15 Countries where Pepsi or Coca-Cola is Not Sold

Ashar Jawad

Mon, Sep 18, 2023, 7:14 AM11 min read

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In this article, we look at 15 countries where Pepsi or Coca-Cola is not sold. You can skip our detailed analysis on countries where these two companies have the least penetration or are not sold at all by heading over to 5 Countries where Pepsi or Coca-Cola is Not Sold.

The global soft drinks market had an estimated value of $413 billion in 2021, according to Straits Research, and is projected to cross $620 billion by 2030 at a CAGR of 5.23%. Coca-Cola and Pepsi are the two major powerhouses in the industry. So much so that ‘coke’ and ‘pepsi’ are often used interchangeably when referring to sodas or soft drinks. These drinks are sold across the world and can be found in the drinks menu of almost any restaurant you go to.

The Coca-Cola Company (NYSE:KO) sells its products in more than 200 countries and territories. The company, which ranks 93 in the Fortune 500 list, has an impressive record of innovation, which has propelled Coca-Cola to become one of the most successful brands in corporate history. According to the company’s website, Coca-Cola is the world’s second most understood word after ‘okay’.

Founded in 1892, the company’s first international export was to Cuba in 1899. However, it was not until World War II that Coca-Cola’s global expansion started to take off with the company wanting to ensure that every US soldier, stationed in any base from Europe to the Pacific, could find coke and feel the comfort of home. The secret of The Coca-Cola Company (NYSE:KO)’s global dominance can also be attributed to its franchise distribution system, through which the company produces syrup concentrate and sells it to bottlers around the world. Under this distribution system, more than two billion servings of Coca-Cola are produced every day across 900 bottling plants globally.

The Coca-Cola Company (NYSE:KO) holds a 43.7% share of the carbonated soft drinks market in the United States, and had a global market value of over $250 billion by September this year. Sales continue to rise each year. Revenues have grown 6% in the second quarter this year compared to the same time in the previous year, to a total of $12 billion. James Quincy, the Chairman and CEO of Coca-Cola made the following remarks in the company’s Q2 2023 Earnings Call:

"We’ve successfully navigated the first half of the year, which supports our decision to raise guidance for the full year. And instead of trying to predict the many directions things could take, we remain focused on delivering our key objectives that we outlined in February. In other words, number one, pursuing excellence globally and winning locally through relentless consumer centricity to drive top-line momentum. Two, investing for the long-term health of our business and raising the bar across all elements of our strategic flywheel. And three, generating US dollar EPS growth. Our system has never been stronger and our global network model is allowing us to quickly adapt to changing environments. We believe we are well positioned to deliver our updated guidance and objectives, thanks to our incredible system employees around the world."

On the other hand, PepsiCo, Inc. (NASDAQ:PEP) is the second most valued soft drink brand after Coca-Cola, with the brand valued at $18.4 billion as of 2021 according to Brand Finance. Like Coke, Pepsi is also sold in more than 200 countries and territories across the world. While Coca-Cola largely outsells PepsiCo, Inc. (NASDAQ:PEP) at the global level, there are some countries where Pepsi outsells Coke and holds a larger share in those markets. These include India, Pakistan, Guatemala, Oman, and several provinces of Canada.

One of the key reasons why PepsiCo, Inc. (NASDAQ:PEP) has been able to penetrate the global markets and catch up with The Coca-Cola Company (NYSE:KO) is its competitive pricing strategy, through which it ensures that its products are priced in line with or below those of its competitors. The company’s CEO, Ramon Laguarta, shed light on this in PepsiCo, Inc. (NASDAQ:PEP) Q2 2023 Earnings Call.

"We’re seeing in the majority of the markets where we operate, we’re seeing better elasticities and that has continued to be during the first half of the year, even though we’re seeing lower income consumers strategizing around obviously optimizing their budgets, but we’re seeing the majority of consumers staying within our categories, staying within our brands. And it’s remarkable what our marketing teams are, commercial teams have been doing to minimize elasticities. In some respect, it is what we have been investing for the last few years. Our brands are stronger. The perceived value of our products is better than it was. And obviously, we’ve been able to raise prices and consumers stay within our brands. Now we’re seeing consumers making some adjustments, right?
We’re seeing consumers shopping in more stores than before. They’re looking for better deals. They’re starting to look for optimization. They’re going to channels that have better perceived value. They’re buying more in Dollar stores or they buy more in mass or in clubs. So every segment of the consumer is making adjustments. Overall, we’re seeing very positive."

The global market penetration of The Coca-Cola Company (NYSE:KO) and PepsiCo, Inc. (NASDAQ:PEP) remains huge. However, there are countries where these soft drinks have been perceived to be advancing American values and ideals, and have faced local resistance. There are also nations where people prefer their own local sodas or soft drinks compared to Coke or Pepsi. Lastly, there are countries where these drinks are not sold due to economic sanctions or political instability and conflict.

Let's check out countries where Coca Cola and Pepsi are either banned, sell comparitively less or are outsold by local brands.

Methodology

We have ranked the 15 countries where Pepsi or Coca-Cola is not sold by identifying countries where these drinks are not sold at all, have limited availability, whether they are outsold or have conceded a sizable chunk of the market share to another brand. Various news stories and publications from media groups have been used to prepare this list.

First, we look at countries where Coca-Cola and Pepsi are facing competition from local brands or are outsold by another drink. Then we identify countries where Pepsi or Coca-Cola have limited availability; these countries are listed in the order of the adverse impact faced by these brands in their host countries, since no data is available on their market penetration levels due to ongoing conflicts and political instability. Lastly, countries where Pepsi or Coca-Cola is not sold are ranked going by the number of years since these brands ceased operations in these countries.

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Let's now head over to the list of countries where Pepsi or Coca-Cola is not sold as much as it is elsewhere in the world in terms of market penetration.

15 Countries where Pepsi or Coca-Cola is Not Sold

15. Iran

Status: Facing Local Competition

Rival Beverage: Zamzam Cola

Rival Beverage's Market Share: 16%

Zamzam Cola is a soft drink brand manufactured in Iran by Zamzam Group. It is among the first carbonated soft drinks produced in the country and is popular across Western Asia. The drink is named after the Well of Zamzam in Saudi Arabia, which is one of the stops during the Hajj Pilgrimage for muslims. The soft drink had an estimated share of 50% in the Iranian soft drink industry in 2007. That has now dropped to 16%. Coca Cola holds a 28% share, while Pepsi has penetration levels of only 20%.

14. Peru

Status: Outsold by a Local Brand

Rival Beverage: Inca Cola

Rival Beverage's Market Share: 26%

Peru is one of the few countries where a local soft drink outsells both Coca-Cola and Pepsi. Inca Cola is marketed as ‘the taste of Peru’ and includes Incan designs on the packaging labels, which invokes a passionate following for the drink among Peruvians. The drink held 26% in the soft drink market in 2012, followed by The Coca-Cola Company (NYSE:KO) at 25.5%. A report in the Sydney Morning Herald in 2023 stated that Inca Cola still outsells Coke in Peru.

13. Myanmar

Status: Limited Availability

The Coca-Cola Company (NYSE:KO) opened its first plant in over 60 years in Myanmar in 2013, after the military junta’s rule over the country ended in 2011, having led the country since 1962. PepsiCo, Inc. (NASDAQ:PEP), which operated in the country between 1991 and 1997 has also ramped up its operations through local partnerships to catch up with Coca-Cola. Local alternatives mimicking these brands, such as Star Cola and Max Cola, held sway over the carbonated drinks market in Myanmar until Coca-Cola relaunched itself in the market. However, despite that, Myanmar is one of the countries with lowest sales of Coca Cola and Pepsi.