Mexican Coca Cola

The economic recession caused many industries to decline and determined consumers to be more considerate with their spending. For example, the soft drinks industry in the United States witnessed a decline of more than 2 percent in 2009. However, with the recovering economy and raising per capita income, the soft drinks industry faces promising times. “The demand has increased considerably in 2010 supported by factors like surge in consumption of fruit beverages and rising spending on drinks” (http://www.reportlinker.com/p0487240/US-Soft-Drinks-Market-Analysis.html?utm_source=prnewswire&utm_medium=pr&utm_campaign=prnewswire). In this highly competitive market, Mexican Coca-Cola will likely be a product that will complement its United States counterpart. Besides package, one coming in a glass bottle and the other in an aluminum can or plastic bottle, the difference between Mexican Coca-Cola and Coca-Cola made in the United States is the sweetener used. While Mexican Coca-Cola uses sugar cane as a sweetener, its United States counterpart uses High-Fructose Corn Syrup. However Mexican Coca-Cola and Coca-Cola made in the United States are products that cater to different demographic segments.

Trends Impacting the Industry

One of the most important trends affecting the development of the soft drinks market is the changing demography of the United States. “According to the U.S. Census Bureau, profound shifts in the next few decades will leave [the United States] older and more ethnically diverse than ever before” (O’Rourke, 2010, p. 280). More interesting, is that “[b]y 2005, half of all Hispanics were under age 27, and one of every 5 children under the age 18 in the United States was Hispanic. […] Hispanics account for about half of the overall population growth in the United States since the turn of the century” (O’Rourke, 2010, p. 280). Experts also believe that by the middle of the twenty-first century, Hispanics will account for about a quarter of the United...