Explain in detail:

1) Why historically has the soft drink industry been so profitable?

2) Compare the economics of the concentrate business to that of the bottling business. Why is the profitability so different?

3) How has the competition between Coke and Pepsi affected the industry's profits?

4) How can Coke and Pepsi sustain their profits in the wake of flattening demand and the growing popularity of non-carbonated soda drinks?