Industry Analysis & Industry Trends
A weak retail environment and changing consumer trends have characterised the Soft Drink Manufacturing industry over the past five years, limiting substantial revenue growth. Despite these threats, the growing popularity of higher value sports and energy drinks, and an increasing focus on diet ranges have supported industry growth. As a result, industry revenue is forecast to increase at an annualised 2.4% over the five years through 2015-16. This includes projected growth of 2.2% in the current year, to reach $4.4 billion.
Over the past five years, domestic and global economic uncertainty has led to soft retail conditions and weak consumer sentiment, causing consumers to cut back on spending... purchase to read more
Industry Report - Starting a New Business Chapter
The Soft Drink Manufacturing industry has high barriers to entry and the level has increased over the past five years. The market power, scale and scope of operations, and brand equity of the major players raises barriers for new entrants. The ability to compete with existing industry operators, which have well-established distribution networks, requires significant investment. Coca-Cola Amatil's established distribution network is a strong source of competitive advantage.
Entry into the industry can occur through acquisition, as demonstrated by Asahi's purchase of Schweppes. Brand loyalty is also a barrier that new entrants must overcome. The major players undertake significant advertising and marketing activities due to the importance of their brands being household names... purchase to read more