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The Pepsi challenge for Coca Cola
Monday, 12, April 2010

When it comes to selling soda in North America, PepsiCo is accustomed to the role of challenger. Year after year, it chases Coca-Cola and the Atlanta-based company’s market-share lead.But now, it’s PepsiCo that has a head start.The parent company of Pepsi, Gatorade, Tropicana and Doritos is months ahead of Coca-Cola in one of the most important strategic showdowns in decades: The effort to retool bottling operations to gird for the hyper-competitive North American market.

Call it the Bottle Battle, the latest front in the cola wars.Coca-Cola plans to buy the North American operations of bottler Coca-Cola Enterprises in the last three months of 2010. PepsiCo closed a similar deal to buy out two independent bottlers in February. For now, PepsiCo has the first-mover advantage -- “a window of opportunity,” said UBS analyst Kaumil Gajrawala. Why the flurry of moves in the arcane world of bottling? North America is a weak spot in the global drinks business, largely because of the decline of carbonated soft drinks.


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