ROANOKE TIMES 
                      Copyright (c) 1996, Roanoke Times

DATE: Thursday, September 12, 1996           TAG: 9609130035
SECTION: BUSINESS                 PAGE: B-7  EDITION: METRO 
DATELINE: PURCHASE, N.Y.
SOURCE: Bloomberg Business News

DURING COKE-SOAKED OLYMPICS, PEPSI CLAIMS A WIN

BUT THE RACE for sales is never over, and the lead is seldom clear, between the two big soft-drink rivals.

PepsiCo Inc. said its sales sprinted past Coca-Cola Co.'s during the Summer Olympics, even as its archrival funneled millions into promotions for the Games.

Supermarket sales of Pepsi-Cola vaulted 9 percent for the four weeks ended Aug. 11 - triple Coke Classic's 3.1 percent gain, said the nation's No. 2 soft-drink maker. It cited Information Resources Inc. data.

Pepsi attributed the gain to its Pepsi Stuff promotion, in which it has pledged to give away $125 million in sweatshirts and other merchandise. Pepsi's decision to cut prices in some areas also played a role, analysts said. Pepsi has reduced prices in Michigan, California and Texas in the last couple of months.

``You can shift share very easily with pricing, but it's profitable volume that counts in the end,'' said Caroline Levy, an analyst at Schroder Wertheim & Co. ``We'll have to see what the margins look like.''

Coke, the world's largest maker of soft drinks, was one of the biggest corporate supporters of the Games held in its hometown of Atlanta. It was expected to spend $300 million to $500 million.

Coke didn't provide comparable figures for the same period, but said the IRI numbers are consistent with results from A.C. Nielsen.

But Nielsen's data for the four-week period ending Aug. 3 - instead of Aug. 11 - showed Coke's sales growth outpaced Pepsi's in supermarkets, drugstores and mass merchandisers, said Coke spokesman Randy Donaldson. The Olympics ended Aug. 4.

Both companies have been spending more this year to boost sales in the slower-growing U.S. market as sales growth in some developing countries tapers off.

Pepsi didn't perform as well during the first half of the year, according to number released by Beverage Digest.

Coca-Cola's unit sales rose 8.2 percent for the six months - double PepsiCo's 3.5 percent gain - at food stores, gas stations, mass merchandisers and drugstores, according to A.C. Nielsen.

According IRI, Coke's unit sales grew 11.6 percent, while Pepsi's rose 6 percent.

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