East. "Alkaline Substances", "A kind of Saltwort" from which soda is
obtained, probably from Arabic suwwad, the name of a variety of saltwort exported from North
Africa to Sicily in the Middle Ages, related to sawad "black," the color of the plant.[3] These were
juiced soft drinks made of crushed fruit, herbs, or flowers.[4]
Dandelion & burdock, a naturally carbonated drink made from fermented dandelion (Taraxacum
officinale) and burdock (Arctium lappa) roots, was first made in England in around 1265. The
drink, similar to sarsaparilla, is still available today, but is made with flavorings and carbonated
water, since the safrole in the original recipe was found to be carcinogenic.[5]
The first marketed soft drinks (non-carbonated) in the Western world appeared in the 17th
century. They were made from water and lemon juice sweetened with honey. In 1676, the
Compagnie des Limonadiers of Paris was granted a monopoly for the sale of lemonade soft
drinks. Vendors carried tanks of lemonade on their backs and dispensed cups of the soft drink to
thirsty Parisians.
[edit] Carbonated drinks
In late 18th century, scientists made important progress in replicating naturally carbonated
mineral waters. In 1767, Englishman Joseph Priestley first discovered a method of infusing water
with carbon dioxide to make carbonated water[6] when he suspended a bowl of distilled water
above a beer vat at a local brewery in Leeds, England. His invention of carbonated water, (also
known as soda water), is the major and defining component of most soft drinks. Priestley found
water thus treated had a pleasant taste, and he offered it to friends as a refreshing drink. In 1772,
Priestley published a paper entitled Impregnating Water with Fixed Air in which he describes
dripping oil of vitriol (or sulfuric acid as it is now called) onto chalk to produce carbon dioxide
gas, and encouraging the gas to dissolve into an agitated bowl of water.[7]
Another Englishman, John Mervin Nooth, improved Priestley's design and sold his apparatus for
commercial use in pharmacies. Swedish chemist Torbern Bergman invented a generating
apparatus that made carbonated water from chalk by the use of sulfuric acid. Bergman's
apparatus allowed imitation mineral water to be produced in large amounts. Swedish chemist
Jöns Jacob Berzelius started to add flavors (spices, juices and wine) to carbonated water in the
late 18th century.
In the 1950s, a variant of soda in the United States called "Phosphate Soda" became popular with
the most popular of them being the orange phosphate. The drink consists of 1 oz orange syrup,
1/2 teaspoon of phosphoric acid, and the rest being carbonated water in a glass filed with ice.
This drink was commonly served in pharmacies.
Artificial mineral waters, usually called "soda water," and the soda fountain made the biggest
splash in the United States. Beginning in 1806, Yale chemistry professor Benjamin Silliman sold
soda waters in New Haven, Connecticut. He used a Nooth apparatus to produce his waters.
Businessmen in Philadelphia and New York City also began selling soda water in the early 19th
century. In the 1830s, John Matthews of New York City and John Lippincott of Philadelphia
began manufacturing soda fountains. Both men were successful and built large factories for
fabricating fountains.
The drinking of either natural or artificial mineral water was considered a healthy practice. The
American pharmacists selling mineral waters began to add herbs and chemicals to unflavored
mineral water. They used birch bark (see birch beer), dandelion, sarsaparilla, fruit extracts, and
other substances. Flavorings were also added to improve the taste. Pharmacies with soda
fountains became a popular part of American culture. Many Americans frequented the soda
fountain on a daily basis. Due to problems in the U.S. glass industry, bottled drinks were a small
portion of the market in the 19th century. (They were certainly known in England, though. In
The Tenant of Wildfell Hall, published in 1848, the caddish Huntingdon, recovering from months
of debauchery, wakes at noon and gulps a bottle of soda-water.[8]) In America, most soft drinks
were dispensed and consumed at a soda fountain, usually in a drugstore or ice cream parlor. In
the early 20th century, sales of bottled soda increased exponentially. In the second half of the
20th century, canned soft drinks became an important share of the market.
Over 1,500 U.S. patents were filed for either a cork, cap, or lid for the carbonated drink bottle
tops during the early days of the bottling industry. Carbonated drink bottles are under great
pressure from the gas. Inventors were trying to find the best way to prevent the carbon dioxide or
bubbles from escaping. In 1892, the "Crown Cork Bottle Seal" was patented by William Painter,
a Baltimore, Maryland machine shop operator. It was the first very successful method of keeping
the bubbles in the bottle.
In 1899, the first patent was issued for a glass-blowing machine for the automatic production of
glass bottles. Earlier glass bottles had all been hand-blown. Four years later, the new bottle-
blowing machine was in operation. It was first operated by the inventor, Michael Owens, an
employee of Libby Glass Company. Within a few years, glass bottle production increased from
1,400 bottles a day to about 58,000 bottles a day.
During the 1920s, the first "Home-Paks" were invented. "Home-Paks" are the familiar six-pack
cartons made from cardboard. Automatic vending machines also began to appear in the 1920s.
[edit] Production
[edit] Soft drink production
Soft drinks are made by mixing dry ingredients and/or fresh ingredients (e.g. lemons, oranges,
etc.) with water. Production of soft drinks can be done at factories, or at home.
Soft drinks can be made at home by mixing either a syrup or dry ingredients with carbonated
water. Carbonated water is made using a home carbonation system or by dropping dry ice into
water. Syrups are commercially sold by companies such as Soda-Club.
Of most importance is that the ingredient meets the agreed specification on all major parameters.
This is not only the functional parameter, i.e. the level of the major constituent, but the level of
impurities, the microbiological status and physical parameters such as color, particle size, etc.[9]
[edit] Soft drink packaging
U.S. containers in 2008. Various sizes from 8-67.6 U.S. fl oz (237 mL -2 L) shown in can, glass
and plastic bottles
In the United States, soft drinks are sold in 3, 2, 1.5, 1 liter, 500 mL (16.9 U.S. fl oz), 8, 12, 14,
16, 20 and 24 U.S. fluid ounce plastic bottles, 12 U.S. fluid ounce cans, and short eight-ounce
cans. Some Coca-Cola products can be purchased in 8 and 12 U.S. fluid ounce glass bottles.
Jones Soda and Orange Crush are sold in 16 U.S. fluid ounce (1 U.S. pint) glass bottles. Cans are
packaged in a variety of quantities such as six packs, 12 packs and cases of 24, 36 and 360. With
the advent of energy drinks sold in eight-fluid-ounce cans in the U.S., some soft drinks are now
sold in similarly sized cans. It is also common for carbonated soft drinks to be served as fountain
drinks in which carbonation is added to a concentrate immediately prior to serving.
In Europe, soft drinks are typically sold in 2, 1.5, 1-litre, 500 mL plastic or 330 mL glass bottles;
aluminium cans are traditionally sized in 330 mL, although 250 mL slim cans have become
popular since the introduction of canned energy drinks and 355 mL variants of the slim cans
have been introduced by Red Bull more recently. Cans and bottles often come in packs of six or
four. Several countries have standard recyclable packaging with a container deposit, typically
ranging from € 0.15 to 0.25. The bottles are smelted, or cleaned and refilled; cans are crushed
and sold as scrap aluminium.
In Australia, soft drinks are usually sold in 375 mL cans or glass or plastic bottles. Bottles are
usually 390 mL, 600 mL, 1.25 or 2-litre. However, 1.5-litre bottles have more recently been used
by the Coca-Cola Company. South Australia is the only state to offer a container recycling
scheme, recently having lifted the deposit from 5 cents to 10 cents. This scheme is also done in
the Philippines; people usually buy glass bottles and return them in exchange for a small amount
of money.
In Canada, soft drinks are sold in 237 mL (8.3 imp fl oz) and 355 mL (12.5 imp fl oz) aluminum
cans and 591 mL (20.8 imp fl oz), 710 mL (25.0 imp fl oz), 1 L (35.2 imp fl oz), 1.89 L
(66.5 imp fl oz), and 2 L (70.4 imp fl oz) plastic bottles. The odd sizes are due to being the
metric near-equivalents to 8, 12, 16, 20, 24 and 64 U.S. fluid ounces. This allows bottlers to use
the same-sized containers as in the U.S. market. This is an example of a wider phenomenon in
North America. Brands of more international soft drinks such as Fanta and Red Bull are more
likely to come in round-figure capacities.
In India, soft drinks are available in 200 mL and 300 mL glass bottles, 250 mL and 330 mL cans,
and 600 mL, 1.25 L, 1.5 L and 2 L plastic bottles.
[edit] Producers
In every area of the world there are major carbonated beverage producers, however a few major
North American companies are present in most of the countries of the world, such as Pepsi, and
Coca Cola
Pepsi co.
Coca Cola
RC Cola
[edit] Europe
Perrier [16]
[edit] Africa
Drinko[17]
[edit] Australia
Bundaburg
Kirks
The ice cream soda, or ice cream float, is a drink that consists of one or more scoops of ice cream
in either a soft drink or a mixture of flavored syrup and carbonated water. The most common of
these is the root beer float.
In the United States, it is usually called an "ice cream float", but may be called an "ice cream
soda", or soda for short, as they were made at the once-ubiquitous soda fountains. Some ice
cream sodas have specific names such as "black cow", "brown cow", "purple cow" (vanilla ice
cream in purple grape soda), and "Boston cooler" (vanilla ice cream in Vernors ginger ale).
In Scotland (mainly the west coast) it is usually referred to as a "float", for example, a "coke
float" (as elsewhere, "coke" is often used generically to refer to any cola in Scotland, while
"soda" in Scotland is usually taken to mean soda water).
In Belfast, Northern Ireland, there is a regional variation: cola (regardless of brand) and vanilla
ice cream are called a "coke afloat".
Many soft drinks contain ingredients that are themselves sources of concern: caffeine is linked to
anxiety and sleep disruption[22] when consumed in excess, and the health effects of high-fructose
corn syrup and artificial sweeteners remain controversial. Sodium benzoate has been investigated
as a possible cause of DNA damage and hyperactivity. Other substances have negative health
effects, but are present in such small quantities that they are unlikely to pose any substantial
health risk. Benzene belongs to this category: the amount of benzene in soft drinks is small
enough that it is unlikely to pose a health risk.[23]
In 1998, the Center for Science in the Public Interest published a report titled Liquid Candy:
How Soft Drinks are Harming Americans' Health. The report examined statistics relating to the
soaring consumption of soft drinks, particularly by children, and the consequent health
ramifications, including tooth decay, nutritional depletion, obesity, type-2 (formerly known as
"adult-onset") diabetes, and heart disease. It also reviewed soft drink marketing and made
various recommendations aimed at reducing soft drink consumption.[24]
From 1977 to 2001, Americans doubled their consumption of sweetened beverages[25]—a trend
that was paralleled by a doubling of the prevalence of obesity.[26] The consumption of sugar-
sweetened beverages is associated with weight and obesity, and changes in consumption predict
changes in weight.[18][19] One study followed 548 schoolchildren over 19 months and found that
changes in soft drink consumption were associated with changes in body mass index (BMI).[27]
Each soft drink that a child added to his or her daily consumption was accompanied by an
increase in BMI of 0.24 kg/m2. Similarly, an 8-year study of 50,000 female nurses compared
women who went from drinking almost no soft drinks to drinking more than one a day to women
who went from drinking more than one soft drink a day to drinking almost no soft drinks.[28] The
women who increased their consumption of soft drinks gained 8.0 kg over the course of the
study while the women who decreased their consumption gained only 2.8 kg. In each of these
studies, the absolute number of soft drinks consumed per day was also positively associated with
weight gain.
Still, it is possible that people who lead unhealthy lifestyles consume more soft drinks. If so, then
the association between soft drink consumption and weight gain could reflect the consequences
of an unhealthy lifestyle rather than the consequences of consuming soft drinks. Experimental
evidence is needed to definitively establish the causal role of soft drink consumption. Reviews of
the experimental evidence suggest that soft drink consumption does cause weight gain,[18][19] but
the effect is often small except for overweight individuals.[20]
Many of these experiments examined the influence of sugar-sweetened soft drinks on weight
gain in children and adolescents. In one experiment, adolescents replaced sugar-sweetened soft
drinks in their diet with artificially sweetened soft drinks that were sent to their homes over 25
weeks.[29] Compared with children in a control group, children who received the artificially
sweetened drinks saw a smaller increase in their BMI (by −.14 kg/m2), but this effect was only
statistically significant among the heaviest children (who saw a benefit of −.75 kg/m2). In
another study, an educational program encouraged schoolchildren to consume fewer soft drinks.
[30]
During the school year, the prevalence of obesity decreased among children in the program by
0.2%, compared to a 7.5% increase among children in the control group.
Sugar-sweetened drinks also cause weight gain in adults. In one study, overweight individuals
consumed a daily supplement of sucrose-sweetened or artificially sweetened drinks or foods for
a 10 week period.[31] Most of the supplement was in the form of soft drinks. Individuals in the
sucrose group gained 1.6 kg, and individuals in the artificial-sweetener group lost 1.0 kg. A two
week study had participants supplement their diet with sugar-sweetened soft drinks, artificially
sweetened soft drinks, or neither.[32] Although the participants gained the most weight when
consuming the sugar-sweetened drinks, some of the differences were unreliable: the differences
between men who consumed sugar-sweetened drinks or no drinks was not statistically
significant.
Other research suggests that soft drinks might play a special role in weight gain. One four-week
experiment compared a 450 calorie/day supplement of sugar-sweetened soft drinks to a 450
calorie/day supplement of jelly beans.[33] The jelly bean supplement did not lead to weight gain,
but the soft drink supplement did. The likely reason for the difference in weight gain is that
people who consumed the jelly beans lowered their caloric intake at subsequent meals, while
people who consumed soft drinks did not. Thus, the low levels of satiety provided by sugar-
sweetened soft drinks may explain their association with obesity. That is, people who consume
calories in sugar-sweetened beverages may fail to adequately reduce their intake of calories from
other sources. Indeed, people consume more total calories in meals and on days when they are
given sugar-sweetened beverages than when they are given artificially sweetened beverages[32][34]
[35]
or water.[35]
A study by Purdue University reported that no-calorie sweeteners were linked to an increase in
body weight. The experiment compared rats who were fed saccharin-sweetened yogurt and
glucose-sweetened yogurt. The saccharin group eventually consumed more calories, gained more
weight and more body fat, and did not compensate later by cutting back.[36]
The consumption of sugar-sweetened soft drinks is also associated with many weight-related
diseases, including diabetes,[28] metabolic syndrome and cardiovascular risk factors,[37] and
elevated blood pressure.[31]
Most soft drinks contain high concentration of simple carbohydrates - glucose, fructose, sucrose
and other simple sugars. Oral bacteria ferment carbohydrates and produce acid, which dissolves
tooth enamel during the dental decay process; thus, sweetened drinks are likely to increase risk
of dental caries. The risk is greater if the frequency of consumption is high.[38]
A large number of soft drinks are acidic, and some may have a pH of 3.0 or even lower.[39]
Drinking acidic drinks over a long period of time and continuous sipping can therefore erode the
tooth enamel. Drinking through a straw is often advised by dentists as the drink is then
swallowed from the back of the mouth and does not come into contact with the teeth as much. It
has also been suggested that brushing teeth right after drinking soft drinks should be avoided as
this can result in additional erosion to the teeth due to the presence of acid.[40][41]
[edit] Hypokalemia
There have been a handful of published reports describing individuals with severe hypokalemia
(low potassium levels) related to chronic extreme consumption (4-10 L/day) of colas.[42]
The neutrality of this section is disputed. Please see the discussion on the talk page.
Please do not remove this message until the dispute is resolved. (September 2009)
One hypothesis to explain this relationship is that the phosphoric acid contained in some soft
drinks (colas) displaces calcium from the bones, lowering bone density of the skeleton and
leading to weakened bones, or osteoporosis.[44] However, calcium metabolism studies by Dr.
Robert Heaney suggested that the net effect of carbonated soft drinks, (including colas, which
use phosphoric acid as the acidulent) on calcium excretion in urine was negligible. Heaney
concluded that carbonated soft drinks, which do not contain the nutrients needed for bone health,
may displace other foods which do, and that the real issue is that people who drink a lot of soft
drinks also tend to have an overall diet that is low in calcium.[44]
Unless fortified, they also contain little to no vitamins, minerals, fiber, protein, or other essential
nutrients. Soft drinks may also displace other healthier choices in people's diets, such as water,
milk, fruit juice,[45] and vegetable juice.
While the USDA recommended dietary allowance (RDA) of added sugars is less than 10
teaspoons per day for a 2,000-calorie diet[citation needed], many soft drinks contain more than this
amount.[citation needed] High caloric intake contributes to obesity if not balanced with exercise, with a
large amount of exercise being required to offset even small but calorie-rich food and drinks.
Until 1985, most of the calories in soft drinks came from sugar or corn syrup. As of 2010, in the
United States high-fructose corn syrup (HFCS) is used nearly exclusively as a sweetener because
of its lower cost[citation needed], while in Europe, sucrose dominates, because EU agricultural policies
favor production of sugar beets in Europe proper and sugarcane in the former colonies over the
production of corn. HFCS has been criticized as having a number of detrimental effects on
human health, such as promoting diabetes, hyperactivity, hypertension, and a host of other
problems.[46] Although anecdotal evidence has been presented to support such claims, it is well
known that the human body breaks sucrose down into glucose and fructose before it is absorbed
by the intestines. Simple sugars such as fructose are converted into the same intermediates as in
glucose metabolism.[47] However, metabolism of fructose is extremely rapid and is initiated by
fructokinase. Fructokinase activity is not regulated by metabolism or hormones and proceeds
rapidly after intake of fructose. While the intermediates of fructose metabolism are similar to
those of glucose, the rates of formation are excessive. This fact promotes fatty acid and
triglyceride synthesis in the liver, leading to accumulation of fat throughout the body and
possibly non-alcoholic fatty liver disease. Increased blood lipid levels also seem to follow
fructose ingestion over time.
In recent years, debate on whether high-calorie soft drink vending machines should be allowed in
schools has been on the rise. Opponents of the (soft drink) machines believe that soft drinks are a
significant contributor to childhood obesity and tooth decay, and that allowing soft drink sales in
schools encourages children to believe they are safe to consume in moderate to large quantities.
Opponents note that children are not always mature enough to understand the consequences of
their own food choices and should not be routinely exposed to the temptation of readily available
soft drinks. They also argue that schools have a responsibility to look after the health of the
children in their care, and that allowing children easy access to soft drinks violates that
responsibility. Vending machine proponents believe that obesity is a complex issue and soft
drinks are not the only cause. They also note the immense amount of funding soft drink sales
bring to schools. Some people[who?] take a more moderate stance, saying that soft drink machines
should be allowed in schools, but that they should not be the only option available. They propose
that when soft drink vending machines are made available in school grounds, the schools should
be required to provide children with a choice of alternative drinks (such as fruit juice, flavored
water and milk) at a comparable price.
On 3 May 2006, the Alliance for a Healthier Generation, Cadbury Schweppes, Coca-Cola,
PepsiCo, and the American Beverage Association announced new School Beverage Guidelines
that will voluntarily remove high-calorie soft drinks from all U.S. schools.
On 19 May 2006, the British Education Secretary, Alan Johnson, announced new minimum
nutrition standards for school food. Amongst a wide range of measures, from September 2006,
school lunches will be free from carbonated drinks. Schools will also end the sale of junk food
(including carbonated drinks) in vending machines and tuck shops.
[edit] Taxation
In the United States and elsewhere, legislators, health experts and consumer advocates are
considering levying higher taxes on the sale of soft drinks and other sweetened beverages to help
curb the epidemic of obesity among Americans, and its harmful impact on overall health. Higher
taxes could help reduce soda consumption.[48] Taxes could also fund education to increase
consumer awareness of the unhealthy effects of excessive soft drink consumption, and also help
cover costs of caring for conditions resulting from overconsumption.[49] The food and beverage
industry holds considerable clout in Washington, DC, as it has contributed more than $50 million
to legislators since 2000.[50]
In 2003, the Delhi non-profit Centre for Science and Environment published a disputed report
finding pesticide levels in Coke and Pepsi soft drinks sold in India at levels 30 times that
considered safe by the European Economic Commission.[51][52] The Indian Health Minister said
the CSE tests were inaccurate, and said that the government's tests found pesticide levels within
India's standards but above EU standards.[53][54]
A similar CSE report in August 2006 prompted many state governments have issued a ban of the
sale of soft drinks in schools. Kerala issued a complete ban on the sale or manufacture of soft
drinks altogether. (These were later struck down in court.) In return, the soft drink companies
like Coca Cola and Pepsi have issued ads in the media regarding the safety of consumption of the
drinks.[55]
The UK-based Central Science Laboratory, commissioned by Coke, found its products met EU
standards in 2006.[56] Coke and the University of Michigan commissioned an independent study
of its bottling plants by The Energy and Resources Institute (TERI), which reported in 2008 no
unsafe chemicals in the water supply used.[57]
[edit] Benzene
In 2006, the United Kingdom Food Standards Agency published the results of its survey of
benzene levels in soft drinks,[58] which tested 150 products and found that four contained benzene
levels above the World Health Organization (WHO) guidelines for drinking water. The agency
asked for these to be removed from sale.
The United States Food and Drug Administration released its own test results of several soft
drinks containing benzoates and ascorbic or erythorbic acid. Five tested drinks contained
benzene levels above the Environmental Protection Agency's recommended standard of 5 ppb.
The Environmental Working Group[59] has uncovered additional FDA test results that showed the
following results: Of 24 samples of diet soda tested between 1995 and 2001 for the presence of
benzene, 19 (79%) had amounts of benzene in excess of the federal tap water standard of 5 ppb.
Average benzene levels were 19 ppb, about four times tap water standard. One sample contained
55 ppb of benzene, 11 fold tap water standards. Despite these findings, as of 2006, the FDA
stated its belief that "the levels of benzene found in soft drinks and other beverages to date do not
pose a safety concern for consumers".[60]
This is marketing research on the soft drink market and can include information on the
background, market structure, definitions, competitors, trends and developments of soft drinks
and is related to other topics such as beverages, colas, energy drinks and sports drinks.
Table of Contents
Contents
[hide]
1 Background
2 Market Structure
3 Industry Definitions
4 Market Metrics
5 Industry Players
6 Trends and Recent Developments
7 Sources
8 Next Steps
9 Related Research
Background
Carbonated drinks made without any alcohol are called Soft Drinks. They are also known as
Coke/Soda/Pop etc. Hot chocolate, teas, coffee etc are usually excluded from this classification.
They are sold in a variety of sizes and manner. In the U.S., they are often sold in two-liter
bottles, one liter plastic bottles, 24 and 20 US fluid ounce bottles and in 12 US fluid ounce cans.
Packaging is also available in many different quantities including six packs, 12 packs and cases
of 24 and cases of 36.
In Japan, 1.5 liter bottles, 500 mL and 350 mL bottles and cans are sold. At times, the fizzy soft
drinks are served as fountain drinks in which carbonation is added to a concentrate immediately
prior to serving. In Europe, plastic and glass bottles of sizes 2, 1.5, 1, 0.5, 0.35, 0.33 liters,
aluminum cans of 0.33, 0.35, and 0.25 liters are popular. Almost all soft drinks are made of
refined sugars. Hence, they are often criticized for causing obesity and other health related
problems. A link to problems of sleep, bones, and teeth has been proven by many studies.
Market Structure
The soft drink industry is a global marketing phenomenon. In essence, it is simply a blended
water drink with sweeteners, flavors and additives. The success in advertising and marketing this
product lies in convincing billions of consumers to drink these instead of straight water or other
less expensing alternatives. The brand recognition of this industry is extraordinarily high. In
2002, world sales exceeded US $193 billion. In contrast, fruit sales were just US $69 billion.
Global consumption is currently in excess of 327 billion liters.
Pepsi and Coca-Cola, between them, hold the dominant share of the world market. Cadbury
Schweppes follows a close third. Coca-Cola has approximately half of the world market share
and sells 4 out of the top 5 soft drink brands in the world. Coca Cola sales for 2006 reached US
$24.1 billion. It has profit margins of 20% and a market capitalization of US $130 billion. Pepsi
sales stood at US $36 billion but this also includes snacks and other foods.
Some analysts view the definition of soft drinks incomplete and wish to add ready to drinks also,
to this industry. If they are added as well, these would add another 1.3 billion servings to 50
billion servings for these drinks.
Industry Definitions
Fizzy drinks: drinks injected with carbon dioxide at high pressure are called Fizzy drinks.
Floats: soft drink with scoops of ice-cream
Soda: another term for soft drink
Pop: another U.S. term for soft drinks
Coke: a derivative and brand name of Coca-Cola, often used as a label for soft drinks in
general.
Market Metrics
U.S. Market
The U.S. is closely linked with soft drinks with Coca Cola being an American in much of the
world. About 500 soft drinks companies operate in the U.S. Annual sales of refreshments total
approximately US $88 billion, of which three quarters are soft drink sales. There are about 500
soft drink bottlers in the United States.
Soft drink companies manufacture and sell beverage syrups which are essentially bases to
bottling operators that then add sweeteners and/or carbonated water to produce the final product.
Independent bottlers work under license with various soft drink manufacturers and are generally
allotted specific territories to serve. Manufacturers not only provide the bottlers with syrups and
bases, but also often provide other business services such as product quality control, marketing,
advertising, and engineering as well as financial and personnel training.
In return, the bottlers furnish the required capital investment for land, buildings, machinery,
equipment, trucks, bottles and cases. As noted previously, the soft drink industry distributes and
sells its product in two primary forms: packaged and fountain service. In fountain service, the
soft drink product is dispensed and served in cups in restaurant or other retail oriented location
with a food service station.
Coke, Pepsi and Cadbury Schweppes control over 91% of the U.S. market share. They employ
about 63,000 people in the U.S.
World Market
Global sales of soft drinks exceed 327 billion liters and are valued at more then US $393 billion
annually. North America, Europe and Japan are the most mature markets for global soft drinks.
Coco Cola and PepsiCo Inc have significant control over the global soft drinks market and both
have similar business organizations and processes worldwide. The industry includes, other than
the soft drink manufactures themselves, the bottlers and various raw material suppliers. Suppliers
of cans, plastic and glass bottles are included in this category.
Globally, the soft drinks majors continue to face challenges. One key global trend is a move
away to healthier drinks, which may put some pressure on yearly growth in sales of soft drinks.
The push to diet beverages have been well covered by the major producers – with sales of diet
Coke and diet Pepsi still strong. A recent trend is the rise in popularity of sports drinks. Bottled
water has also experienced very strong growth. Finally the quality of water used in the
manufacture of soft drinks poses serious issues for the industry. Major players are working on
the issue as water scarcity becomes a global issue.
Industry Players
The Coca-Cola Company
Coca Cola is the number one brand globally and has been for over 40 years It is sold in virtually
every country of the world. The successful expansion that began in World War II has continued
unabated up to this date. Now, the company has more then 400 brands in its portfolio. Tab,
produced in 1963 was one of the company’s landmark marketing successes.
PepsiCo Inc.
Pepsi-Cola was created in 1898 in New Bern, North Carolina, by druggist Caleb D. Bradham.
PepsiCo Inc. holds about one-third of the U.S. market and is the second largest soft drink major
in the world. It owns Frito-Lay snacks and other businesses. Pepsi soft drinks include brands
such as Pepsi, Diet Pepsi, Slice, Mountain Dew and Mug Root Beer.
Cadbury Schweppes
Cadbury Schweppes PLC is the number three global soft drink producer. The portfolio includes
Squirt, La Casera, TriNa, Spring Valley, and Wave. It has cornered more then 17% of the world
market. Total sales exceed US $12.9 billion.
In 2007, a new issue is the lack of recycling of plastic bottled water containers. Although the
trend to bottled water is high, environmentalists point out many of these are simply filtered tap
water and that the discarded bottles are causing environmental damage. The fallout among
consumers is unclear at mid-point 2007.
After nearly a year of deliberation, Cadbury has finally announced a date for the de-merger of its
US soft drinks arm, American Beverages. Although it appears to make sense to separate this
group from the company's confectionery operations, the separation could leave Cadbury
vulnerable to a takeover, which its turnaround plan may be unable to prevent.
The de-merger, which was first announced as a possibility back in March 2007, will now take
place in May and will see the creation of Dr Pepper Snapple Group as a separate entity with a
listing on the New York Stock Exchange and its own management team. The confectionery arm
is to be renamed Cadbury plc and will be listed in London.
Sources
YahooFinance
Coca-Cola
Pepsi
Datamonitor
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