Some of the largest and most popular beverage companies in the world have been making some changes in the hope that they will help bring sales up.
PepsiCo announced its plans to invest $1 billion more in Russia over the next three years. This decision is supposed to increase Pepsi's influence in the food and beverage market in Russia and is also part of a plan to expand in emerging markets. Furthermore, the investment in Russia is funding various programs to expand manufacturing and distribution capacity such as opening new beverage facilities and snacks manufacturing plants.
At the same time Japan’s top two beverage makers, Kirin and Suntory are considering merging. If the said merger goes through, the company will become one of the largest food and beverage companies by sales. It will be beneficial for both companies as the merger will help them compete more strongly with other large international brands.
Starbucks Corp. has also been looking into making some changes. For example, it is changing the name of a Seattle Starbucks store and adding alcohol to the menu. Furthermore, the company is considering changing the name of a few other coffee shops as an effort to attract more customers. As many people see Starbucks coffee as a luxury, they are choosing cheaper brands in order to save money. Thus the company is forced to make some changes in order to keep its customers.
The global recession makes it necessary for companies to rethink their marketing and sale strategies. This is beneficial because only the best products will be left on the market as companies perform their best. This is exemplified in the decisions some beverage companies are making.