1. BEVERAGE WARS COFFEE WARS & BEER WARS

2. Uniqueness of Branding a Beverage Pure Products Packaging Is A POD Brand Extensions Drive Growth Channels Expand Share Health is the New Flavor

3. Pepsi’s Newest Billion Dollar Brands http://www.brandingmagazine.com/2012/01/26/three-new- billion-dollar-brands-for-pepsico/ Already 19 PepsiCo brands had more than $1 billion in annual retail sales, and now Diet Mountain Dew, Brisk and Starbucks ready to drink beverages join the Pepsi billion-dollar club.PepsiCoDiet Mountain Dew Starbucks

4. Pepsi’s Newest Billion Dollar Brands http://www.brandingmagazine.com/2012/01/26/three-new- billion-dollar-brands-for-pepsico/ Diet Mountain DewDiet Mountain Dew was first introduced in 1988, and has a rich background, from NASCAR drivers sponsorships to college basketball and other consumer programs. Their profit has doubled in the past 10 years and in the U.S. is the number one 20 oz. diet soft drink by volume. Diet Mountain Dew

5. Pepsi’s Newest Billion Dollar Brands http://www.brandingmagazine.com/2012/01/26/three-new- billion-dollar-brands-for-pepsico/

6. Brisk, sold under the Pepsi Lipton Tea Partnership, a joint venture formed between PepsiCo and Unilever in 1991, had a good jump start in 2012 with their Star Wars campaign. Over the past three years they have experienced strong growth in the U.S.

7. Pepsi’s Newest Billion Dollar Brands http://www.brandingmagazine.com/2012/01/26/three-new- billion-dollar-brands-for-pepsico/

8. The Pepsi and Starbucks 1994 North American Coffee Partnership has left it’s mark till today.PepsiStarbucks In the already big Starbucks portfolio of ready to drink coffee beverages, Pepsi has successfully introduced new products such as Starbucks Doubleshot Energy+Coffee which they manufacture and distribute.StarbucksPepsiStarbucks

9. Pepsi’s Newest Billion Dollar Brands http://www.brandingmagazine.com/2012/01/26/three-new- billion-dollar-brands-for-pepsico/

10. How to Brand a Beverage Brand Bible: Chapter 25 Reclaiming Superiority  Tropicana once the industry leader in premium non-concentrate  Over time, other brands also created non concentrate products  Tropicana became just another juice brand on the shelf  Their goal to “Reclaim Superiority” was not enough by itself and the Superiority message had faded Rebranding Approach  2 Relevant Juice Concepts 1. GOODNESS 2. ENERGIZING  BRAND Audit Discovery  Name Recognition Very Strong  Straw in Orange = Iconic Symbol  Customers no longer could distinguish Tropicana from other juices in the store

11. BATTLE OF THE COFFEE DRINKS COFFEE WARS COFFEE WARS

12. Coffee Breakdown While Starbucks and Dunkin Donuts can be seen on charts displaying leading coffee brands, McDonalds has also been able to establish itself as a competitor in the coffee industry. Distributing over 400 million cups of coffee each year, McDonalds utilizes the “Gavina Gourmet Coffee” brand to distribute to customers

13. DUNKIN DONUTS VS. STARBUCKS ROUND 1 DUNKIN DONUTS  Dunkin’ Donuts has nearly 11,000 restaurants in 33 countries (about 7,000 in the U.S.).  Dunkin’ Donuts has been more of a traditional advertiser using such recognizable slogans as "America Runs On Dunkin.'" STARBUCKS  Starbucks has 20,000 retail stores in 65 countries (11,000 of them in the U.S.).  Starbucks has focused on creating a connection with customers through in-store experiences such as music and interactions with employees.

14. Who’s Who in Coffee

15. Coffee Loyalties

16. STARBUCKS DELIVERY "Imagine the ability to create a standing order of Starbucks delivered hot to your desk daily. “ - Starbucks CEO Howard Schultz The test delivery service will be made available to loyalty program members through the new mobile order-and- pay app that it will launch in Portland, OR next month and, next year, nationwide. Will this solve the massive commuter lines congestion at stores and give them a clear advantage over competitors? http://www.brandchannel.com/home/post/2014/10/31/141031-Starbucks-Delivery.aspx#continue/

17. Dunkin Cronuts Dunkin is going back to its roots and investing in its donuts once again. Dunkin is going back to its roots and investing in its donuts once again. They have come out with a croissant and donut hybrid, but ran into trademark issues in calling it a “cronut.” They have come out with a croissant and donut hybrid, but ran into trademark issues in calling it a “cronut.” The Dunkin’ Donuts “Croissant Donut” will have to contend with versions from Jack in the Box, Japan's Mister Donut, Rich's Food Service, Disney (available at Epcot), and Moe's Doughs Donut Shop in Brooklyn. The Dunkin’ Donuts “Croissant Donut” will have to contend with versions from Jack in the Box, Japan's Mister Donut, Rich's Food Service, Disney (available at Epcot), and Moe's Doughs Donut Shop in Brooklyn. http://www.brandchannel.com/home/post/2014/10/31/141031- Trademark.aspx#continue

18. Coffee Brand Element Impact Endorsers like GRONK can have a strong appeal Co Branding not high impact: coffee is coffee Location is Critical “Channels” have impact Packaging is limited in what it can provide or differentiate Brand/Product Extensions into newer flavors helps

19. 5 Things I Learned Building The Starbucks Brand5 Things I Learned Building The Starbucks Brand Jerome Conlin  In January 1996 after ten years of leading Nike’s Global Marketing Insights & Planning I accepted the VP of Brand Planning position at Starbucks. In my initial interview in 1995 with CEO Howard Schultz, Arthur Rubenfeld, VP of Retail Stores and VP of Marketing Scott Bedbury we discussed some of the hopes and concerns surrounding how to grow the Starbucks brand with integrity  Brand positioning questions and feedback from senior executives set the tone and direction for brand development work over the course of the next two years. This was also the critical time when we established a brand blueprint for growth with integrity to a set of core values. From this experience I learned five things that helped shift Starbucks onto a more soulful and iconic brand development path. http://www.brandingstrategyinsider.com/2015/10/5-things-i-learned-building-the- starbucks-brand.html#.VvbS6NL2ZJ1

20. 1.Build A Common Brand Vision. When I arrived at Starbucks headquarters in Seattle there were many internal voices telling Howard what he should do to grow. Many of these ideas could have generated additional sales but would not be polishing the brand image in the process or strengthening the internal culture of the brand. Most Starbucks executives came out of the packaged goods or quick service restaurant industry and they brought with them the values, goals and methods of operating common to those industries.

21. 5 Things I Learned Building The Starbucks Brand5 Things I Learned Building The Starbucks Brand Jerome Conlin http://www.brandingstrategyinsider.com/2015/10/5-things-i-learned-building-the- starbucks-brand.html#.VvbS6NL2ZJ1 Yet, Howard was concerned that if Starbucks imitated McDonalds or any other QSR or packaged goods brand it may never achieve its growth potential. This concern had to do with Howard’s deep understanding that coffee wasn’t just another beverage. High quality specialty coffee Howard knew has a rich, colorful and soulful past.

22. http://www.brandingstrategyinsider.com/2015/10/5-things-i-learned-building-the- starbucks-brand.html#.VvbS6NL2ZJ1 2. Set A Course For Insights: On my first day on the job, Scott told me he wanted me to read everything there was to read about the origins and history of coffee, and about Starbucks brand history and to get an accurate fix on its current position in the marketplace, and to let him know where the gaps were for the brand and for the category as a whole if it were to achieve its growth potential. He positioned this work with the senior management team as conducting a “big dig” which was described as a kind of a archeological dig, going down through brand and category layers of meaning to discover the DNA governing engagement and attraction. Scott and I both knew that if you want to change the world, you have to start with an ideal. And we knew that the coffee category in America had been devoid of any real innovation around “ideals” for nearly fifty years.

23. http://www.brandingstrategyinsider.com/2015/10/5-things-i-learned-building-the- starbucks-brand.html#.VvbS6NL2ZJ1 3. Capture The Shared Romantic Ideal: Dream catching was one particularly powerful research tool used in the big dig. It entails delving into the power of a dream state as a means of conceiving and designing ideal experiences. We learned about a shared romantic ideal, which the ideal coffee house represents, a universal vision shared so consistently across ages, genders, geography and demographics. Thus, the ideal coffee shop, as it turns out, is an archetype in the collective subconscious. The resulting imagery helped us to close the gap between what Starbucks had started to become in the public eye, a corporate coffee chain, and the much more ideal experience of a more soulful coffee shop that so many respondents had visualized.

24. http://www.brandingstrategyinsider.com/2015/10/5-things-i-learned-building-the- starbucks-brand.html#.VvbS6NL2ZJ1 4. Bring The Vision To Life: The ideal coffee shop findings were then translated into a store design brief, highlighting the visual cues and design codes that Starbucks designers needed to pay attention to. The findings were embraced by Wright Massey who was Starbucks head of design. Armed with these insights, the Starbucks store design team found new ways to bring the history and mythology of coffee to life, not just in the design of the stores, but also in packaging, posters, promotions, print advertising, the employee handbook and even in the Starbucks Annual Report A unique symbol and packaging style was developed for each variety of coffee, and a story was crafted to explain the stages needed to produce the perfect cup of coffee. The team also developed symbols and graphics to go with each major holiday, and highly stylized but low cost wall murals turned blank walls into rich stories and imagery

25. http://www.brandingstrategyinsider.com/2015/10/5-things-i-learned-building-the- starbucks-brand.html#.VvbS6NL2ZJ1 5. Share The Vision: About nine months later, after immersing myself thoroughly in coffee culture history and getting executive feedback for some of the ideas it was time to share the vision. But it was not enough for the ideal Starbucks coffee shop vision to be expressed only through design. It also had to be expressed through behavior, through each and every Starbucks employee at each location. Hence, we had to share the vision with everyone inside the organization.

26. Starbucks CEO on Building Their Brand

27. BEER WARS

28. Beer Brand Element Impact Endorsers have little influence. Need real people Co Branding helps if associated with event or theme Placement in bars/ restaurants and events is key Packaging creates and reinforces brand identity Brand/Product Extensions into new flavors is the most important element

29. Definition of Craft Beer Brewers Association Small Independent Less than 25 percent of the craft brewery is owned or controlled (or equivalent economic interest) by a beverage alcohol industry member that is not itself a craft brewer Traditional A brewer that has a majority of its total beverage alcohol volume in beers whose flavor derives from traditional or innovative brewing ingredients and their fermentation. Flavored malt beverages (FMBs) are not considered beers. Annual production of 6 million barrels of beer or less (approximately 3 percent of U.S. annual sales). Beer production is attributed to the rules of alternating proprietorships

30. Top Selling Craft Beers - USA Sierra Nevada Sam Adams Lips of Faith Blue Moon Bells Lager Saranac Red Chair Fat Angel Brooklyn Beer Dogfish Beer Stone Beer

31. Bud Light vs. Everyone Else http://www.brandchannel.com/home/post/2014/06/13/140613-POM-Wonderful-Coke-Claims.aspx/

32. “Sales of light beer in America are projected to hit a 10-year low in 2015…” Bud Light  Light beer’s share of the U.S. beer market fell to 50.3% in 2013 from 51.4% in 2012.  Last year, Bud Light Platinum suffered a 19% slide, and the super-premium light beer sector fell by nearly 700,000 barrels. Craft Beers  While overall beer sales have been essentially flat in recent years — and overall production has fallen slightly — craft beer continues to grow. Craft beer’s share of the nearly $100 million U.S. beer market rose to 14 percent in 2013, up from 10 percent two years ago, while total sales have stagnated.

33. Growth in Share of Total U.S. Beer Market

34. 2013 U.S. Beer Sales

35. What’s Wrong With Beer Ads BrandChannel Aside from occasional great Super Bowl ads and Bud's "Wassssssup?" home run, mainstream beer advertising is insipid, loud, fast, still often shockingly chauvinistic, overly complicated and, worst of all, brand interchangeable. Is it any wonder sales of craft and imported beer brands, which offer substance and character, have skyrocketed, especially among Millennials? skyrocketed Bud Light shelled out $500,000 to Crested Butte, Colorado, for the rights to turn the small town into Whatever, USA for a weekend. "Whatevertown" was meant to be an extension of the beer's "Up for Whatever" campaign launched during February's Super Bowl. By now, anyone who has watched summer TV, and especially pre- season football, has seen Bud's bearded nincompoop "mayor" braying about this secret Whatever party destination. Up for Whatever February's Super Bowl.Up for Whatever February's Super Bowl.

36. Bud Light’s “Whatever” Campaign

37. brand and bottle brand and bottle New Booze in Old Bottles: Alcohol Goes Retro for Eternal Cool Factor A psychological phenomenon regarded as “the mere-exposure effect” suggests that people tend to gravitate towards the familiar. Taking something old and making it new is trendy—even fashionable—in this eco-friendly world of ours. Established brands are returning to their roots, mining their archives by reintroducing iconic products with a modern twist. A psychological phenomenon regarded as “the mere-exposure effect” suggests that people tend to gravitate towards the familiar. Taking something old and making it new is trendy—even fashionable—in this eco-friendly world of ours. Established brands are returning to their roots, mining their archives by reintroducing iconic products with a modern twist. “the mere-exposure effect”“the mere-exposure effect” Another retro brew worthy of a shout- out is Churchkey (2010), developed by actor-musician Adrian Grenier (a.k.a. Vincent Chase on HBO’s Entourage ) and former Nike designer Justin Hawkins. Reviving the flat top, steel beer can of the 1930s with an actual church key needed to open, the design keeps beer (in this case, Pilsner) colder longer and eliminates glugging. Its cool factor is bar none.

38. Brand Extension

39. BATTLE OF THE FIZZY DRINKS SODA WARS

40. Soda Breakdown Coca-Cola has a demanding lead over competitors based on brand value. Even Diet Coke has performed marginally better than some of Coca-Cola’s main rivals, such as Pepsi and Red Bull

41. COKE VS. PEPSI ROUND 1 COCA COLA  A brand built around beverages.  Coca-Cola has a product portfolio of more than 3,500 beverages (and 500 brands), spanning from sodas to energy drinks to soy-based drinks.  Read more: http://www.businessinsider.com/facts -about-coca-cola-2011- 6?op=1#ixzz3IcMZKXgP PEPSI  A brand built around food and beverage options.  Pepsi has 22 brands spanning from sodas to juices to potato chips.

42. SOFT DRINK MARKET SHARE In 2013 Coca-Cola held 42.4% market share while Pepsi had only 27.7%.

43. Pepsi, Coke Fight It Out for the Soft Drink Market—Or What’s Left of It Pepsi, Coke Fight It Out for the Soft Drink Market—Or What’s Left of It Posted by Dale Buss on June 3, 2014 03:42 PM Dale Buss Pepsi, Coke Fight It Out for the Soft Drink Market—Or What’s Left of ItDale Buss  National Soda Summit in June  Demise of Soft Drink Market  Pepsi CEO Thinks Sugar Substitute and lower calorie can bring back consumers  “It may never be the high levels of consumption [of soft drinks] that we had when we were young,” Nooyi said. “The new consumers have too many choices that they are playing around with.”  Spire is Pepsi’s answer to Coke’s Freestyle; both machines allow consumers to customize the drink that actually comes out of the tap. “These machines,” Mauro Porcini, PepsiCo’s chief design officer, told the New York Times, “are all about engaging with consumers and allowing them to drive the relationship.”Pepsi’s answer New York Times  Coca-Cola meanwhile has been emphasizing good, old-fashioned price- based promotion of Coke and Diet Coke lately  Coke has been taking share from PepsiCo and Dr Pepper Snapple so far this yeartaking share  Coke also maintains an advantage over Pepsi when it comes to brand attributes, according to a new survey of online consumers. Coca-Cola was found to have a “higher trust score

44. How Critical Are Brand Elements To Success

45. Coca Cola’s Sustainability Platform http://www.coca- colacompany.com/ stories/our-2020- environment-goals- infographic

46. Pepsi Brands Good For You http://www.pepsic o.com/Brands/Bra ndExplorer#good- for-you http://www.pepsico.com/Brands/BrandExplorer#good-for-you

47. COCA COLA LIFE Coca Life is currently in supermarkets across the UK and being distributed through a massive sampling campaign in the US. Sweetened with cane sugar and stevia Coca Cola life is Coke’s attempt at a mid level product that is neither the sugary taste consumers know and love nor a diet zero calorie product. Recent research shows that Coca Cola Life is a hit! 70% rated the taste as 4 out of 5 stars. Consumers like the new green labeling. 80% of purchasers say they would buy it again. http://www.brandchannel.com/home/post/140825-Coca-Cola-Life-US.aspx http://www.usatoday.com/story/money/business/2014/11/04/coca-cola-soft-drinks-coca-cola-life-coke-life-pepsi- true/18477965/

48. PEPSI TRUE True offers a mix of real sugar and stevia-leaf extract, giving it 30 percent less sugar than regular Pepsi and 60 calories per 7.5oz can. True offers a mix of real sugar and stevia-leaf extract, giving it 30 percent less sugar than regular Pepsi and 60 calories per 7.5oz can. PepsiCo has will first make Pepsi True available exclusively on Amazon (where Coca-Cola is also exclusively reviving its Surge brand) before it hits US stores. PepsiCo has will first make Pepsi True available exclusively on Amazon (where Coca-Cola is also exclusively reviving its Surge brand) before it hits US stores. The beverage drew questions about who was the target demographic for the drink. The beverage drew questions about who was the target demographic for the drink. "It's a canned contradiction, because if you're trying to be healthy, you're really supposed to avoid soda," said another taster. "Why grant yourself such a small indulgence when flavored seltzer is just as good?" "It's a canned contradiction, because if you're trying to be healthy, you're really supposed to avoid soda," said another taster. "Why grant yourself such a small indulgence when flavored seltzer is just as good?"

49. DR. PEPPER – THE LAST ALL AMERICAN SODA COMPANY  Unlike Pepsi and Coke, 89% of Dr Pepper Snapple’s sales are in North America while the rest came from sales in Canada, Mexico, and the Caribbean.  So how do you fight the soda wars on the home front? There are several ways, one of which is to get away from “cola.”  The company’s brand A&W is the top-selling root beer, for example, and Squirt is the top-selling grapefruit soda.

50. Pepsi Branding Evolution

51. JUICE WARS

52. Juice Breakdown  1. Real  2. Only Orange  3. V8 Fusion  4. Minute Maid  5. Tropicana  6. Harvest  7. Ceres  8. Trader Joe  9. Del Monte  10. Frooti Real tops the list as the top Juice brand in the world, offering a wide range of flavors and options including both fruits and vegetables. More common juice brands in the US, such as V8 Fusions and Minute maid, come in at numbers 3 and 4 respectively.

53. Tropicana vs. Minute Maid Tropicana  Tropicana offers non-refrigerated drinks, chilled juices and drinks, tropics, pure premium juices, and twisters.  Although Tropicana continues to lead the market in the U.S. today, its footing has never been quite as solid as it was before 2009. Minute Maid  100 different flavors of juices and drinks for adults and children.  Minute Maid continues to gain market share by introducing products priced either slightly above or slightly below Tropicana.

54. Tropicana's Trop50 Adds Tea to Fruit Juice Line Tropicana's Trop50 Adds Tea to Fruit Juice Line Tropicana's low-cal Trop50 brand has been on a roll lately, and the company is trying to extend this hot sub- brand by invading another segment of the beverage market instead of sticking with juices.hot sub- brand Trop50 Juice with Tea is a fruit-juice and tea mix with "50% less sugar and calories" than regular juice, combining fruit juices with white and green teas, in three flavors. Additionally, Tropicana is introducing a new variety of "regular" Trop50, Red Orange, which provides a full day's supply of vitamin C, and a dose of potassium to boot.introducingvariety

55. Tropicana's Trop50 Adds Tea to Fruit Juice Line Tropicana's Trop50 Adds Tea to Fruit Juice Line Combining stevia-sweetened Trop50 with tea seems like a savvy move. because ready-to-drink cold teas are one of the few beverage categories that have been growing robustly lately, like Trop50. Overall growth of the category last year was 4 percent, according to Beverage Digest, about in line with increases enjoyed by bottled water and juice drinks.

56. POM Wars The Supreme Court has ruled that POM can move forward with its false-advertising suit against Coke because there is little actual pomegranate and blueberry juice—only 0.5 percent combined, the court found—in Minute Maid’s Pomegranate Blueberry juice. The Supreme Court has ruled that POM can move forward with its false-advertising suit against Coke because there is little actual pomegranate and blueberry juice—only 0.5 percent combined, the court found—in Minute Maid’s Pomegranate Blueberry juice. Meanwhile, POM remains the subject of a deceptive- advertising case by the federal government for claiming that its pomegranate juice can treat or prevent heart disease and other illnesses. Meanwhile, POM remains the subject of a deceptive- advertising case by the federal government for claiming that its pomegranate juice can treat or prevent heart disease and other illnesses. http://www.brandchannel.com/home/post/2014/06/13/140613-POM-Wonderful-Coke-Claims.aspx/

57. Brand Repositioning Beverage Wars Team Challenge Brand Repositioning PositionMatrix Niche Target Segment Sub Brand Extension

58. Value Price Price Availability Availability Familiarity Familiarity Positioning Matrix Quality Taste Taste Status Status Health Health

59. Target Segmentation