The main objectiveof this seminar paper was to explain the concept of strategic rivalry in the beverage industry, with particular emphasis and analysis of two brand Coca Cola and Pepsi. As one of the fundamental tasks of strategic management is the formulation and implementation of strategies that will enable the company to sustain and maintain their desired industrial competitiveness. Business moves and competitive campaign rival in the market are influenced by each other and, most often, taken on the principle of action and reaction, which means that actions of a company produce equivalent successful or less successful countermoves of their rivals. When we look at the two biggest rivals in history of soft drinks production – Coca Cola and Pepsi, we could easily say that both brands depens on each other. Moreover, they need each other. In order for any company to be successful, and level up their brand awarenes, it needs worthy competitor. Coca Cola and Pepsi are successfuly managed to keep their market share over the years, sometimes they brushed each other out with some unpleasantly campaigns, but every time, they respected the market share that one of the companies earned. When we observe today's modern world, I am sure that companies like Coca Cola and Pepsi will have to shift their production in a whole new direction. New healthy trends and education about obesity and heart diseases caused by sugar are leaving Coca Cola and Pepsi in unfavorable position. After years and years of selling the concept of sugar water, these two companies needs to become partners, in order to compete with new competition called „healthy beverages“ and fight for „consumer's stomach“. The anti-obesity policy is strong in every country in the world. Even in Mexico, that had a worrying numbers regarding obese children under the age of 10, high rates of diabetes and deaths caused by obesity, health campaigns made an extraordinary work in informing people about their health.