Tariffs become a new front line in the cola war between Coke and Pepsi

Tariffs become a new front line in the cola war between Coke and Pepsi

The age-old battle in sales between two soft drink giants is resurfacing in a bit of an unexpected place. The Trump tariff plan is affecting both PepsiCo and Coca-Cola Co., but seemingly one more than the other. How would the companies be impacted by tariffs? The Wall Street Journal reports that the specific taste of Coke or Pepsi all comes down to the concentrate, in other words, the secret ingredients that each uses to make its signature soda.…

Pepsi was already losing the war of the tails. In the commercial war it doesn’t go much better. Everything is reduced to where PepsiCo and Coca-Cola produce the secret formula concentrates that constitute the essence of their sodas. The concentrates are made in special facilities and then sent to the bottling plants. There, they are combined with water, bubbles and sweetener to make the soda. More than 50 years ago, PepsiCo began to produce the …

Trump's tariffs affect all industries. In the fiercely competitive beverage market, Coca-Cola and Pepsi are in very different situations. In the long-lasting "cola war", Pepsi was defeated by Coca-Cola, and Pepsi's situation has not improved in terms of tariffs.

Trump's customs policy confuses brand competition – not advertising strategies, but supply chains decide on market success. Why Dr Pepper rises, loses Pepsi and even stumbles Levi. The article Trump's customs policy: When supply chains hit brands first appeared on sales.

PepsiCo manufactures almost all of its American soda concentrate in Ireland, unlike Coca-Cola, which will not be subject to the 10% customs duties decided by Donald Trump.