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Concentrate Essay Topics & Paper Examples

Cola Wars Bottling vs Concentrate

Compare the economics of the concentrate business to that of the bottling business: Why is the profitability so different? The returns received by concentrate producers differ from those received by bottlers for several reasons … Concentrate producers: Capital investment. Concentrate production business is less capital intensive than bottling. It requires less funds to be invested in machinery, labor and modernization. “A typical concentrate manufacturing plant cost about $25 million to $50 million to build, and one plant could serve the entire United States” (Yoffie, 2007). The number of significant costs is small. The major ones are: advertising, Market Research and product development. However, concentrate producers tended to employ large number of people to work with bottlers and their suppliers to…