Daniel Acker/Bloomberg via Getty Images NEW YORK -- Coca-Cola's first-quarter profit fell nearly 8 percent as the world's biggest beverage maker faced a stronger dollar and sold less soda. But the company sold more of its noncarbonated drinks worldwide, and its earnings matched expectations. The Atlanta-based company says global sales volume rose 2 percent. In its flagship North American market, soda volume slipped 1 percent as the company raised prices. Coca-Cola (KO), which also makes drinks including Sprite, Powerade and Dasani, has been under pressure to deliver stronger results, particularly back at home where Americans have been cutting back on soda for years. The company isn't alone in its struggles to boost soda sales. PepsiCo (PEP), which reports its earnings Thursday, has seen even steeper declines in its soda business despite stepped-up marketing, including sponsorship of the Super Bowl halftime show. Both companies sell a wide array of beverages, including sports drinks, bottled water and orange juice. But sodas remain a big part of their businesses, and they're scrambling to figure out ways to stop the declines. "Look, we have Coca-Cola, and we have another 500 brands. The key is to offer a wide variety of choices," CEO Muhtar Kent said in an interview on CNBC regarding the concerns about soda. To boost sales, the company plans slash costs and put the savings into marketing in the year ahead. It also introduced a version of its namesake soda sweetened with a mix of stevia and sugar in Argentina, with plans to eventually introduce the drink elsewhere. For the quarter ended March 28, net income fell to $1.62 billion, or 36 cents a share. That compares with net income of $1.77 billion, or 39 cents a share a year ago. Excluding one-time items, net income totaled 44 cents a share, matching analyst expectations. Revenue fell 4 percent to $10.58 billion. Analysts expected $10.5 billion. Companies like Coca-Cola that do a large portion of their business overseas take a hit to revenue when the dollar is strong, because foreign currencies convert back into fewer dollars. Why is the battle between Coke and Pepsi -- two ultimately similar types of sugar water -- the most important struggle in the history of capitalism? Simply put, their rivalry transcends time, distance, and culture. It has divided restaurants, presidents, and nations. It has been waged in supermarkets, stadiums, and courtrooms. Its many foot soldiers include Santa Claus, Cindy Crawford, Michael Jackson, Max Headroom, Bill Gates, and Bill Cosby. In 1886 an Atlanta chemist introduced Coca-Cola, a tasty "potion for mental and physical disorders." Pepsi-Cola followed seven years later, though it would be decades (and two bankruptcies) before Coke acknowledged the company in the way it had other competitive threats: lawsuits. Pepsi-Cola had made hay during the Depression. Like Coke, the drink cost a nickel, but it came in a 12-ounce bottle nearly twice the size of Coke's dainty, wasp-waisted one. But by the 1950s, Pepsi was still a distant No. 2. It nabbed Alfred Steele, a former Coke adman, who arrived embittered and ambitious. His motto: "Beat Coke." Coca-Cola refused to call Pepsi by name -- the drink was "the Imitator," "the Enemy," or, generously, "the Competition" -- but it began tinkering with its business (and imitating Pepsi) to stay ahead. In 1979, for the first time in the rivalry's history, Pepsi overtook Coke's sales in supermarkets. It didn't last, and by 1996, declared that the cola wars had ended. Since then Pepsi, with its increasing focus on health and snacks, has as good as surrendered. America's favorite two soft drinks? Coke and Diet Coke. Winner: Coke 1. Coke vs. Pepsi Ford, founded in 1903, and GM, which came along nine years later, have been warring for 101 years. The epitome of crosstown rivals -- their headquarters are just 11.5 miles apart -- they face off every day on dealer lots and in motor sports. Both maintain operations to scour the other's new products. In 2011, Ford marketing chief Jim Farley was quoted as having said, "I hate them and what they stand for." Meanwhile, GM chairman and CEO Dan Akerson recommended sprinkling holy water on ailing Ford luxury brand Lincoln. "It's over!"
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