carbonated beverages have always been loved by large numbers of people. The demand for carbonated soft drink has always been high over decades. Many called it the thirst quencher. Young and the old loved to indulge in fizzy drink. Other than parties and functions, this drink was a hit among youngsters for whiling away their time. Thousands of people were simply addicted to carbonated soft drinks that allowed the companies to make a huge profits. However, as time changed, the demand for carbonated soft drinks started dropping eventually.
Bill Pecoriello was an analyst from Stanley Morgan who had forecast the shift in demand of carbonated soft drinks. Through his studies and research pecoriello could make out that, carbonated soft drink industry will be facing a blow if they are not prepared for a change. Once upon a time these carbonated beverages companies completely relied on the profits made from soft drinks. However, the demand for mineral water and energy drink was on the rise, leaving carbonated drinks behind in the competition.
With the increase in health awareness, more adults restricted themselves as well their children from indulging in carbonated beverages. Most teens also stayed away from carbonated soft drinks fearing their parents. Since people started learning that carbonated beverages are high on calories, they stopped themselves from indulging in it. The soft drinks that once enjoyed limelight for good reasons suddenly found their image deteriorating. As the consumers are getting more knowledgeable about products, they are making better choices. On learning the ill effects of carbonated soft drinks, people have become wise and like to stay away from them. At the same time consumers also want variety and that is one of the reasons for the soft drinks demand to go low.
As per Pecoriello’s studies Pepsi is strongly positioned in the market and ready to face the changes. Pepsico had smartly moved into healthy non carbonated drinks as well, to keep their business growing. As Pepsico deals in non carbonated drinks as well, it will not get hampered by the current situation. As per the research done by Pecoriello Coca Cola has a good chance to stand up and make up for the change. Including mineral water and energy drinks was a good way to beat the change and still stay in the competition.
Many companies who were not prepared to face the shift in the carbonated beverages market collapsed. Carbonated soft drinks may not be completely eliminated from the market, but it will certainly show high reduction in its consumption. Poor weather conditions as well as high prices are also to be blamed for reduction in demand of carbonated soft drinks.
Porceillo claimed that unless companies came up with some variety in their drinks apart from carbonated drinks, it will be difficult to survive in the market. Along with new launches of carbonated soft drinks, the awareness also spread restricting people from these beverages. As per Porceillo, the drink has to have a healthy and positive image in the minds of consumers, for the company to make good business.