Contributing to this industrial revolution among other industries wereManufacturing, Agricultural, Automotive, Chemical, Hotel, Banking BusinessServices, Real estate, Tourism and information Technology to name a few. But onsuch industry that has been holding onto its share of the market since itsinception note in the USA - its birthplace - but all across the globe as well asthe Beverage Industry. It has introduced icons that very few are oblivious to.The industry and its role in the Pakistan economy, the conditions under which itis working and the effects it has on the consumers is to remain the concern ofthis study.
According to Richard D. Brown and George J. Petrol (1986), thehistory of the Beverages industry start from 1886, when Atlanta chemist"Doe" Pemberton developed a reddish - brown syrup with a smidgen ofcocaine (for medicinal purposes) to compete with the many patent medicines andcure - all elixirs of that time. His company recommended it for the relief ofhangovers headaches, menstrual pains, and a host of other problem. One warmsummer day Pemberton took some syrup down to will is venerable at Jacob's DrugStore in Atlanta. An ounce of the mixture was put into a glass, which was thenfilled with water and ice, creating the first Coca-Cola.
The headquarters ofCoca-Cola, now listed by fortune as one of the 50 top corporations in the UnitedStates, is still in Atlanta, Georgia. The actual sale and distribution of thatmagic elixir - which, needless to say, on longer contains cocaine - is handledlargely by a number of independent bottlers. These bottlers buy syrup, mix itwith carbonated water, and distribute it to retailers in their area. The numberof retailers who sell Coke to the public almost exceeds counting.
In this way acompany with a magic formula but limited capital spread its name around thecountry and eventually around the globe. The organizational formula formerchandising apparently also had a bit of magic. But, of course, the productwas one that people wanted, which is perhaps the first law of success inmarketing. Coke had been successful in establishing a strong loyal consumerforce, on whom it still relies to this very day. Dong business was no sweat oncethe industry had set itself for good and the consumer’s tasted veered.Everything seemed to go smooth enough until hell finally broke loose.
Troublestarted creeping into the very foundations of coke who stated loosing a majorshare of its market. Thanks to Pepsi. With virtually the same history Pepsistarted gaining ground and proved to be an excellent example of howrazzle-dazzle advertising sharp marketing and an efficient distribution systemcan turn a loser in to a winner in a remarkably short period of time. Pakistantoday has a very competitive beverages market. Opportunities for this industryto establish itself firmly in this country were grim at first because of thecountry's low per capita income and because of the business' status depending onconsumer impetus.
But much of it was more or less the same when the businesstook a start in the USA as well. The Beverage industry has undergone arevolutionary change during the last couple of decades. The form of processingand the machinery used these days has developed and is very sophisticated.Automatic and computerized plants have been installed in the industry thusmaking it an industry which is dealing in million of gallons of beveragesyearly.
Pakistan Beverages, the bottlers for Pepsi, and Coke bottlers NationalBeverages claim that their primary goal is not to undermine the competition butto expand the market as a whole. Market expansion, in fact, seems to be thebuzzword these days in the beverage industry. Analysts believe the potentialmarket in Pakistan is though to be enormous because the country's per capitaconsumption is as low as 14 bottles per year. Compare this with a 120 bottlesper year in the Philippines, and the scope for expansion becomes more thanobvious. HISTORY OF PEPSI COLA It starts with a small drug store in NorthCarolina. This little store belonged to young chemist by the name of"DOC" BROADHAM.
He invented a drink that the customers called BROAD'Sdrink. In 1903, Bradham got its drink registered formally by the name of PEPSICOLA. He set his own company and kept its sales improving gradually. By 1909,more then 250 bottlers in different American states had been allowed to sellunder the PEPSI COLA license. PEPSI COLA was first sold in the standard size of6.5 ounces.
In 1932 PEPSI COLA took courage enough to introduce a bottle of 12ounces. In 1950 the PEPSI COLA'S formula had been changed by reducing itssweetness and calories and a new advertising campaign "Refresh withoutfilling" had been launched effectively. Under the supervision of thediligent sales staff and the Marketing experts, PEPSI COLA began setting newrecords of eminence. At 30 plants per year, new plants were established allacross the globe.
A new attractively designed bottle had been introduced in 1957in place for the 20 years old bottle, and the product line had been enhanced tointroduce the new flavors of TEAM & MIRINDA. Sindh Beverages (Pvt.) Ltd.,claim that PEPSI COLA today is available to more than a billion people in 153different countries which include the central independent states and China.Progress Report 1996-98 1996 Refranchised 655 restaurants Closed 379underperforming restaurants Restructured Pepsi-Cola International Enlistedstrong new bottler in Venezuela Created worldwide snack and beverage units Announced plan to sell non-core restaurant chains Repurchased 54 millionshares 1997 Spun off Pizza Hut, KFC and Taco Bell as Tricon RefranchisedNew Zealand restaurants via public offering Divested five non-core restaurantchains Divested PFS restaurant supply unit Received $5.5 billion inrestaurant disengagement proceeds Divested Syrena candy business in Poland Divested Gerber baby food business in Mexico Placed more than 150,000beverage coolers and vendors in the U.
S. Enlisted new bottlers forterritories in Brazil, Philippines, Japan and Scandinavia Renegotiatedbottler contracts to centralize fountain beverage distribution Expanded U.S.fountain beverage sales and service group Acquired Pehuamar snack business inArgentina Divested Obregon flour mill in Mexico Repurchased 69 millionshares 1998 Acquired Tropicana, world’s largest branded juice company Announced public offering of The Pepsi Bottling Group Launched new blue globelogo for brand Pepsi Launched WOW! fat-free snacks nationally in the U.S.
Launched Pepsi One, sweetened with Acesulfame K Acquired Smith’s SnackfoodsCompany, Australia’s market leader Acquired snack chip businesses inFrance, Holland, Belgium Divested BN biscuit business in France Enteredjoint venture to become snack chip leader in South and Central America Acquired Barcel, Chile’s second-largest snack company Expanded stake inTasty Foods Egypt Acquired bottling operations in four U.S. states and twoCanadian provinces Placed 190,000 beverage coolers and vendors in the U.S. Acquired Cracker Jack snack brand Agreed to sell Polish chocolate and biscuitunits Consolidated Pepsi and Frito-Lay U.S.
media buying Repurchased 59million shares HISTORICAL BACKGROUND OF SINDH BEVERAGES The plant had beenestablished in Phulali in 1974 at first, when it operated with the help of a fewdonkey carts for distribution of its products. It had been upgraded in 1988 andhad moved to the rather industrial SITE area.
