Fizz in the Air: Coke Holds Cola Exclusivity on Most Airlines.
American Juggles Two Colas.

Coke continues domination of in-flight airlines cola business, but Dr Pepper/Seven Up is only major franchisor with presence on all top-10 airlines. Recent lemon-lime shift by Pepsi benefits 7UP, but possibly only for time being. BD's fourth annual review of in-flight beverage consumption covers full-year 1999, latest data available; updates BD 9/24/99. Coke holds cola exclusivity on six of top-10 airlines; Pepsi on three; Coke and Pepsi both are available on American Airlines following 1998 deal (BD 5/28/98).

Table. Shows airlines ranked by 1999 airline passenger miles; 1999 CSD volume in 192-oz cases; share of total CSD volume; and cola served on each airline. Revenue miles data from Air Transport Association; soft drink data from eight of 10 airlines; Delta, United and "all other" are estimated. Segments. BD estimates colas represent about 50% of in-flight CSD volume; lemon-lime 20%; Pepper 7%; mixers most of balance.

American. Airline serves multiple Coca-Cola Co products plus several colas from Pepsi. Executive tells BD Coke products account for about 70% of non-mixer CSD volume in 1999; Pepsi's colas 30%. American executive says: "Managing a two-cola policy is a bit tricky. We review market share for each (cola) and trend demand through our flight attendant reports ... We also conduct customer surveys ... Using this information we adjust provisioning to closer match customer demand."

Cadbury. Company's Canada Dry mixers present on all top-10 airlines in 1999. Dr Pepper or Diet Dr Pepper available on six of top-10 in 1999. 7UP recently replaces Slice on TWA and Northwest, as Pepsi discontinues Slice to launch Sierra Mist. Northwest and TWA executives say lack of diet version of Sierra Mist leads airlines to choose 7UP instead. However, TWA executive says "we'll go back to Pepsi's lemon-lime when a diet is available ... they're telling us six months or more." Pepsi executive says "Diet Sierra Mist is something we're considering" but launch not imminent.

Brand shifts. Beyond lemon-lime changes on Pepsi airlines, brand choice changes since early 1999: 1) American will add Diet Pepsi in 2001. Company drops Barq's root beer, Nestea Cool tea, Caffeine-Free Diet Coke and Pepsi One in 2000. American executive says beverage cart choices are based on "salvage studies (and) customer and flight attendant feedback." 2) TWA switches to Motts juices, drops Bluebird brand. Also switches to Crystal Geyser water from Naya. 3) US Airways replaces Adirondack seltzer with Canada Dry. Thirst driver. US Airways reports 43.8 mil bags of Fisher lightly salted peanuts distributed in-flight during 1999.