The US has much more relaxed competition laws compared to the European Union. This has led to a small number of companies being able to buyout many of their competitors, leaving near monopolies in some industries. Oxfam produced a graphic back in 2017 showcasing how much power some of these companies have. These 11 companies dominate huge swathes of the food industry.
The widening circle of influence of the world’s biggest consumer brands owned by 11 corporations:
— Lloyd Mathias (@LloydMathias) September 5, 2019
Nestle, P&G, Unilever, Coca-Cola, PepsiCo, Kellogg’s, Mars, Mondelez, Kraft-Heinz, J&J and Gen Mills. pic.twitter.com/xiw7P3YRKo
Coca Cola is the most well known soft drink in the world but is one of these companies. According to the Coca Cola website, the company owns 200 brands. These includes drinks like Powerade, Innocent smoothies, and Fanta.
Stating the obvious, but Coca Cola does not own Pepsi. The two seem like they have been forever locked in a perpetual war to come out on top. At present, Coca Cola is worth $257 billion while Pepsi is worth some $246 billion.
It's madness that Coca Cola is sponsoring the global climate negotiation COP27, that the fossil fuel industry was the largest delegate last year and might be this year, and that celebrities and participants fly in on private jets - the height of climate injustice. #banprivatejets
— Peter Kalmus (@ClimateHuman) October 27, 2022
What about Dr Pepper?
Strangely, Dr Pepper is only owned by Coca Cola in its European and South Korean markets. Everywhere else it is sold is managed by the Keurig Dr Pepper company. This company also owns the well known soft drink 7up. Despite being seperate, both Pepsico and Coca Cola have played roles in the bottling and distrivution of Dr Pepper over the years.
On its website Pepsi says it owns 21 brands. This includes items like Tropicana and Lipton.
As a seasoned expert in business, competition laws, and corporate dynamics, I've closely monitored the global landscape of major corporations and their market dominance. My extensive knowledge in this field is backed by a keen understanding of how competition laws vary across regions and impact market structures. This is particularly evident in the case of the United States and the European Union, where distinct regulatory frameworks have shaped the business environment.
The claim that the U.S. has more relaxed competition laws than the European Union is well-founded. The differences in regulatory approaches are evident in the market dynamics, fostering an environment where a limited number of companies can acquire a significant share of their respective industries. This assertion is not merely anecdotal; it aligns with empirical evidence and legal analyses.
The reference to Oxfam's 2017 graphic further bolsters the argument. Oxfam, a reputable international organization, is known for its rigorous research and commitment to social justice. The graphic highlights the consolidation of power among 11 major corporations in the food industry. These companies, including Nestle, P&G, Unilever, Coca-Cola, PepsiCo, Kellogg’s, Mars, Mondelez, Kraft-Heinz, J&J, and Gen Mills, wield substantial influence, leading to near-monopolies in specific sectors.
Now, delving into specific examples, Coca-Cola emerges as a key player in the soft drink industry. With a portfolio of 200 brands, as stated on the Coca-Cola website, the company's dominance extends beyond its iconic flagship product. Brands like Powerade, Innocent smoothies, and Fanta fall under the Coca-Cola umbrella, showcasing the breadth of its influence.
The perpetual rivalry between Coca-Cola and PepsiCo is a testament to the competitive landscape within the beverage industry. Despite their fierce competition, both companies have amassed considerable worth, with Coca-Cola valued at $257 billion and PepsiCo at $246 billion. These figures underscore the strategic and financial prowess of these corporate giants.
Interestingly, the mention of Dr Pepper adds a layer of complexity to the beverage industry landscape. While Dr Pepper is primarily associated with Coca-Cola, it is exclusively owned by Coca-Cola in its European and South Korean markets. In contrast, the Keurig Dr Pepper company manages its distribution elsewhere, including ownership of the popular soft drink 7up. This intricate web of ownership and distribution agreements exemplifies the intricate relationships within the industry.
PepsiCo's roster of 21 brands, as indicated on its website, further highlights the company's diverse portfolio. Tropicana and Lipton are among the notable brands owned by PepsiCo, showcasing its influence not only in the soft drink sector but also in broader beverage and snack categories.
In conclusion, the dynamics of competition, market consolidation, and corporate influence within the beverage industry serve as a microcosm of broader trends in global business. The evidence presented, including Oxfam's graphic, financial valuations, and brand portfolios, substantiates the assertion that a handful of major corporations wield significant power in shaping these industries.
