The soft drink industry has been engulfed by an ongoing cola war stemming from a long-time battle between Coca-Cola and Pepsi Co. Recently both companies have introduced their products to the foreign market, but in order for either company to turn a profit, there is a large amount of red tape they must cut before production can begin. This paper will examine the new markets and the roadblocks that have stopped these companies for so long. Established in 1886 and 1889, Coca-Cola and Pepsi Co., respectively, were among the first soft drinks invented and their popularity grew rapidly. By the 1930s, Coca-Cola appeared on over 20,000 walls, 160,000 billboards, 5 million soda fountain glasses, and 400 million newspaper and magazine advertisements (Secret Formula p. 206). When the war (Second World) ended, the Coca-Cola Company had sixty-three overseas bottling plants in operation in venues as far-flung as Egypt, Iceland, Iran, West Africa, and New Guinea (Secret Formula, p.265). Since then, international marketing has become more complex and the following will study the new territories and the advancements that the companies have made.
             In 1972, Pepsi signed an agreement with the Soviet Union which made it the first Western product to be sold to consumers in Russia. This was a landmark agreement and gave Pepsi the first-mover advantage. Presently, Pepsi has 23 plants in the former Soviet Union and is the leader in the soft-drink industry in Russia. Pepsi outsells Coca-Cola by 6 to 1 and is seen as a local brand. However, Pepsi has had some problems: there has not been an increase in brand loyalty for Pepsi since its advertising blitz in Russia, even though it has produced commercials tailored to the Russian market and has sponsored television concerts. On the positive side, Pepsi may be leading Coca-Cola due to the big difference in price between the two colas: Pepsi sells 2 liters for Rb1,300 ($1.30 US), but Coca-Cola sells 1.5 liters f...