Publications
Publications
- October 2023
- HBS Case Collection
To Fizzle Out or Heat Up? PepsiCo and Coca-Cola’s SodaStream and Costa Coffee Acquisitions
By: David Collis and Haisley Wert
Abstract
U.S. beverage giants PepsiCo and Coca-Cola shared many similarities by August 2018—both were founded by pharmacists in the 1890s, grew to offer hundreds of drink brands, and championed rival flagship products that drove loyalists into taste-testing wars. That month, each company announced its largest acquisition in history, of SodaStream and Costa Coffee respectively. But why would such similar firms pursue such different diversifications? Which was the better direction of scope expansion?
Keywords
Corporate Strategy; Acquisition; Diversification; Expansion; Brands and Branding; Food and Beverage Industry
Citation
Collis, David, and Haisley Wert. "To Fizzle Out or Heat Up? PepsiCo and Coca-Cola’s SodaStream and Costa Coffee Acquisitions." Harvard Business School Case 724-394, October 2023.