Product details

Antonio Ortega, the owner of Bebida Sol, a private-label carbonated soft drink company based in Mexico, was contemplating whether to invest in a new zero-calories soda product line, Hola-Kola. This was the first major capital investment decision Antonio had to make after his father unexpectedly passed away. Through a market study, he collected some data about the potential market size and the costs associated with this new product line. Along with these data was also the fact that the new product line might severely erode his existing regular soda sales. He needed to determine if this capital investment was worth making and would create value for his company.