It is obvious that rivalry speaking, Coke and Pepsi are the main French competitors on the Cola market but, because their portfolio is not only composed by Colas, we can tell Sodas companies are competitors as well. Then, the main French competitor is Orangina Schweppes, which is a member of the huge Japanese company since 2009: Suntory.
Regarding figures, the non-alcohol beverages market in France represents around 3 billion euros and is mainly detained by Coke, followed by Orangina and PepsiCo is well behind.
Bargaining power of suppliers/distributors:
In this part, we have to mix suppliers with distributors because the two companies are producing their own products and using just a few suppliers regarding raw materials.
Then, as far as I know, PepsiCo and Coke are working on 3 distributions channels: “Alimentaire – Hors-Foyer and Clients chainés”. It means they are differentiating Hyper/Supermarket, nomad consumption and companies selling their products such as fast food and cinemas. Speaking about their bargaining power, all those distributors don’t really have the choice. Indeed, regarding the added value those products represent, all these distributors need to possess at least one reference but most of the time they can propose both of them.
So, we can tell their bargaining power is quite low regarding the huge demand they have to face.
Bargaining power of Consumers:
What power does have the final consumer regarding Colas’ companies? Well: NO POWER. Indeed, the consumer just has the choice consuming or not consuming this kind of product. What can say that the average customer can boycott Colas and there is an anecdotal experience we can use regarding boycott and the Coca-Cola Company. In January 2013, a France Television Journalist did a TV show about the Coca-Cola Company and explained how dangerous it is to drink this kind of beverage. Then, this TV show became viral on Internet and we can imagine the Soda’s volume consumption could have suffered for a while.
Threat of substitutes:
The Soda market is really threatened by a lot of other products. Indeed, in term of beverages, we can all imagine how many different products consumers can drink: water, sparkling water, fruit juices, alcohol, energy drinks, milk, coffees, teas and so on…
This non-exhaustive list still remains the main threat for Soda’s companies.
Threats of new entrants:
Speaking about new entrants, we can observe in France a strong trend: identity colas. The first one that I really do like because we are coming from the same region: Brittany, is Breizh Cola. This Cola is now representing 15% of market share in its own region and Pepsi is today well behind. Then, the French market has seen a lot of new identity colas appeared for the past few years: Chti Colas (North of France), Elsass Cola (Alsace), Fada Cola (Marseille), Vendée Cola (Vendée), Bougnat Cola and Auvergnat Cola (Auvergne), Meuh Cola (Normandie) and last but not least: Corsica Cola (Corse).
We can observe this new identity trend is really well spread in France and maybe this is due to a kind of anti-Americanism or a willingness to show that people are fed up about monopolies.
A last force, which is not represented on the scheme above, is the political one. As a matter of fact, in January 2012, the government, represented by Mr. Fillon, has settle down a new law about sweeties products: the sugar tax. The main objective of this regulation was to promote less sugar products compare to sugar-based ones in order to reduce the obesity issue that is increasing in the country.