cola wars

Pepsi is hoping to win back soda drinkers with a compromise. Some people don't like the calories in regular soda, but loathe the taste of zero-calorie diet drinks. So the nation's No. 2 cola company is rolling out "Pepsi Next," a cola that has about half the calories of regular Pepsi at 60 calories per can.

Rafi Mohammed, author of The Art of Pricing, says Coca-Cola is selling itself short. Some of its beverages, such as Coke Zero, could be priced higher, potentially raising the company's margin and profit. But in the Cola Wars, could higher prices cause a customer retreat?

A soft U.S. dollar and cautious consumers in many world markets kept Coca-Cola Co. (KO) profits in check in the third quarter. But Coke executives stressed on Tuesday that the company's fundamentals remain strong as does growth in key emerging markets. "Our company's focus on a consistent set of...