So Coke loses market share for its secret formula cola to the off-brand cola and introduces Sprite (unfortunately I was around back then to remember) to regain part of its lost share. Depends on how the company looks to ensure long term competitive edge overall.
The ECNL players don't lose access to higher level competition, and a greater number of CESA customers benefit from potential access to higher levels of competition through separation of the rosters. CESA then offers "Coke" and "Sprite". (Later they figure out how to offer "Pizza Hut".)