Case Overview At December 4th 2000, PepsiCo, Inc. announced the merger with the Quaker Oats company. With this merger, PepsiCo, Inc. have the access to Gatorade and control the sport drink market by 83,6%. Analysts estimated that PepsiCo would control 33 % of the U.S noncarbonated beverage market after the Gatorade acquisition, While Coca Cola only control 21 % of the market. Key Issues Coke and Pepsi had created one of the strongest rivalries in beverages business, Carolyn Keene (consumer …showed first 75 words of 2766 total…

…showed last 75 words of 2766 total…is stronger than that of Pepsi. Coca-Cola's EVA, ROIC - WACC spread and other performance ratios are better than those of Pepsi. Until 2000, US drinks market is still dominated by carbonated soft drinks (71% at 2001) and Coca-cola is still the dominant player, with 40% market share, and Pepsi is trailing with 31% market share. Looking at the future, Pepsi is a better choice because it is dominating US noncarbonated soft drinks and has been showing EVA growth since 1994.