1. Cola Wars Continue: Coke and Pepsi in 2006 MGMT 495 Summer 2011

2. COCA COLA  Forward P/E Ratio (by 12/31/12)  15.43  EBITDA  15.04 PEPSI  Forward P/E Ratio (by 12/25/12)  14.18  EBITDA  10.68 Coca Cola has a higher earnings before interest, taxes, depreciation and amortization, which means it has a greater ability to service its debt. Coca Cola has a higher Forward Price-Earnings Ratio, which means it is expected to yield higher earnings growth in the future.

3.  U.S. Non-Alcoholic Beverage Domestic Competition Market Share http://www.wikinvest.com/stock/Coca-Cola_Company_%28KO%29

4.  Rivals: Pepsi, Coca-Cola, Cadbury Schweppes  Suppliers: Bottling Companies  Contracts terms limited to non-competing other brands.  100 plants to keep up with distribution.  Heavily relied on for profits.  Did a lot of the marketing and distribution.

5.  Customers: Supermarkets, fountain outlets, convenience stores, gas stations, fast food chains, etc.  Fast food chains were bought to create more competition.  Complements: Diet drinks  Mergers: Pepsi with Frito Lay = PepsiCo  Acquisitions: Coke bought MinuteMaid, Duncan Foods, and Belmont Spring Water

6.  Substitutes: Beer, water, milk, coffee, wine, sports drinks, etc.  Both acquired other companies to compete, ▪ Pepsi beat out Coke with the acquisition of Quaker Oats  Change in the Market:  International movement  Obesity ▪ Federal Guidelines said CSD products were fattening ▪ Investments in water and diet products increased.