Abstract: This study examines the impacts of vertical integration between Coca-Cola, PepsiCo, and their formerly partially-owned bottlers. Besides efficiency gains, the FTC was concerned about foreclosure affecting Dr Pepper. Using DID, I find lower prices for integrated drinks and higher prices for Dr Pepper after integration. Then I use a structural model to estimate demand and quantify the brand-level elasticities, which shows that consumers primarily substitute within diet and sugary categories, with low brand-level price elasticities. Finally, I develop a vertical model of syrup producers and bottlers that incorporates partial ownership and estimate the pricing effects of vertical integration, which highlights that foreclosure incentives may outweigh the efficiency gains.