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Economies of Scale:

Bottling operations Have a
fairly high minimum efficient
scale and require a fixes assets
which are specific not only to
the process of bottling but also
to a specific type of packaging

Differentiation: Millions of dollars each
year on advertising in order to highlight
the unique features of their brands.

The access to the distribution channels
is not easy: acquisitions of independent
franchised bottlers, which has made
smaller concentrate producers increasingly
dependent on those bottling networks for
distribution of their products.

The expected retaliation from existing
competitors is very high.

Government policies such as soda tax
on sugary drinks, may let new entrants
consider before enter to the industry.
There are a large number of Consumers
and Retailers.

Although there is no switching cost
because the preferences are associated
with the taste, consumers have
historically been brand-loyal and

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