The rivalry between Coca-Cola and Pepsi dates back over a century as they have battled for soft drink market share globally. While Coca-Cola remained primarily focused on beverages, Pepsi diversified into snacks and foods. Financially, Pepsi had a stronger average return on equity and healthier current ratio, though Coca-Cola's return on assets was slightly higher. Moving forward, recommendations include Coca-Cola expanding their international markets and brand loyalty, while Pepsi focuses on market penetration, pricing strategy, and cost reductions through diversification.

2. Thecolawarand brief introduction
•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.
•Coca-Cola was created in 1886 in Georgia, while Pepsi was created in 1893 in North Carolina.
• According to Bloomberg BusinessWeek, Coca-Cola remains the best globally recognized brand across all industries for years, while PepsiCo’s brand ranked
number 26 in year 2008.
•Apart from Pepsi cola co. and Pepsi cola International, it had six otherdivisions which had given it a commanding presence in Food Business.
•Pepsi entered into the Indian beverage market in July 1986 as a joint venture with two local partners, Voltas and Punjab Agro, forming “Pepsi Foods Ltd.”
•Coca-Cola followed suit in 1990 with a joint venture with Britannia Industries India before creating a 100% owned company in 1993 and then ultimately aligning
with Parle.
•Coca-Cola: Parle offered its bottling plants in 4 major cities. Made its return to India with Britannia Industries India Ltd. Disadvantages Rigid Rules and
Regulations. Buying of bottling plants leads to 49% disinvestment. Local demand of carbonated drinks is as very low. Harder to establish themselves
•Pepsi’s : Own set up green filled bottling plants. Advantage of coming before Coca Cola. Government policies favored the company. Joint venture with Volta's
and Punjab Agro. Gained 26% share by 1993. Disadvantages Pepsi approached Parle but it was rejected. Launched 7up and there is stiff competition in the market
for lemon drinks.

3. COCA-COLA
 NET REVENUE-9.05
 GROSS PROFIT-9.54
 OPERATING INCOME-10.20
 INCOME BEFORE INCOME TAX-
6.65
 NET INCOME-6.22
 COST OF GOODS SOLD-8.37
 SELLING,GENERAL
&ADMINISTRATIVE EXPENSE-
10.12
 OTHER OPERATING EXPENSES-
18.84
 INCOME TAX-9.39
 NET REVENUE-9.92
 OPERATING PROFIT-7.89
 INCOME FROMCONTINUING
OPERATION BEFORE INCOME TAX-7.37
 INCOME FROMCONTINUING
OPERATION -8.84
 TAX BENEFIT FROM DISCONTINUING
OPERATION-(20)
 COST OF SALES-11.74
 SELLING,GENERAL &ADMINISTRATIVE
EXPENSE-9.44
 OTHER EXPENSES-46.02
 PROVISION INCOME TAX-12.89
PEPSI

4. COCACOLA
 CURRENT ASSET-11.22
 INVESTMENTS-2.11
 OTHER ASSETS-(11.12)
 PROPERTY,PLANT&EQUIPMENT-
7.02
 TRADE MARK –34.62
 GOODWILL-46.81
 OTHER INTANGIBLE ASSET-29.17
 CURRENT LIABILITIES-13.38
 LONG TERM DEBT-18.77
 OTHER LIABILITIES-10.29
 DEFERRED INCOME TAX-47.37
 SHARHOLDERS EQUITY-8.37
 CURRENT ASSET-10.13
 INVESTMENTS-6.33
 OTHER ASSETS-21.04
 PROPERTY,PLANT&EQUIPMENT-
8.40
 TRADE MARK –5.74
 GOODWILL-6.32
 OTHER INTANGIBLE ASSET-1.8
 CURRENT LIABILITIES-8.77
 LONG TERM DEBT-39.87
 OTHER LIABILITIES-12.62
 DEFERRED INCOME TAX-18.3
 SHARHOLDERS EQUITY-7.57
PEPSI

5.  PepsiCo, in an effort to battle its rival Coca-Cola, diversified its businesses into other products such
as snacks, chips and breakfast food with core business focusing on soft drinks. But Coco-Cola has
been staying primarily in soft drink/beverage industry.
 PepsiCo’s current assets averaged 30.73% of its total assets, and short-term liabilities averaged
24.70% of its total liabilities and shareholders’ equity. Thus, it had a healthy average current ratio of
1.25. Coca-Cola’s current assets average of 31.99% and short-term liabilities average of 32.22%
presented an average current ratio of 0.99.
 PepsiCo had a better average return on common equity of 33.92% than Coca-Cola’s
 30.29%, whereas both companies had similar return on assets with Coca-Cola’s 16.54% average only
being slightly better.
 Coke should focus on its developing international market and expand their offering.
 A second recommendation would be to sustain or increase the global market share. Coca-Cola is
very well-established globally, and is the global soft-drinks leader.
 A final recommendation for Coca-Cola is to maintain and try to increase their brand loyalty. Diet
Coke has the second highest brand loyalty of all the soft-drink competitors’ brands, and solid
advertising campaigns will help maintain the brand loyalty.
 Pepsi should work on market and product development, market penetration.
 Pepsi should revise their price strategy
 Lowering down the operational cost and diversifying in to other foods and beverages are another
strategy