As an individual investor, sometimes it is difficult to get market share data or industry statistics, particularly when management doesn't make it a habit to frequently disclose such figures. As many readers will know from experience, it is difficult to effectively analyze industry competitiveness and barriers to entry with simple rankings of first, second, third, etc.
Thankfully, Beverage Digest uploads annual data on the U.S. carbonated soft drink (CSD) market, which is useful for investors in analyzing year-over-year share gains/losses. This year, Beverage Digest has updated their data to reflect a shifting industry; as opposed to just listing CSD market share, the company lists liquid refreshment beverage (LRB) share as well to account for the increasing important of non-carbs such as bottled waters, sport drinks, ready to drink (RTD) teas and coffees, and juice drinks.
Within the CSD category, Coca-Cola saw their share of the market decline by 0.1% to 41.9%, while PepsiCo's share fell 0.8% to 28.5%. Of the big three, Dr. Pepper Snapple performed the best in relation to last year, holding share steady at 16.7%. By brand, Coke and Diet Coke maintained their top positions, with Pepsi, Mountain Dew, and Dr. Pepper rounding out the top five slots.
In overall LRB's, Coca-Cola's share declined 0.2% to 34%, but was still good enough for a decent lead over PepsiCo, which holds 26.9% of the category after a 0.6% loss of share in 2011. By brand, Coke maintained a demanding lead at 18.8% of the category, compared to just 10% for #2 PepsiCo. The first non-CSD in the rankings is Gatorade, at #5 with 4.2% of the LRB category.
For interested investors, the full results can be found here.
About the author:
I think Charlie Munger has the right idea: "Patience followed by pretty aggressive conduct."
I run a fairly concentrated portfolio, with a handful of positions accounting for the majority of the total. From the perspective of a businessman, I believe this is sufficient diversification.