The non-alcoholic beverages falls in the category under the FDA and the government plays a role within the operation of manufacturing these products. In terms of regulations, the government has the power to set potential fines for the companies that did not meet their standard law requirement. The company has monitored the regulations and politics in each country to maintain and protect their brand image by assigning the risks. Such regulations are made by governments such as the debates in India in 1990’s focused on banning and selling Coca Cola and Pepsi at government schools, universities and college and hospitals. The changes in laws and regulations, such as accounting standards, taxation requirements and environmental laws and foreign jurisdictions might affect the book of the company as well as their entry in foreign country.
The Coca Cola Company (2006-2011) stated that they are the largest beverages company, serving 1.6 billion people globally in 200 countries. The company has large scale of distribution channels and operation centres in all over the world. Industry analysis of S&P stated that economic improvement in international markets helps to enhance the stability of the multinational companies. The non-alcoholic beverage industry has high sales in countries outside the U.S. According to the Standard and Poor's Industry surveys, "For major soft drink companies, there has been economic improvement in many major international markets, such as Japan, Brazil, and Germany." These markets will continue to play a major role in the success and stable growth for a majority of the non-alcoholic beverage industry. There is a low growth in the market for carbonated drinks, especially in Coca Cola’s main market, North America. The market growth recorded at only 1% in 2004 for North America.
Consumers from the ages of 37 to 55 are also increasingly concerned with nutrition. Since many are...