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Compare the economics of the concentrate business to the bottling business: why is the profitability so different? Justify your answer.
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Compare the economics of the concentrate business to the bottling business: why is the profitability so different? Justify your answer. The soft drinks industry tends to be highly concentrated, with the large number of global and multinational brands. The leading carbonates companies lead the overall market. High levels of innovation and product activity in recent years show the large size and competitive nature of the sector. Within the carbonated soft drinks (CSD), colas continue to dominate, but there have been rising levels of interest in other flavours. The term "soft" covers a broad range of non-alcoholic drinks, other than hot-beverages and milk-based drinks. There are four major participants involved in production and distribution of CSDs: concentrate producers, bottlers, retail channels and suppliers. We will closely look at the economies of two participants: bottlers and concentrate producers, and try to understand the reason for the difference in their profitability. Concentrate producers (CP): ...
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