Tuesday, March 22, 2011

How Diet Coke Ousted Pepsi From The #2 Spot: By Sucking Less

diet coke

Coca-Cola now holds the #1 and 2 positions in the U.S. soda market, booting Pepsi down to #3. 

What's Coke's secret? Sucking less in a down market, says Forbes.

According to Beverage-Digest, U.S. carbonated drink sales have been sinking since 2004; they're the lowest they've been since 1996. 

This past year, Pepsi declined 4.8% versus Diet Coke's 1%. "Because the sector has been shrinking in the U.S., Coke and Diet Coke's market share remained flat even though both lost a small percentage of volume," writes Forbes' Beth Kowitt.

The biggest culprit for the overall decline is America's newfound calorie-consciousness. Soda sales are taking a hit while bottled water and still beverage sales are on the rise.

For more on the soda wars, head over to Fortune >>

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