MarketLine Blog

Posts about Soft Drinks

UK sugar tax – Attempts to curb rising levels of obesity


The UK is the most obese country in Western Europe, and the sixth most obese country in the world. Around 26.9% of the British population has a body mass index of 30 and above, according to the OECD report and the cost of treating ill health caused by obesity and related issues is rising fast, threatening the NHS budget. The government, long criticized for taking no action to tackle this issue, decided to introduce a Soft Drinks Industry Levy, in the hope that the increased cost will stop people from… Read more

Tesco: Fallout from profit overstating continues


Yesterday (September 22), the UK’s largest retailer Tesco had to make the embarrassing and damaging admission that its first half profits had been overstated by some £250m (approximately $390m). Consequently, profits for the period are now expected to be around £850m (approximately $1,328.8m) rather than the originally-reported £1.1bn (approximately $1.7bn); quite a difference. The fallout has been catastrophic and has prompted some serious questions that have led to staff suspensions, a delay in publishing its first half results, and the intervention of legal and accounting firms. Following the shock announcement,… Read more

SodaStream: Why it could have been a great buy for Coca-Cola or Pepsi


Although the rumors of a potential acquisition of SodaStream International Ltd. (SodaStream) by PepsiCo, Inc. (Pepsi) have recently been denied, the company remains a threat to both Pepsi and fellow soda incumbent The Coca-Cola Company (Coca-Cola). Crucially, it still has the potential to further disrupt the soda market through its challenge to traditional distribution models and enhancing consumer choice. However, the company’s razor/razorblade business model remains at odds with its competitors’, and would not have played well into either Pepsi or Coca-Cola’s long-term strategy. SodaStream’s focus on the environmentally friendly… Read more