15/03/2024

The Cola War - Coke vs Pepsi


The Cola Wars

The Cola wars are the long-time rivalry between soft drink producers The Coca-Cola Company and PepsiCo, who have engaged in mutually-targeted marketing campaigns for the direct competition between each company's product lines, especially their flagship colas, Coca-Cola and Pepsi. Beginning in the late 1970s and into the 1980s, the competition escalated until it became known as the cola wars.

In 1886, John Stith Pemberton, a pharmacist from Atlanta, Georgia, developed the original recipe for Coca-Cola. By 1888, control of the recipe was acquired by Asa Griggs Candler, who in 1896, founded The Coca-Cola Company. Two years later, in 1898, Caleb Bradham renamed his "Brad’s Drink" to "Pepsi-Cola," and formed the Pepsi-Cola Company in 1902, prompting the beginning of the cola wars.

The two companies continued to introduce new and contemporary advertising techniques, such as Coke's first celebrity endorsement and 1915 contour bottle, until market instability following World War I forced Pepsi to declare bankruptcy in 1923. In 1931, Pepsi went bankrupt once more, but recovered and began selling its products at an affordable 5 cents per bottle, reigniting the cola wars through to today. Pepsi offered to sell out to Coca-Cola following both of its bankruptcies during this time, but Coca-Cola declined each time.


The Cola Wars Timeline: What Went Down

The incredible Cola Wars is stuff legends are made of. For more than a century, The Coca Cola Company and PepsiCo have been feuding through television advertisements and marketing campaigns to outdo the other. The bouts of intense competition between the two soda brands in the peak of the era went so far as to feature taste tests to sway the consumers.

The complex relationship Coca-Cola Company and PepsiCo began in the 1980s, when Pepsi began running television commercials around the country, in what they called the Pepsi Challenge.  At malls, shopping centers, and other public locations a Pepsi representative set up table with two white cups: one marked M and one marked Q. Shoppers were encouraged to taste both drinks and select the one they prefer. The general consensus leaned towards the cup marked M, and M would be revealed as Pepsi. Coke performed its own tests and discovered the same thing. Since Pepsi was sweeter than Coke, the devastated executives at the Coca-Cola Company decided to change its formula. This was New Coke; and it horribly backfired.

What makes the Cola Wars so interesting is that their products are identical. They’re brown, sugary, and carbonated beverages. They don’t taste that different. So why jump through the hoops to generate brand loyalty? The Cola Wars timeline will give you a look at some of the biggest spats between the twin American icons:
  • KAMIKAZE MARKETING - When Crystal Pepsi was released, Coca-Cola released a competitor called Tab Clear as an intentionally bad product to destroy the Crystal Pepsi brand. The ‘kamikaze’ strategy, where Coca-Cola would create a terrible tasting beverage to create consumer confusion, was successful and both the products were dead 6 months later.
  • A PLOT TO BETRAY COKE - In 2006, three agents tried to sell Coca-Cola’s secret ingredient to Pepsi. Undercover FBI officers posted as Pepsi executives and pretended to broker the deal which resulted in the arrest of the three agents.
  • COMPETING FOR BURPS IN MEXICAM SHAMANS - When PepsiCo discovered that Mexican shamans used Coca-Cola in their religious rituals to heal worshippers, they offered commissions for using Pepsi instead. Coca-Cola found out and they began paying; and thus the Mexican shamans became a battleground for Cola Wars between Pepsi and Coke. Soon rival religious group were formed based on which soft drink they use.
  • RUM AND COLA? - Rum and Coke or Rum and Pepsi? Or Jack and Pepsi? A flavor scientist could tell you which one, and why. Or, perhaps, a songwriter?
  • COLA WARS IN SPACE - In the summer of 1985, the two soda brands reached peaked rivalry by taking their marketing spat into outer space. When Pepsi got wind of Coca-Cola’s gravity-free can for NASA, it started developing a space can of their own. The spat got so ugly that several Senators and even the White House got dragged into it. The shuttle mission finally launched with four cans of Coke and four cans of Pepsi aboard.


This Is the Real Flavor Difference Between Pepsi and Coca-Cola
No, your taste buds aren't playing tricks on you! Despite their similar qualities, there is an actual difference

Pepsi and Coca-Cola may be one of the most controversial drink debates of all time. A strong divide between diehard Coke drinkers and Pepsi enthusiasts has always existed. Yet, the two drinks are practically identical in every way from their caramel syrup color to their ingredients. Both sodas contain sodium, sugar, carbonated water, high fructose corn syrup, phosphoric acid, caffeine, and natural flavors.

Despite their numerous similarities, Pepsi and Coca-Cola still give people two vastly different flavor experiences, which explains why people prefer one over the other. In Blink, a book about decision making and thinking, by author and journalist, Malcolm Gladwell, he writes, “Pepsi is sweeter than Coke and is also characterized by a citrusy flavor burst, unlike the more raisiny-vanilla taste of Coke.” Don’t miss how we settled the cola taste-test debate.

In fact, a 12 ounce can of Pepsi contains one thing Coke does not—citric acid. In addition, Pepsi also has two more grams of sugar than Coke. These two subtle differences give Pepsi its sweet, citrus-like flavor that people either love or loathe. Plus, the additional 15 mg of sodium in a can of Coke may explain why it tastes more like a club soda with a toned-down sweetness. Next, find out the fascinating origins of soda you never realized.


How to Tell the Difference Between Coke and Pepsi

Perhaps because they are so similar, Coke and Pepsi have been in a fierce competition for fans for decades. Learning how to taste the difference between these two iconic sodas is great as a parlor trick or simply for personal enjoyment. Keep in mind, however, that the differences are minor — in blind taste tests, most people can't tell which is which:
  • Judging Its Taste - Judge its flavor qualities. Coke and Pepsi taste quite similar, but their flavors aren't exactly the same. Start by taking a sip of your drink. Concentrate on the flavor — ask yourself, "What else does this taste like?" Everyone's sense of taste is different, but a few popular comparisons are as follow - Coke is often said to resemble raisins with a hint of vanilla & Pepsi is often said to resemble citrus fruit.
  • Judge its intensity. A soda's flavor isn't just about what other things it tastes like — it's also about how those tastes feel in - your mouth. Take another drink of your soda. Concentrate on how the soda feels as it moves over your tongue and down your throat. Again, everyone's opinion is different, but some common observations are below - Coke has a flavor that many define as "smoother." The flavor rises gradually and recedes gently. It should go down your throat easily & Pepsi has a flavor that many define as "sharper." The flavor has a stronger "attack" — it rises in a sudden "burst" of flavor. It should be a little more intense as it goes down your throat.
  • Judge its sweetness - Take another drink. This time, concentrate on the sugar content in the drink. Is the sweetness overpowering, or is it more subtle? This can be difficult to judge unless you have both drinks in front of you so that you can compare them. According to official nutritional information - Coke has a little less sugar, so it is slightly less sweet & Pepsi has a little more sugar, so it is slightly more sweet.
  • Feel the carbonation level - Hold a sip of the soda in your mouth for a few seconds. Concentrate on the feeling of the carbonation bubbles. Is the drink quite fizzy, or slightly "flatter" than you're used to in a soda? This, too, is difficult to tell unless you have both drinks for comparison purposes. See below - Coke has more carbonation, so it is slightly fizzier & Pepsi has less carbonation, so it is slightly "flatter."
  • Smell its aroma - If you still aren't sure, try smelling your drink as you gently swirl it in its glass (like a wine snob). This releases a little more of the aromatic chemicals into the air so your nose can pick them up. Concentrate on the aroma — if you had to choose, does it remind you of raisins and vanilla (like the flavor of Coke) or citrus fruits (like the flavor of Pepsi)?


Pepsi vs. Coke: What's Really the Difference?

The orange juice in your refrigerator probably came from Coca Cola. The oatmeal you eat with it? That's probably a Pepsi jam. In fact, together these two companies make up an enormous proportion of the drinks and snacks you may have on a daily basis. Coca Cola (COKE) alone claims more than 500 brands worldwide.

These two companies have expanded enormously since their founding in the late 19th century. Still, all the sports drinks and sun chips in the world don't change their core mission: winning the cola wars. Ever since Coke and Pepsi (PEP) hit the shelves they have been direct competitors, a head-to-head that by now has become a part of American culture. Some people swear by the bright blue can. Others won't even use the word "soda" when they can ask for a Coke.

Here's what you (probably don't really) need to know the next time a waiter asks, "Coke or Pepsi?":
  • What to Know About Coke - Coke was invented in 1886 by a chemist named John Pemberton. While specific stories vary, most records agree that Pemberton was trying to create an anesthetic syrup. (Some records indicate that Pemberton, a Confederate veteran, was trying to replace morphine, upon which he had become dependent during the Civil War.)
  • What to Know About Pepsi - Pepsi has always been the Apple to Coke's Microsoft, the Lyft to Coke's Uber. (Although that might not be fair. If Travis Kalanick had started Coca-Cola each can would cost five times as much in the summer and the company slogan would be "Coke: It would taste better if you smiled more.")


Coke vs. Pepsi: Who Controls the Market Share?

Coca Cola and Pepsi control the global non-alcoholic beverage industry. Two powerhouses control the market share of the carbonated soft drink and beverage industry: PepsiCo. Inc. (PEP) and The Coca-Cola Corporation (KO).

Since 2004, Coca-Cola Company has been the market leader. Coca-Cola, despite a brand value decline of 13% in 2021, remained the world’s most valued soft drink brand at $33.2 billion in 2021, according to Brand Finance. PepsiCo. takes second at $18.4 billion. Dr. Pepper-Snapple was the fastest-growing soft drink brand with a 40% brand value increase, followed by Red Bull’s 15% increase.

KEY TAKEAWAYS:
  • PepsiCo. Inc. and The Coca-Cola Corporation are the two powerhouses controlling the bulk of the carbonated soft drink (CSD) and beverage industry.
  • Both companies have a large global presence, controlling several hundred brand names each.
  • Since 2004, Coca-Cola Company has been the market leader, according to industry statistics.
  • Pepsi ranks second, followed by Dr. Pepper-Snapple.
  • In Q1 2022, PepsiCo had a market cap of $229.3 billion while Coca-Cola had a market cap of $268.4 billion.


Coke vs Pepsi: Modern Day Cola Wars

Thanks to the pandemic, soda consumption is back up. So are we headed for another war between the two mainstay cola brands or is it clear that one brand rules the (modern) day?

What were the original cola wars? Back in the 1980’s, there was an epic battle of two brands: Coke and Pepsi. Both brands clambered for market share (Little 2019). Here’s what went down:
  • Pepsi won a bunch of blind taste tests.
  • They famously shared the results in the Pepsi Challenge campaign.
  • For a short time, Pepsi beat Coke in sales.
  • Coke countered with “New Coke”, but quickly back-peddled as they faced angry Americans who loved the original product.
  • If you are old enough to recall that period of time, which brand did you choose? Were you a Classic Coke fan, or a Pepsi lover? And do you think your tastes have changed?


The Difference Between Coca-Cola and Pepsi, Explained

Whether you’re a casual soda drinker or a soft drink fiend, odds are you have a strong opinion when it comes to the longstanding rivalry of Coca-Cola versus Pepsi.

The Coca-Cola Company and PepsiCo are two of the largest and most recognizable food and beverage brands in history, each with hundreds of products sold in markets worldwide. From television and print ads, to celebrity endorsements and iconic product placement in feature films, the companies’ influence knows no bounds. But despite their current international dominance, both of these megabrands had humble beginnings, originating in 19th-century pharmacies in the American South.

For all the Coca-Cola devotees and Pepsi fanatics out there, read on to learn more about the great Pepsi vs Coca-Cola debate, and how these two all-American sodas really compare:
  • Dr. John Pemberton, an Atlanta-based chemist, developed Coca-Cola’s original syrup in 1886. After Pemberton’s sweetly flavored creation was deemed “excellent” by a local pharmacy, it was mixed with carbonated water and sold for 5 cents a pop. Despite Pemberton’s role as the brainchild, the brand’s meteoric rise has been largely attributed to Frank M. Robinson, Pemberton’s bookkeeper, who is credited as the genius behind Coca-Cola’s name and iconic logo that still graces the company’s branding today.
  • Unfortunately, Pemberton would not get to experience the true worth of his invention. Following Pemberton’s death in 1888, fellow Georgian Asa G. Candler purchased the rights to the company for $2,300, and launched Coca-Cola into a full-fledged empire.
  • Two states over and nearly a decade later in 1893, Pepsi was invented by pharmacist Caleb Bradham in New Bern, N.C. Originally called “Brad’s Drink,” the unique tonic was sold at Bradham’s pharmacy where it became a popular beverage among the locals. In 1903 Bradham trademarked his product “Pepsi-Cola” and started selling it across the state. The brand’s reach continued to expand rapidly and, by 1910, there were 240 Pepsi-Cola bottling franchises in 24 states.


Why Coke is winning the cola wars
The Cola Wars has given way to a portfolio game, but cola remains a heavy hitter

It's been a long time since PepsiCo just sold Pepsi and Coca-Cola just sold Coke.
Both companies now sell juice, water, sports drinks and iced coffee. And in many of these categories, Pepsi is winning.

But when it comes to regular old cola, Coke is still king. In the last decade, Coke's market share has risen from 17.3% to 17.8%, while Pepsi's has dropped from 10.3% to 8.4%, according to Beverage Digest, a trade publication. Diet Coke and Diet Pepsi have both lost ground but Diet Coke is still far ahead.

Here's how it happened — and why it matters:
  • Thinking outside the can - It's a tough time for soda sellers.
  • Soda still matters Carbonate-  soft drinks still accounted for $81 billion in sales in North America in 2016, according to Beverage Digest — way more than growing categories like water ($23 billion) and sports drinks ($9.4 billion). And soda is cheaper to make than other beverages.
  • Chasing Millennials - In January, Coke announced new Diet Coke flavors and a sleek new can. The campaign was aimed at a younger crowd: The new flavors, like Ginger Lime and Zesty Blood Orange, call to mind different variations of trendy La Croix seltzers.


COKE VS. PEPSI: The Amazing Story Behind The Cola Wars

The rivalry between Coca-Cola and Pepsi is legendary. Although the feud really heated up with the Pepsi Challenge in 1975 —which prompted Coca-Cola's horrific New Coke debacle — the brands have been fighting each other for more than a century.

And not just about product development. Things occasionally get personal, which sometimes resonates in their marketing. Earlier this year, Pepsi went after Coke's famed mascots, the polar bears and Santa. The feud has even moved into outer space and raged over social media.  So how'd it become this way? The folks at CnnTees put together an amazing infographic entitled "The Soda Wars" that includes everything you'd ever want to know about the history of Coca-Cola and Pepsi.

Take a look:
  • The saga began in 1886, when John S. Pemberton developed the original recipe for Coke. Here's what was in it:
  • Pepsi-Cola was created in 13 years later by pharmacist Caleb Bradham.
  • Coca-Cola was already selling a million gallons per year by the time Pepsi came to be
  • Coke developed its iconic contour bottle, got big name endorsements and expanded to Europe. Meanwhile, Pepsi went bankrupt because of WWI.
  • Pepsi went bankrupt again eight years later, but this time it rebounded.
  • During WWII, Pepsi amped up its advertising and started selling its drink in cans.
  • In the 50s, Coke ads started hitting TV, while Pepsi rebranded to try to keep up.
  • Coke decided to go public in 1962, on the heels of its launch of Sprite, which would become one of its most successful brands.
  • Pepsi merged with Frito Lay in the mid-60s to create PepsiCo, setting the stage for the war today. Diet drinks popped up too, creating a whole new soda segment.


Ovaltine vs Milo: See Their Differences, Similarities, & Benefits

Milo and Ovaltine are two of the most popular chocolate breakfast drinks in the world, available at most supermarkets. With cocoa and several other ingredients that are similar to each other, these two products have many things in common. However, there are many differences between the two when comparing their ingredient lists and contents. You may wonder which one contains more vitamins and minerals and which one should be part of your regular diet.

What is milo? = The Milo beverage is a popular beverage made with chocolate-flavored malted powder and was invented in 1934 by Thomas Mayne and manufactured by Nestle. You can generally enjoy this beverage by mixing it with cold or hot water. Often advertised as a sports drink, Milo comes in a green package (refill or tin) and mainly comes in powdered form. Other Milo forms that exist include cube forms, granola protein bars, snack bars, and cereal forms. Additionally, the ingredients and formulas used in making Milo differ according to the regions making them. While some add sugar and milk to their formula, others don’t. The use of nuts to add flavor to the beverage also exists in some regions.

What is Ovaltine? - Ovomaltine or Ovaltine as it is popularly called is another brand of beverage made using chocolate milk-flavored powder. Major ingredients used in making it include malt extract, sugar, and other flavors. However, these ingredients may vary based on the country or region of production. For example, the formula used in making Switzerland’s Ovaltine does not include sugar and replaces it with honey. However, those made in the United States, use sugar as the primary sweetener.