US Cola Giants Getting the Fizz Back in Business

DAMMAM, 31 July 2003 — The recent objection of the Ministry of Commerce to the brand name Zamzam Cola may have come as a relief to the two American cola giants, which have been hit by a boycott for the past 18 months over America’s double standards on Palestine.

An official of one of the two American companies, who spoke on condition of anonymity, admitted that the boycott has affected their sales. However, he ridiculed the idea that other colas would capture their market. The two American colas and their other aerated drinks have nearly 85 percent of the market share. Pepsi continues to be the leader in the market. Coca-Cola made a late re-entry into the market after a long ban and was able to make inroads into the Pepsi market.

All these years the two giants have been involved in their own cola war. Each has been trying to undermine the other through advertisements, sponsorships, prizes and other gimmicks.

The boycott led to the entry of more than half dozen colas from elsewhere in the world. Zamzam Cola from Iran was one such product.

Zamzam Cola, however, caught the imagination of local residents as it had a very Islamic name. In a very short time it made its presence felt in the market, but officials at both the American companies shrugged off any threat.

They say that the impact of the boycott is diminishing, especially now the Iraq war is over. Supermarkets have confirmed this.

“Things have improved for Coca-Cola and Pepsi and people are gradually returning to them. The boycott is dying down,” said a counter salesman at Al-Wesham Supermarket in Dammam.

Most fast food chains, local and foreign both, sell only the two American colas, and customers have little choice but to buy them. Interestingly, some of the indigenous fast food outlets that profited on the American boycott are also selling one of the two colas and their other soft drinks.

“Zamzam Cola is the only drink which had the potential to make a dent into the market of these two American soft drink companies. Its name was the biggest attraction,” said Al-Wesham staff.