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American soft drink companies enter Iranian market February 28, 2007

Posted by Meg in Business-Society Issues, Consumers, Organizational Environment.

Recently, Coca-Cola and PepsiCo have entered the Iranian market, a marketplace prohibited from most American companies as a result of Washington-based sanctions. These two companies, however, are food. So, they have been able to not only enter the market but flourish as well. Their biggest competitor aside from each other is Iranian cola, Zamzam named after a well in Mecca, the holiest place according to Islam. As a result, most of Iran’s conservatives prefer that citizens choose this particular soft drink over those supplied by the rather despised United States.

One of the political issues regarding the U.S. that particularly angers many Iranians is the relationship with Israel. Many conservatives believe that the profits generated by both Coke and Pepsi are supporting Israel. One particular prominent Iranian declared that Pepsi stands for “Pay each penny to save Israel.”

But, the majority of the population is tired of the tension that exists between the Iranian and American governments, and purchase either Coke or Pepsi simply because they prefer the taste. The products origins are of little concern to them. All I have to say is that if Coke and Pepsi can lead to peace between the U.S. and Iran, maybe they should enter the Iraqi market.



1. wilson7 - February 28, 2007

I believe that if the intergration of Coke and Pepsi into this new market can somehow help our two countries become closer together than I’m all for it. Iranians enjoy some American merchandise but sometimes do not buy these items because of their dislike for our government. If these two soda companies can some how find a way to bring our two cultures closer than this would be in the best interest of both nations.

2. breichen - February 28, 2007

It does not surprise me that Coke and consequently Pepsi ,have penetrated the Iranian market. Let’s face it, Coke can be found everywhere. Although I do find it rather surprising that it is flourishing in a market that is not so welcoming of American products. I think what it comes down to is that Coke is Coke, and ZamZam just doesn’t compare.

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