The European Soft Drinks segment achieved a substantial revenue of €158.70 billion in 2023, with a projected annual growth rate of 3.01% (CAGR 2023-2027) [1]. Within this dynamic market, PepsiCo stands as a prominent player, holding a leading position as one of the world's largest manufacturers in the beverage industry. In 2020, Pepsi's brand value exceeded $18.2 billion, with its beverages contributing to 46% of the company's revenue [2].
With the digital transformation reshaping consumer habits, online channels, particularly food delivery platforms, have become crucial avenues for manufacturers to capture market share of the European carbonated soft drink. Recognizing the significance of this shift, PepsiCo swiftly adapted its strategy to embrace the evolving landscape by strategically entering the digital space. This article delves into data of three of PepsiCo’s most recognizable brands - Pepsi (Regular), Pepsi Max, and 7UP - and explores their presence as well as gaps on food delivery platforms in three European countries - Spain, France, and Poland. By leveraging Dashmote’s data analytics SaaS platform, we examine how PepsiCo has navigated food delivery by expanding its online product listings in these countries, thereby extending its reach to European consumers' virtual doorsteps.
Before delving into the presence of PepsiCo’s core beverages on food delivery platforms, it’s important to begin with a broader overview of the beverage industry. According to Dashmote's data, the digital storefronts selling beverages vary significantly across three countries. France stands out with the highest beverage penetration rate, where up to 87.5% of the 148K digital storefronts on French food delivery platforms list beverages on their menu. Spain follows closely with a beverage penetration rate of 73%, while Poland has the lowest rate at 66.3% and the smallest number of digital storefronts (39K) on food delivery platforms.
Correspondingly, PepsiCo is largely present on French food delivery platforms, with 38.5% of all digital storefronts listing a PepsiCo product. This is followed closely by Poland, with a PepsiCo penetration rate of 36%. In Spain, there are a lot of opportunities for PepsiCo to grow, where around 19% of all DSFs on food delivery list at least one PepsiCo beverage.
PepsiCo boasts a diverse portfolio of brands, each carefully tailored to cater specific audiences. Pepsi Regular caters to those seeking a bolder taste with an extra burst of flavour, while Pepsi Max appeals to health-conscious individuals in search of a low-calorie option. By having a diverse product listing on food delivery platforms, PepsiCo can enhance its brand reach and visibility. Therefore, analysing the presence and identifying potential gaps in product listings of core brands can provide PepsiCo with a competitive advantage in an increasingly fierce marketplace.
According to Dashmote's data, the presence of PepsiCo core brands varies across different countries. In Poland and Spain, Pepsi Regular reigns as the most listed PepsiCo beverage on food delivery. In Poland, a significant 89% of digital storefronts that offer PepsiCo products sell Pepsi Regular, while the figure is 53% in Spain. Interestingly, in France, the most listed PepsiCo beverage is 7UP, present in 43.2% of digital storefronts listing PepsiCo products, whereas Pepsi Regular constitutes only 26.3%.
The presented graph demonstrates substantial opportunities for PepsiCo across all three markets, where many digital storefronts have yet to include their core brands discussed in this article. By leveraging data to identify and address gaps in product listings, PepsiCo could enhance overall product availability, optimise revenue potential and gain a competitive edge in the market.
According to Dashmote's data, in Poland PepsiCo’s performance is great with 34.6% of all digital storefronts that list at least one PepsiCo beverage, are listing Pepsi Regular, Pepsi Max and 7Up on their menu. Spain and France on the other hand have the highest potential for cross-selling their core products, where respectively 15% and 8% of all DSFs that list PepsiCo beverages, list all the three core brands. This indicates significant growth potential for all three markets, as there is still ample room for further expansion in listings.
By making all PepsiCo brands readily available on food delivery platforms (which can range beyond the three brands that are referenced in this article), PepsiCo can strategically capitalise on significant growth potential and aims for market dominance. This move is especially advantageous as Millennials and Gen Z, the primary target demographics for Pepsi, highly value convenience, time-efficiency, and seamless experiences. By seamlessly integrating its brands into food delivery services, Pepsi can align its marketing strategy with these preferences, presenting a compelling proposition to convenience-oriented consumers and leaving a lasting impression of its products in their minds. This strategic alignment can lead to increased consumer engagement and foster long-term brand loyalty.
Dashmote is dedicated to assisting enterprises in overcoming obstacles and achieving success in the digital market. As the foremost provider of big data and AI analytics solutions in the food and beverage (F&B) sector, we enable brands to make informed strategic choices by offering thorough analysis and invaluable insights into the food delivery market and F&B trends. Interested in taking your online business to the next level? Please reach out to our team at sales@dashmote.com. Together, we can establish a robust online footprint for your Food & Beverage enterprise.
If you find this article valuable, you may wish to check out more of our blog articles on Pepsi, such as the battle between Coca-Cola and Pepsi in the UK or local VS. global cola in India.
Let's take a look at the giants of the soft drink industry. Coca-Cola and Pepsi are household names worldwide, originating in the USA and spreading their refreshing reach to every corner of the world, India included. They bring an international taste, with a variety of drink options that appeal to a wide range of palates.
In contrast, Thums Up offers a uniquely Indian experience. Originating in India during the 1970s as a local alternative to foreign brands, it presents a bolder, fizzier flavour, and is loved by many for its distinct taste and Indian roots [1].Despite being acquired by Coca-Cola in the '90s, Thums Up has managed to maintain its authentic Indian identity and connect deeply with local consumers. While some speculated that Coca-Cola's acquisition aimed to eliminate competition [2], the company has consistently denied such claims. The bond between Indians and Thums Up is so strong that a hill in Maharashtra has been named after the beloved drink.
A digital storefront is a virtual outlet where businesses showcase and sell products to a global audience. It has gained relevance due to the shift towards online shopping and the rise of e-commerce platforms. Having a digital storefront alongside physical stores is crucial, especially during the COVID-19 crisis, as it allows businesses to adapt and thrive. It offers lower operational costs, wider exposure, and the flexibility to operate from anywhere. However, having a digital storefront alone does not guarantee increased leads and sales. Implementing effective sales and marketing principles is necessary for consistent quality leads. In the soft drink industry in India, digital storefronts play a significant role in the competition between Thums Up, Pepsi, and Coca-Cola, revealing market penetration and growth. Digital storefronts provide businesses with an opportunity to overcome geographical limitations and tap into a larger market, contributing to their growth and success.
From Q1 2022 to Q2 2023, we monitored the online presence of three brands in digital storefronts selling soft drinks across India. Initially, Coca-Cola had a digital presence in approximately 62% of these platforms. In contrast, Pepsi had a presence in around 31%, while Thums Up, the local player, established itself on about 19% of these platforms.
Throughout this period, all three brands experienced growth in their digital presence. Despite a slight drop to about 57% by Q2 2023, Coca-Cola achieved an overall growth of approximately 18%. On the other hand, Pepsi started with a 31% presence and achieved an overall growth of approximately 32%, maintaining an average market penetration of around 30%. Thums Up, starting from a smaller base, demonstrated resilience and consistent growth, reaching approximately 20% by the end of the period. This represents an overall growth of about 29%.
Whether you're an established brand or a newcomer, the following strategies can serve as your roadmap to growth. Based on our analysis and industry insights, the beverage market in India offers significant opportunities for online success and market expansion [1]. To boost your online presence and expand your market reach, consider implementing the following key takeaways:
1 - Boost Your Digital Footprint: Online platforms have become the new battleground for brands. In the competition between Pepsi, Coca-Cola, and Thums Up, all three have expanded their digital presence. To stay relevant, beverage brands need to strengthen their digital strategies. Our data indicates that there is still tremendous room for further growth in the online world.
2 - Embrace Constant Innovation: Coca-Cola India's planned expansion strategy, centered around innovation and diversification, provides a roadmap for brands. Continual reinvention is crucial to stay ahead in this ever-evolving market. For instance, Coca-Cola introduced new flavor variants and packaging formats, such as limited edition seasonal flavors or eco-friendly packaging options, showcasing their commitment to innovation and meeting evolving consumer preferences.
3 - Monitor Market Dynamics: Thums Up's rise to a 20% market share in India's soft drink sector despite fierce competition from Pepsi and Coca-Cola underscores the importance of understanding the market. To tap into growth opportunities, brands should diligently analyze market trends and consumer preferences. It is crucial for brands to keep pace with or exceed the market growth rate to maintain their competitive edge and capture a larger share of the expanding market. This requires proactive monitoring of market dynamics and swift adaptation to changing consumer demands and preferences.
4 - Celebrate Local Identity: Thums Up's success lies in maintaining its authentic Indian character, resonating deeply with local consumers. Brands should leverage the power of localization to establish a stronger connection with their audience. For example, Coca-Cola India has been focusing on beverage localization, expanding its portfolio of ethnic drinks, manufacturing products in India, and sourcing local ingredients [3]. By promoting regional languages in packaging labels and marketing campaigns, brands can enhance their hyper-local strategies and better resonate with the diverse Indian market [4].
5 - Harness Power of Collaboration: Thums Up's collaborations with celebrities and major events have contributed to its popularity. Strategic partnerships and collaborations can be effective strategies for beverage brands to expand their reach, increase brand visibility, and tap into new customer segments. By collaborating with influencers, celebrities, local artists, or prominent events, beverage brands can leverage their existing fan base, gain credibility, and generate buzz around their products. Additionally, partnerships with e-commerce platforms, food delivery services, or other relevant online platforms can provide opportunities for increased exposure and accessibility.
By incorporating these strategies into your business approach and continuously tracking your progress through data-driven decisions, any beverage brand, regardless of size, can strive to achieve sustained growth and establish a strong market presence. Remember to stay true to your unique identity and leverage the wealth of opportunities presented by the online world.
At Dashmote, we're committed to helping businesses navigate challenges and succeed in the digital marketplace. As the leading big data and AI analytics company in the F&B industry, we empower brands to make strategic decisions based on comprehensive analysis and valuable insights into the food delivery market and F&B trends.
Ready to advance your online business? Get in touch with our team at sales@dashmote.com. Together, let's build a strong online presence for your Food & Beverage business.
For more strategies for brands that aim to leverage on cultural preferences in the digital landscape, we recommend our article on Key Insights and Strategies for Food Delivery During Ramadan.
Prepare for a fascinating journey into the world of fizzy drinks within the United Kingdom's top food delivery franchises. We will uncover exciting rivalries, surprising prices, and partnerships that you never heard about. From the fast-food giants like McDonald's and Subway to the finger-lickin' good KFC, join us as we explore the refreshing drinks that make these places even more enjoyable. Get ready to sip, savor, and discover the secrets behind your favorite franchise beverages in the UK.
Franchising has become the backbone of the UK's booming food delivery industry. Our analysis focuses on the digital storefronts (DSF) on world-renown platforms such as Uber Eats, Just Eat, and Deliveroo. Excluding coffee-based franchises like Starbucks and Costa Coffee, Subway appears like the undisputed king of franchises with a staggering 5,100 DSFs. Next in line, the golden arches of McDonald's shine brightly with around 3,300 DSFs, followed closely by chicken paradise KFC with approximately 2,600 DSFs. If you are fond of pizza, then Pizza Hut and Papa John's won’t leave you disappointed with their 2,000 and 1,500 DSFs respectively. Joining the food frenzy, the flame-grilled wonders of Burger King are available in around 1,400 DSFs, and the globally-known peri-peri chicken franchise, Nando's, with about 800 DSFs. In addition, emerging franchises like German Doner Kebab, Taco Bell, and Five Guys bring their own flavors to the mix, adding around 370, 350, and 300 DSFs, respectively, to the food delivery extravaganza.
Now, let's dive into the heart of the battle and uncover the secret alliances between the top ten franchises and the beverage giants, Coca-Cola and Pepsi. These effervescent powerhouses have chosen their sides, and the battlefield is set.
Leading the charge, we have Coca-Cola, partnering with heavy hitters like McDonald's, Burger King, Nando's, and Five Guys. McDonald's, famous for its mouthwatering burgers and crispy fries, has joined forces with Burger King, creating a sparkling symphony that bridges the rivalry between the fast-food titans. Nando's, renowned for its fiery peri-peri chicken, and Five Guys, the burger joint extraordinaire, also proudly serve up the refreshing goodness of Coca-Cola beverages.
On the flip side, we have Pepsi, the challenger, supplying Subway, KFC, Pizza Hut, Papa John's, and Taco Bell with its irresistible bubbly creations. Interestingly, all the franchises under the Yumyum parent company - KFC, Pizza Hut, and Taco Bell - have embraced the Pepsi revolution, displaying a united front within the company. Subway, the sandwich maestro, and Papa John's, the pizza connoisseur, also hop on the Pepsi bandwagon, adding a twist to their already tantalizing menus.
But wait, there's a twist in the tale! German Doner Kebab stands as a neutral ground, catering to the diverse tastes of its customers by offering both Coca-Cola and Pepsi products. It's a win-win situation for the kebab aficionados who can choose their bubbly allegiance!
Now that we've unveiled the alliances, let's delve into pricing. Brace yourself for surprising discoveries about the cost of indulging in a refreshing Pepsi or Coca-Cola drink at these popular eateries.
When it comes to affordability, Subway Fountains retail park in Tunbridge Wells takes the crown. Just Eat offers a delightful deal: a 500ml bottle of Diet Pepsi for just £0.99. But hold your cola horses! We stumbled upon an eye-catching anomaly during our quest. Brace yourself for the most expensive drink we found on Just Eat, listed at Subway on 2 Graham Street in Airdrie, offering a 1500ml bottle of Pepsi for an astonishing £123.79. While this outrageous price is likely an error, it adds a touch of excitement to our adventure. Setting anomalies aside, the priciest non-alcoholic cola among the franchises can be found at a Subway in Tamworth, where a 1.5-liter bottle of Pepsi will set you back £5.39, once again via Just Eat.
Shifting our focus to the realm of Coca-Cola within these franchises, the pricing landscape takes a different twist. Prepare your taste buds for a rollercoaster of flavors and prices! The most expensive Coca-Cola product awaits at Burger King, where a 500ml bottle will cost you £3.29 across multiple platforms. But, for those looking to enjoy a Coke on a budget, McDonald's is your go-to place. Head to the Northampton location via Deliveroo, and you can secure a refreshing 200ml fountain drink for a mere £1.09.
In our daring exploration of the beverage offerings within the UK's top food delivery franchises, we have unveiled captivating insights and surprising pricing details. It's remarkable to see the variety in sizes, packaging, and prices that each franchise brings to the table, quite literally! From the pocket-friendly 500ml bottles of Diet Pepsi for just £0.99 at Subway Fountains to 1.5-liter bottles of Pepsi priced at £5.39 at a Subway in Tamworth, the range of options is as vast as the taste buds they satisfy. And let’s not forget the astonishing anomaly of £123.79 price tag for a 1500ml bottle of Pepsi, reminding us that surprises can be found in the unlikeliest places. These diverse beverage choices and their diverse offerings truly add to the uniqueness and enjoyment of each franchise, making every sip an adventure itself. So, the next time you order your favorite meal, take a moment to appreciate the different sizes, packaging, and prices that make the beverage experience at these franchises a delightful adventure.
At Dashmote, we're committed to helping businesses navigate challenges and succeed in the digital marketplace. As the leading big data and AI analytics company in the F&B industry, we empower brands to make strategic decisions based on comprehensive analysis and valuable insights into the food delivery market and F&B trends.
Ready to advance your online business? Get in touch with our team at sales@dashmote.com. Together, let's build a strong online presence for your Food & Beverage business. For more insights into curious pricing stories in the digital market dynamics, we recommend our article The Global Phenomenon of Abnormal Pricing in the Online Food & Beverage Industry.
The Coca-Cola Corporation (KO) and PepsiCo (PEP) have been long-term competitors in the global non-alcoholic beverage industry. Both two powerhouses have a large global presence, controlling a number of brand names that are recognized worldwide each. In the US, KO and PEP alone controll around three-quarters of the soft drink and beverage industry. KO had a US market share of 46.3% in carbonated soft drinks in 2021, followed by PEP with a 25.6% US market share[1].
Coca-Cola has been the market leader since 2004[2]. With a brand value up 7% in 2022, Coca-Cola once again was named the world’s most valuable soft drink brand with a brand value of US$35.4 billion[3]. Pepsi ranked second, with a brand value of US$21 billion in 2022. With similar business models and target markets[4], the rivalry between them, which is typically known as the “cola wars'', has never stopped since the brands spanned the globe. In this article, we investigate the competition between the world’s largest beverage brands in the global food delivery industry. We provide insights into the global picture of the prevalence and growth of Coca-Cola and Pepsi on food delivery platforms in 2022.
By partnering with delivery aggregators for combo meal deals and marketing collaborations, both brands strive to benefit from the growth of food delivery platforms. With a rich 129-year-long history, Coca-Cola is still the most consumed soda in the world. It has a staggering 10.000 products consumed every second across 200 countries. Coca-Cola is also the most well-known brand on global food delivery platforms.
Dashmote’s data shows that Coca-Cola outperforms Pepsi in all five countries. It has a penetration rate that varies between 48% to 82% on food delivery in Q3, 2022. Pepsi penetrates 11% to 34% of the beverage market on food delivery. In Canada, the difference in penetration rates between the two brands is the smallest, which is around 15 percentage points. In France, however, Coca-Cola has a penetration rate that is around seven times higher than Pepsi.
Despite the domination of Coca-Cola on food delivery across five countries, Pepsi, another iconic and world-leading beverage brand, is quickly catching up. Dashmote’s data reveals the YTD growth rate of the number of digital storefronts selling Coca-Cola/Pepsi on food delivery across five countries. Pepsi has a strong average YTD growth rate of 12.2% on food delivery. This is almost double than 6.5% for Coca-Cola. Surprisingly, the growth of Pepsi outpaces Coca-Cola in France, the US, Canada, and Australia. The growth rate of Pepsi was the highest in Australia in 2022 (23%).
Both brands faced disruptions in consumer consumption patterns during the pandemic. They also face fierce competition from the growing market of energy and nutritional drinks. Actions taken by the brands to overcome these challenges include reducing sugar in their drink offerings, improving environmental sustainability in packaging and recycling, and partnering with food delivery platforms to increase sales during reductions in social gatherings. By having a strong presence and engagement in the digital space, Coca-Cola and Pepsi can have additional opportunities to adapt their brands to the ever-changing consumer habits.
Dashmote is the leading big data and AI analytics company in the food & beverage industry. We help F&B enterprises by empowering them to track and analyse publicly available data to making strategic decisions. Do you want to know more in retrieving market insights across food delivery and F&B?
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