The beverage industry was significantly changed during the mid 2000's from being dominated by carbonated soft

drinks to alternative beverages such as energy drinks, sports drinks, and vitamin-enhanced beverages. The carbonated soft drink sector faced ash criticism from health official about the health risk their products creates for customers. With the health official lashing out on carbonated soft drinks and consumer consumption decreasing, global beverage companies had to shift up its production, and started to focus more on alternative beverages. The introduction of alternative beverages saw blistering growth during its first quarter, and the global beverage industry was projected to gain a $20 billion increase by 2014. Sales of alternative beverages rocketed in the global industry, and if it wasn't for America's economic meltdown the numbers would be relatively higher. In the United States companies was suffering during the recession; the sports drinks sector recorded the second biggest lost with a sales decrease of 12.3 percent between 2008 and 2009. Flavored water suffered the most with its lost on sales coming in at 12.5 percent. The United States is very important to the beverage industry because its responsible for 42.3 percent of sales from the $40.2 billion the global beverage industry accumulated in 2009; before the recession the alternative industry saw a increase of sales by 13 percent from 2005 - 2007. The market for alternative beverages is constantly improving with competitors pushing each other to the gain the trust of consumers. This is not just good in terms of sales and market growth but also health wise. Alternative beverages didn't just had an effect on market shares and sales but also health risk. Companies are well aware of the fact that consumers are starting to pay close attention to label on their products, which in return forces beverage companies to make a more "healthier decision" when creating their products. The energy drinks and other products with a high level of caffeine provides health risk and could lead to negligent demeanor by consumers. This then caused manufactures to introduce warning on the their product labels such as "do not consume more than 3 bottles of energy drink within a 3 hour span", another warns about the great health risk consumer would be taking if they were to mix the product with alcohol. As consumer preference changes beverage companies must change also to meet the expectation of the consumers. The biggest successor of the alternative beverages is PepsiCo with a global market share of 26.5 percent and a 47.8 share percentage in the geographic leader for consumption (U.S.A) market share in 2009. PepsiCo's number 1 competitor Coca-Cola was behind by 15.5 percent in the global beverage industry. It seems as if PepsiCo forced Coca-Cola to a grounding second place in almost all categories; With both companies selling their brands in over 20 countries, PepsiCo has been the better of the two. PepsiCo and Coca-Cola expanded their line of products, but PepsiCo holds the number 1 spot for sales in all categories except carbonated soft drinks. The sports drink sector was clearly dominated by the PepsiCo brand Gatorade, has too was Tropicana, frappuccino and aquafina as product leaders in their respective categories. PepsiCo holds a

2-1 ratio in the worldwide market share. PepsiCo saw their Net revenue increase by $6 million in 2009 from the 2007 $39 million. PepsiCo and Coca-Cola has a great advantage when it comes to product distribution, with an already established distribution channel from their Pepsi and Coke soft drinks. Its relatively easy for them to get alternative beverages to supermarkets and other stores where ever Pepsi or Coke can be purchase.