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article imageCoca-Cola Tallies Another Win in Ongoing Cola War With Pepsi

By Michael Krebs     Feb 28, 2009 in Business
The cola war between Coca-Cola and Pepsi continues - with McDonalds choosing Coke nationally over Pepsi and remaining with its long-time beverage of choice.
After a national taste test, McDonalds, the world's biggest fast food company, has chosen Coca-Cola over Pepsi and has set in motion another corridor in the worldwide war between the two cola giants. The McDonalds decision bolsters Coca-Cola's U.S. strategy, as the outcome reflects the national beverage standard at the fast food eatery.
"After a test of Pepsi products in several U.S. markets, we have decided that they will not be included in our national beverage strategy," said Dayna Proud, spokeswoman for McDonalds.
Pepsi's U.S. strategy since 1984 has been to position themselves as the choice of the young generation. The company has most recently tethered their advertising to the Obama administration, clearly seeking to benefit from the new president's appeal among younger voters. It is a strategy that has been paying good dividends.
In December, 2008, Pepsi surpassed Coke in market capitalization for the first time in their 108-year rivalry. It is this kind of momentum that may cause Pepsi to shrug off the McDonalds decision, where Coca-Cola has long been the beverage of choice.
But Coca-Cola has not been sleeping through Pepsi's push. Coke's corporate advertising theme of "Open Happiness" has been a major overlay for the company's communications efforts, and the recent super bowl commercial for Coke Zero playfully underscored their long heritage in American culture.
"We will continue to work with other national and regional beverage companies - including Coca-Cola - to identify a variety of fountain and bottled beverage options that will meet our customers' preferences for taste, value and convenience," said Proud.
More about Coca-cola, Mcdonalds, Pepsi, Fast food, Beverages
 
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