Cola Wars Continue: Coke versus Pepsi in the 21st Century. Industry Structure and Competitive Interaction

Industry Wrap.
The soft drink industry is largely a duopoly. Coke and Pepsi were among the first to launch carbonated soft drinks (CDS). For over a century other companies tried to enter the market but had to face fierce competition and lawsuits from Coke and Pepsi. The worldwide demand for soft drinks in 1999 was 31 billion cases. Coke and Pepsi together held 74% of market share followed by Cadbury Schweppes at 6%. In this duopoly, participating firms are assured of high long-term economic rents, and there are high barriers of entry. …