Making Financial Headlines · Page 4
Soda Rivalry Reaches the Cup Beside the Chicken
· New York time
KFC is switching to Coke, another setback for Pepsi as some analysts grow more concerned about its competitive position, MarketWatch reports. A restaurant beverage choice can put a brand in front of customers who arrived thinking primarily about food. The cup is small, but the distribution question is not. Soft drink competition takes place in several arenas at once. Advertising can build preference, shelves can offer choice, and a restaurant's selection can determine which option is immediately available. A consumer may have strong views about cola and still order whatever accompanies lunch. That makes access a practical form of brand power. It also complicates sweeping conclusions about taste. A drink selected alongside a meal need not represent a tiny, fiercely contested referendum conducted at the fountain. Sometimes the winning campaign platform is simply being there when someone asks for a drink. For Pepsi, the switch adds a concrete distribution development to the competitive concerns analysts are discussing. Its wider significance depends on the rest of the business, not just one restaurant name. For customers, the soda wars can look remarkably peaceful: a tray, a lid and the hope that neither requires further negotiation. The corporate battle becomes visible only when the familiar color beside the chicken changes.
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