- 2 ngày trước
Danh mục
🤖
Công nghệPhụ đề
00:00Coke versus Pepsi is among the biggest, most direct, most long-lasting, most competitive
00:12rivalries in business history. You would not even believe how much has been going on here.
00:17These are both companies that are probably bigger than you may realize. Fortune ranks
00:21both of them in the top 100 biggest public companies in the United States. Two years ago,
00:26I made a video about the size of Pepsi, and then the following year, I did the same for Coca-Cola.
00:31I recommend you check them out if you want to get a fuller story behind these companies. However,
00:36in both of those videos, I intentionally avoided making direct comparisons between the two,
00:41because I felt there were so many that they needed to be in their own video,
00:44and that is why I am here today. You might be surprised to hear that when measured by sales,
00:49PepsiCo is almost exactly twice as big as the Coca-Cola company. But I do need to point out
00:55that 58% of Pepsi's sales come from various food brands. Most notably, they're the owners of
01:01Frito-Lay and Quaker Oats, both of which may also be bigger than you realize. Whereas Coca-Cola is
01:07laser-focused on beverages. So if you do a little math, you'll see that Coca-Cola does have a bigger
01:13share of that market, which is where the entire rivalry takes place. I won't be talking about
01:18anything except beverages today. So what I want to do here is break it down by outlining five soda
01:24categories in which they have been competitive. I mean, most of us do view them as soda companies
01:28after all. And I want to follow that by outlining the competition in five other beverage categories
01:34outside of soda. I promise you, it is all going to make perfect sense as I go, starting off with
01:39colas, because this is where everything originated. Coca-Cola was the original. It was invented by John
01:45Pemberton way back in 1886, and once it started gaining popularity, about seven years later,
01:52Caleb Bradham formulated Pepsi-Cola to compete with it and hopefully attract its own customer base.
01:58I think it's interesting that neither of these inventors benefited much from their creation. It
02:02was really more of a curse than anything else. Pemberton spent five years struggling to get the
02:07product off the ground before selling it for an estimated $2,300. By the way, it is worth well
02:13over $200 billion today, similar to PepsiCo. And Bradham made some poor business decisions that
02:19forced him to file for bankruptcy and go back to his old job as a pharmacist. It was the subsequent
02:25owners and leaders responsible for building these brands and making them popular. By the 1930s,
02:30Coca-Cola was just light years ahead of Pepsi. They were not even in the same league. But over the next
02:3650 years or so, Pepsi steadily gained a lot of ground by specifically trying to draw customers
02:41away from Coca-Cola. During the Great Depression, they started selling Pepsi in 12-ounce bottles
02:47for five cents each. Compared to Coke, it was twice as much soda for the exact same price.
02:53They advertised the value they were offering with the first-ever jingle to be played nationally over
02:57the radio, and it was enough to convert a lot of customers over to Pepsi. In the 1960s,
03:02Pepsi started targeting a younger demographic with their Pepsi Generation campaign. It was basically
03:08framing Coke as the classic drink for older people, whereas Pepsi was the new hip drink for younger
03:13people. Again, it was effective in drawing customers away from Coca-Cola. In the 1970s,
03:19they started the famous Pepsi Challenge, asking people to compare Coke and Pepsi in a blind taste
03:24test, where most of the time people did say that they preferred Pepsi. Now, potentially, that may have
03:30been because Pepsi was sweeter. With only a little sip, people may have been having a positive reaction to
03:35that sweetness, but none of it really matters, because the public saw that people preferred it
03:39on those commercials, and by the 1980s, Coke and Pepsi were practically neck and neck with each other.
03:44Coca-Cola was promoting themselves as the real thing, seemingly a way to convey that they were
03:49the trusted original, while Pepsi is a phony copycat, I guess.
03:53Coca-Cola says it's the real thing, but Pepsi believes that when it comes to colas,
03:58the only real thing is taste. In what seems like kind of a panic, Coca-Cola changed their
04:04recipe to be a little sweeter and therefore more like Pepsi, and rebranded the drink as
04:09New Coke. Understandably, the public was upset with them for taking the original Coke off of
04:14the shelves, and Pepsi took advantage of that by making commercials pretty much making fun of their
04:18decision. The traditional recipe was brought back only months later as Coca-Cola Classic, and upon
04:24the return, the sales of it jumped higher than they had ever been before. Again, I have a whole video
04:28about it, but in the end, it did help Coke pull ahead of Pepsi, and to this day, Coke remains the
04:33much more popular of the two colas. So even though Pepsi has made some impressive gains on them, it's
04:39hard to deny that Coke has been the overall winner in this category. Next up on the list, I want to
04:44compare diet colas. And by the way, this list is going to start moving much faster at this point.
04:50In the 1960s, diet sodas were becoming the next big thing, mostly fueled by the popularity of
04:55Diet Right from the RC Cola company. It motivated Coke and Pepsi to introduce their own diet sodas.
05:01But there was concern about diluting the brand, so instead of calling it Diet Coke, they came out
05:07with a separate soda called Tab. But only a year later, Pepsi did in fact introduce Diet Pepsi, and
05:15despite having the Pepsi brand attached to it, Tab proved to be the better-selling diet soda. Then,
05:20in 1982, remember back when Coca-Cola was losing overall market share and looking for different
05:25ways to shake things up, they finally introduced Diet Coke, the second product to ever have the Coke
05:30branding on it. Not surprisingly, it was a big success, one of the biggest product launches ever,
05:36and for a few years, starting in 2011, Diet Coke was actually outselling regular Pepsi. So,
05:42again, Coke has been the winner in this category.
05:45The next one to compare is Lemon Lime. See, in the early 1960s, the success of 7-Up,
05:51which was from a different company, motivated both Coke and Pepsi to come out with their own
05:56Lemon Lime sodas. Pepsi launched one called Team, with two Es, while Coke introduced their iconic
06:02Sprite. I don't think I have to tell you that Sprite was by far the more popular of the two,
06:06so when everything was escalating in the 1980s, Pepsi couldn't just sit back and let Sprite
06:11control the Lemon Lime market, so they discontinued Team and introduced Slice. The big
06:17thing that made it stand out from the others was that it was made from 10% fruit juice. It was thought
06:22to be such a revolutionary idea, just putting fruit juice inside of soft drinks, and people
06:26responded to it. Slice was starting to gain some traction. Now, this gets interesting because Coca-Cola
06:31happened to already own a popular brand of fruit juices called Minute Maid. So, the following year,
06:37they came out with a line of Minute Maid branded sodas that also contained 10% fruit juice. So,
06:43then people were choosing between Slice, which was a brand that didn't even exist a couple years
06:47earlier, and Minute Maid, a brand that had been well-known and trusted for decades. People quickly
06:52started shifting away from Slice, and it turns out that the 10% fruit juice thing was more of a gimmick
06:57anyway. People stopped caring about it, and by the end of that decade, there were no juice in any of
07:01these sodas. Without a gimmick, Slice struggled to compete with Sprite, I guess for the rest of
07:06its existence. Pepsi replaced it with Sierra Mist in the year 2000, which also struggled against
07:11Sprite, until it was replaced by Starry in 2023. So, again, Pepsi has struggled to compete against
07:17Coke in this category. Next up is Cherry. Not too much to say about it, but again, near the height of
07:23the Cola Wars, in 1985, Coca-Cola introduced Cherry Coke, the third product to ever carry the Coke
07:30name. The following year, Pepsi expanded their line of Slice sodas to offer other fruit flavors,
07:36including Cherry, but since the Slice brand was struggling so much, they quickly discontinued
07:41the Cherry flavor when they introduced Wild Cherry Pepsi only two years later. That's about all I have
07:47to say about Cherry Colas. It was yet another battle between the two that, yet again, I would have
07:52to say it was won by Coke. Finally, finishing off this list, it's a big one, Citrus. For this,
07:57I'm talking about those highly caffeinated, high-energy, extreme drinks, much like Mountain Dew. It was a
08:04comparatively small brand when it was acquired by Pepsi in 1964 that they quickly built into a national
08:09success. Sales of it quadrupled within the first few years of owning it. Early on, their advertising
08:15was centered around these, I guess you would say, hillbilly-type characters, being originated from
08:20Tennessee, but in the 1970s, they started targeting more active, younger people, and that helped it
08:25become the fastest-growing soft drink in the country. In the 1990s, it became the most popular
08:30non-Cola soft drink in the U.S., right as they became an early sponsor of the X Games. It had
08:35become a multi-billion dollar brand, and you better believe that Coca-Cola wasn't going to sit back and
08:40let that happen unanswered. So, in 1997, they introduced Surge as a direct competitor. Rumor has it that,
08:48internally, they were developing it under the name Mountain Dew Killer. Much like Mountain Dew,
08:53it was highly caffeinated, bright green in color, and advertised to be high-energy and extreme.
08:59Coca-Cola was saying that it was their biggest launch since Diet Coke, spending 50 million dollars
09:04to advertise it that year, including a pricey Super Bowl ad and millions of samples and coupons.
09:09I think it's funny that when it was first announced, a spokesman for Pepsi said,
09:12bring it on. We look forward to the competition. It shows how confident they were, and it seems to
09:17have been justified, considering Surge was mostly discontinued after five years,
09:22and Mountain Dew remains a massive brand. In 2005, Coca-Cola tried again with a similar
09:27product called Vault that was also discontinued after a few years. Yeah, so the tables are turned
09:33on this one a bit, where Pepsi is the company with the more popular, longer-lasting product.
09:38Alright, this is going to be a long video, but to give a fuller picture of this rivalry,
09:42I think it's important to run through some of the non-soda categories in which they have been
09:45competing. These are some of the more unexpected areas, but still very much on a large scale.
09:51Starting off with Iced Tea, in 1991, Pepsi announced a joint venture with Lipton,
09:56the biggest tea company in the country, where they have since produced billions of ready-to-drink
10:01teas under the name Brisk and Pure Life. The following year, not coincidentally,
10:06Coca-Cola announced a joint venture with Nestle, where they have since made products under the
10:11names Ness Tea and Nescafe. That venture was dissolved in 2018, while the one with Pepsi
10:16continues, but Coca-Cola has also been the owner of the brands Gold Peak Tea, Fuse, and Honest Tea.
10:22Another category would be Water. In the late 1990s, bottled water was considered to be the fastest
10:28growing segment in the industry, so Pepsi started selling Aquafina nationally, and it has since become
10:34the best-selling brand based on volume. And shortly after, not surprisingly, Coca-Cola launched
10:39their brand called Dasani, that also became very popular despite some criticisms and setbacks.
10:46In 2007, Coca-Cola also bought the company behind the brands Vitamin Water and Smart Water, but more
10:51recently, the new big thing has been Sparkling Water. So in 2018, Pepsi launched Bubbly, that right
10:58away they expected to be their next billion dollar brand, and Coke responded two years later by
11:02launching AHA. Going back to the list, juices has been another big one. As I already hinted at,
11:08Coca-Cola bought Minute Maid all the way back in 1960, and 34 years later put a lot of money into
11:14introducing a new juice brand alongside it called Fruitopia. It took some time for Pepsi to respond to
11:20all of this, but they did it in a big way. In 1998, they bought Minute Maid's biggest competitor,
11:26Tropicana, for 3.3 billion dollars, their biggest acquisition ever at the time.
11:32The main distinction between them was that Tropicana was known for making juices that were
11:35not from concentrate, whereas everything Minute Maid made was from concentrate. In the early 2000s,
11:41Coca-Cola launched yet another brand called Simply Orange, but discontinued Fruitopia, and in 2021,
11:48Pepsi sold Tropicana for, oddly enough, exactly what they paid for it, along with some other brands,
11:54so the battle on that front has calmed down quite a bit for the moment.
11:58Next up on the list is sports drinks. I know, it just keeps going, right? But these two are,
12:03by far, the biggest makers of sports drinks. In the 1980s, Coca-Cola introduced Powerade,
12:09that was meant to compete against the already-dominant Gatorade that was made by a separate
12:14company. In the 1990s, Pepsi introduced Allsport to compete against the other two, but let's face it,
12:20Powerade and Allsport have never done a great job when compared to Gatorade. And trust me,
12:25it is not often that Coke and Pepsi are trailing far behind a third more successful product,
12:30but it's because they were both focused on other areas, and by the time they started focusing on
12:34sports drinks, Gatorade was already way too far ahead. By 2001, Gatorade controlled 86% of the market,
12:42compared to 11% for Powerade, and 3% for Allsport. Pepsi was clearly struggling there,
12:48so their plan was to sell Allsport and buy Quaker Oats in their new biggest acquisition ever,
12:55because they were the owners of Gatorade. Yeah, so ever since then,
13:00Pepsi has been behind Gatorade, that has obviously maintained a distant lead over Coca-Cola's Powerade.
13:05Though, in 2021, Coca-Cola did close that gap quite a bit when they bought Body Armor for $5.6
13:12billion in their biggest brand acquisition ever. So even though Pepsi remains on top in that market,
13:19Coca-Cola has clearly not been giving up. The last category that I want to compare today is
13:24energy drinks. They're both the owners of multiple brands of energy drinks, but most notably, in 2015,
13:30Coca-Cola bought a minority stake in Monster, where they combined their existing energy drinks. In 2020,
13:36on the other end, Pepsi bought Rockstar for $3.85 billion, so yet again, it has been a multi-billion
13:44dollar battle between these two. Let me know in the comments, what do you think of this extensive
13:49rivalry between Coke and Pepsi? Does it go much deeper than you thought it did? Because it has been
13:54happening in areas that aren't necessarily obvious. I mean, it's not just Coke versus Pepsi, it's Surge
14:00versus Mountain Dew, or Dasani versus Aquafina, or Gatorade versus Powerade, and so much more than that.
14:06Also, I have made quite a few videos surrounding these topics already, but I think there is still
14:11so much more that could be talked about in detail. Maybe Mountain Dew or Rockstar? I don't know,
14:16let me know what you would be interested in hearing about, and any other thoughts you have about Coke,
14:20or Pepsi, or anything else in this video, leave them in the comments. I'd like to hear what you have
14:26to say. Thank you for watching.
Được khuyến cáo
11:14
|
Sắp Tới
0:12
4:59
4:11
11:11
10:20
14:03
11:50
11:52
11:00
12:30
12:00
11:37
12:02
12:44
11:36
11:21
12:26
12:07
Hãy là người đầu tiên nhận xét