Industry Analysis & Industry Trends
Sweet and sour
Syrup and flavoring manufacturers are facing declining demand from the nation's soft drink producers. Health concerns over soda's sugar content and artificial sweeteners are causing consumers to move away from carbonated beverages, hurting demand for the syrups and flavorings used in their production. On the other hand, the influx of new drink products in response to changing consumer preferences will present an opportunity for growth to this industry, as will the rise of regional and niche drink markets... purchase to read more
Industry Report - Starting a New Business Chapter
While barriers to entry into this industry are moderate, there is a limit to the extent that new producers can compete due to the strong competitive position of the incumbent firms. These companies have well established, well recognized brands and established relationships with bottlers. In many cases, beverage base manufacturers are significant shareholders in bottlers. While the brand owners' share in a bottler is usually non-controlling, they often have significant-enough holdings to affect the management of bottlers.
Major players often write exclusive contracts with bottlers, reducing the ability of other syrup manufacturers from establishing agreements with these bottlers. This factor acts as a significant barrier to entry... purchase to read more