Question 1

Describe the market structure of the beverage industry.

Accepted Answer

The beverage industry is a highly competitive one,which is experiencing rapid rates of growth due to changes in taste and preferences of the population.The change in demographics as well as in the socio-economic profile of the population is giving rise to the demand for new products which emphasize nutrition and low calories,as well as products which have a health benefit.There are two dimensions of this industry -- the entire refreshment beverage market is monopolistic competition.However,if we focus only on firms that produce and sell carbonated soft drinks,then the market structure resembles more like an oligopoly.In addition,firms in this industry will have to constantly find ways to differentiate their products by identifying niche market segments and working with health professionals and keeping up with changing demographics,and design products which meet the special needs of the targeted groups.

Question 2

What are the main factors driving the food companies to change their product lines in the beverage industry and how has the industry responded?

Accepted Answer

America today is different than what it was a few decades ago.It's much more diverse in ethnicity and socio-economic composition,the percentage of population which are classified as the aged and elderly is increasing,the percentage of population which is classified as obese is increasing,the incidence of cardio-vascular and cancer diseases is rising and so on.To meet the changing needs of the population,the food and beverage industry has responded by introducing new and innovative products to meet the challenges posed by the size and composition of the society.

Question 3

Which of the following best describes the entire U.S.refreshment beverage market?&#10;A)monopoly&#10;B)oligopoly&#10;C)monopolistic competition&#10;D)perfect competition

Accepted Answer

The U.S. refreshment beverage market is characterized by monopolistic competition, as there are many firms producing similar but not identical products, such as carbonated soft drinks, energy drinks, sports beverages, and bottled water. Each firm tries to differentiate its product through branding, packaging, and advertising. While there are some larger players in the industry, no single firm has complete control over the market.

Question 4

Demand in the refreshment beverage market has been changing due to&#10;A)changes in income.&#10;B)changes in taxes and subsidies.&#10;C)changes in the number of buyers.&#10;D)changes in tastes and preferences.

Accepted Answer

Demand in the refreshment beverage market is driven by changes in the tastes and preferences of consumers. As consumers' preferences change, so does the demand for different types of refreshment beverages. For example, consumers' increasing interest in health and wellness has led to a growing demand for healthier beverage options like water, tea, and natural fruit juices, while soft drink sales have declined.

Question 5

The demand for organically grown food is&#10;A)increasing.&#10;B)decreasing.&#10;C)stagnant.&#10;D)unpredictable.

Accepted Answer

The word "demand" indicates that this is asking about the market for organically grown food. The prefix "organi-" typically refers to natural or eco-friendly practices, which are becoming increasingly popular among consumers. Therefore, the demand for organically grown food is likely increasing.

Question 6

&#34;Localvores&#34; refers to food products which are&#10;A)organically produced.&#10;B)imported from foreign countries.&#10;C)grown in places which are close to the point of consumption.&#10;D)provide health and nutritional benefits in combating diseases.

Accepted Answer

"Localvores" are individuals who strive to consume food products that are grown or produced in places close to their point of consumption. Therefore, the answer is C, as the other choices do not accurately describe what "Localvores" are.

Question 7

As the U.S.population ages,the structure of the demand for food products will change with&#10;A)an increase in the demand for red meat products and a decrease in the demand for fish and poultry.&#10;B)an increase in the demand for dairy products and a decrease in the demand for red meat.&#10;C)an increase in the demand for fruits,vegetables and fish and a decrease in demand for fried foods,dairy products and items that contain a lot of sugar.&#10;D)an increase in the demand for beverages and drinks and a decrease in the demand for solid food.

Accepted Answer

As the population ages, there is a tendency towards healthier eating habits in order to maintain good health. This translates to an increase in the demand for fruits, vegetables, and fish which are known to have health benefits. On the other hand, there is a decrease in demand for fried foods, dairy products, and items that contain a lot of sugar which are associated with negative health consequences. There is no evidence to suggest that there will be an increase in demand for red meat or dairy products, or a decrease in the demand for fish and poultry in particular. Option D, which suggests an increase in demand for beverages and drinks, is too broad and does not offer specific details regarding the types of drinks in question.

Question 8

The demand for U.S.produced packaged food products in foreign countries is expected to&#10;A)grow.&#10;B)slow down.&#10;C)remain constant.&#10;D)fluctuate.

Accepted Answer

As economies continue to develop, consumers in foreign countries are increasingly interested in purchasing packaged food products from the U.S. Additionally, the COVID-19 pandemic has caused some disruptions in supply chains, leading to increased demand for U.S. products. Therefore, the demand for U.S.-produced packaged food products in foreign countries is expected to grow.

Deck 15: The Global Soft Drink Industry