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Topic: Miscellaneous
Number of pages / Number of words: 3 / 818
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In 2004, among national concentrate producers, Coke and Pepsi had more than the 74% of the US CSD market in sales volume. The bottler business is a network of franchises with exclusive geographic sales operations in a defined territory. The concentrate business involves far less capital investment, as a concentrate plant costs about $25 to $50 million...


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Compare this with a bottling plant, which run between $40 and $75 million. The bottling business involves a higher cost of sales (60%), significant selling and delivering expenses (25% of sales), and generally high capital investment. In the concentrate business, the cost of sales is only 17%, with a 2%-of-sales delivery cost...


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