1 Create a graphical representation of Pepsico’s business, using the method described in Chapter 3. The American market for (non-alcoholic) beverages has traditionally been dominated by soft drinks, especially cola. However, the position of soft drinks has been under pressure for years, partly due to the pursuit of a healthy lifestyle and continuous attention to the dangers of obesity. The need for functional foods is also reflected in the market: consumers are looking for hydration, a good energy balance, or strengthening the immune system. Other product categories, such as sports drinks, fruit juices, and bottled water, are therefore on the rise. The following segments can be distinguished in this market:

n (Carbonated) soft drinks n Bottled water n Ready-to-drink (RTD) tea (such as iced tea)

n Energy, health, and sports drinks n Juices Carbonated soft drinks Sales of soft drinks have been declining for years. Consumers are increasingly buying drinks such as mineral water, fruit juice, and sports drinks instead of soft drinks. The downward trend continues: in 2021 there was another 5% decrease, to around 40 billion liters on an annual basis. In monetary terms, soft drink sales in the United States stabilized around a total of $136 billion. We are still talking about a lot of consumption: