The rivalry between Coke and Pepsi is legendary.
At one point, Coke and Pepsi were so embattled that they refused to join forces to make an "American Cola" during WWII, given a rationing of sugar. (Coke successfully lobbied to become an approved staple of troop support, while Pepsi bought a Cuban sugar plantation and produced its syrup in Mexico.*)
But now? Facing declining soda sales, the companies have teamed up in an act of self-preservation.
Check this ad I saw the other week:
(There are other noteworthy things about this commercial, but the fact that it exists at all is massive. Here’s the campaign website.)
Society is slowly but surely moving towards healthier consumption habits, and cutting out sugary drinks was an obvious early step when the obesity epidemic was realized. Tough luck for companies whose empires are built on selling carbonated syrup.
It's a bit shocking to see these companies on the defensive. Coke and Pepsi have been mainstays in American culture for generations –Pepsi literally had multiple marketing campaigns called "The Pepsi Generation"– but the pace of change has left them just trying to tread (carbonated) water. Of course, the companies have diversified their product offerings over the years (first within soda, then to other beverages like bottled water), but the DNA of these companies is very much rooted in the 20th century.
Honestly, I'm almost a bit nostalgic (if one can be for a time they weren't alive). Technology has created and disrupted so many industries in the past few decades, upping the pace and complexity of business strategies. Coke and Pepsi just sold (essentially identical) soda, and while they competed for market share, their battle kept actually kept their products relevant. They were frenemies in a very different era than the one Google, Amazon, Facebook, and Apple are in today.
Parting Question
Who are the Cokes and Pepsis of this generation?
What current industries will be blindsided by the future?
You may have seen this animation make the rounds recently:
(There are valid critiques of this video, but it's at least directionally accurate.)
Who's next to rise? To fall?
Friday Bonus Question
There used to be a party game called "Coke and Pepsi" where kids split into two aptly named groups on opposite sides of the room. What would the game be called today?
*Source: Business Wars podcast, Coke vs. Pepsi series