There seems to be not much similarity between the sale of soft drinks and cigarettes, but they are certainly closer.
A recent study showed a decrease in the consumption of soda in the U.S., and cola companies seem to be the adoption of marketing strategies used by tobacco companies to retain and attract customers, according to Forbes.com
Beverage Digest, which annually measures the amount of carbonated soft drinks (CSD) market in the U.S., according to soda consumption has fallen by 1% in 2011 compared to 2010, continuing a general seven-year-long recession. Meanwhile, the fall in consumption is that tobacco companies have long been accustomed to making up new strategies to maintain revenue.
Last year, the major tobacco companies in the U.S. increased cigarette prices by half, to compensate for the decline. Soft drinks are not as addictive as tobacco, so obviously, such an aggressive pricing policy, it is unlikely to work, however, the values of sales of CSD, is reported to have crept up. According to Forbes.com, the total retail sales of CSD rose by 2% to $ 75.7bln in 2011. How is this possible? Two words - energy drinks. Energy drinks have a higher retail price, so that instead of raising prices on traditional cola, the company actively promotes the beverage with a higher margin. Which brings us to the alternatives?
Another trick used by tobacco companies to stay in business use of alternatives like smokeless tobacco. Nicotine patches or gum, for example, are considered less harmful than cigarettes and typically attracts a lower excise tax. A similar story is observed with the non-carbonated beverages such as tea, water faucets, etc., which also increased sales by 0.8% in 2011 in the U.S.
Another point of the tobacco companies could be a useful tool - lobbying. In 2011 they were estimated to have spent up to $ 16 million on lobbying, according to Forbes.com. When it comes to soda manufacturers, here they managed to beat the confident brand of cigarettes. At PepsiCo, Coca-Cola Co drinks, and the American Association spent $ 70 million on lobbying last year.
Nevertheless, the aggressive lobbying of soda giant will not help prevent a law, recently applied in California, making them change their top-secret recipes. Scientific research has shown that Coca-Cola, Pepsi-Cola and Dr. Pepper all have a component that causes cancer in laboratory rats. 4-M is used for color and the scientists say, excessive use can cause cancer in humans, too.
Even if he thought people should drink more than a thousand cans of cola a day to get cancer, Pepsi-Cola and Coca-Cola continues to change their recipes. Otherwise, they would have to label their products as an increased risk of developing cancer - and it’s definitely not a good marketing ploy. New ash is currently sold only in California but it is planned that it will soon be distributed throughout the country. However, other countries will continue to be available to traditional beverage.
On a global scale, such as Coca-Cola and Pepsi-Cola is doing very well. Both are witnessing the growth of sales in Latin America, Europe, Asia and the Middle East, especially in emerging markets. In the fourth quarter of 2011, Coca-Coca sales rose 33 percent in Thailand, 15 per cent, in India, 12 per cent in China, 8 percent in Russia. While the company’s global growth rate is estimated to be around 5%.
In Russia, sales of carbonated drinks rose by 3 percent in the fourth quarter of 2011, and now a group of activists calling for the court to ban Coca-Cola Light. To replace sugar producer uses chemicals that are believed to be about 200 times sweeter, and scientists warn it has a negative effect on the human brain. Activists say the drink labels mentioned nothing of these risks and to warn consumers.