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Essentially these are basic commodities. The producers of these products have no power over the pricing hence the suppliers in this industry are weak.
The major channels for the Soft Drink industry (Exhibit 6) are food stores, Fast food fountain, vending, convenience stores and others in the order of market share...
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The profitability in each of these segments clearly illustrate the buyer power and how different buyers pay different prices based on their power to negotiate.
Food Stores: These buyers in this segment are some what consolidated with several chain stores and few local supermarkets, since they offer premium shelf space they command lower prices, the net operating profit before tax (NOPBT) for concentrate producer’s in this segment is $0...
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