riod and has recently decided to reorganize andretrain its local staff. Pepsi entered into a joint venture with a localfirm, Flora and Quadrant, for its Bucharest plant, and has 5 other factoriesin Romania. Quadrant leases Pepsi the equipment and handles Pepsi'sdistribution. In addition, Pepsi bought 500 Romanian trucks which are alsoused for distribution in other countries. Moreover, Pepsi produces itsbottles locally through an investment in the glass industry. While the priceof Pepsi and Coca-Cola are the same (@15 cents/bottle), some consumers drinkPepsi because Pepsi sent Michael Jackson to Romania for a concert. Anotherreason for drinking Pepsi is that it is slightly sweeter than Coca-Cola andis more suited for the sweet-toothed Romanians. Lastly, some drink Pepsibecause, in the past, only top officials were allowed to drink it, but noweveryone can. Coca-Cola only began producing locally in November 1991, but itis outselling all of its competitors. In 1992, Coca-Cola saw an increase inRomania of sales by 99.2% and outsold Pepsi by 6 to 5. While Pepsi preferredto buy its equipment from Romania, Coca-Cola preferred to bring equipmentinto Romania. Also, Coca-Cola brought 2 bottlers to Romania. One is theLeventis Group, which is privately owned. Coca-Cola has invested almost $25million into 2 factories. These factories are double the size of the factoryPepsi has in Bucharest. Moreover, Coca-Cola has a partnership with a localcompany, Ci-Co, in Bucharest and Brasov. Ci-Co has planned an aggressivepublicity campaign and has sponsored local sporting and cultural events.Lastly, Romanians drink Coke because it is a powerful western symbol whichwas once forbidden. Coke and Pepsi in The Czech Republic: The key to successin the Czech Republic is for both Coca-Cola and Pepsi to increase the annualconsumption of soft-drinks. Per capita consumption of beer, the nationaldrink in the Czech Republic, exceeds that of soft-drinks by 3 to 1(165 literso...
