Nix And Uruguay’s Soft Drink Industry Case Study Help Analysis With Solution Online
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The case describes Uruguay’s soft drink industry, starting with the arrival of Coca-Cola in 1945 and reviewing the industry’s track record until 2000. The industry is characterized by having two different periods: one spanning until the mid-1990s, with two highly profitable players -Coca-Cola and Pepsi- and a second one unfolding in the second half of the 1990s, when three new players emerged: Caribeño S.A., with its Nix product, a group of b-brands, and smuggled sodas. At the time of the case, the two large international players have started losing increasing amounts of money, while the new players seem profitable. The case also explores several developments that heavily influenced the industry, such as the introduction of PET disposable bottles, the tax scheme applied to soft drinks by the Uruguayan government, and the lax enforcement of regulations and legal control of industry players. The case ends with Caribeño’s CEO, Dr. Marcelo Viera, wondering what to do once he learns that his company is about to replace Pepsi as the second leading soft drink brand in Uruguay.
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CASE ID : HB CASE 584
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