A New-Age Drink War Starts As Soda Flops

Pepsi's purchase of Gatorade and SoBe takes the marketing battle with Coke to a hot new segment

You can forgive Pepsi chairman Roger Enrico for bubbling over with enthusiasm last week as he announced the company's $13 billion purchase of food-and-drink giant Quaker Oats. Pepsi, as second fiddle to archrival Coke in the cola wars, doesn't get that many chances to declare victory. So Enrico, who has recently put some fizz back in the company, wasn't about to pass up this rare opportunity. "We are the category captain, 1 1/2 times the size of the next largest player," he declared.

The runner-up in this case, of course, is Coke, but Enrico wasn't referring to the $58 billion U.S....

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