The Coca-Cola Company

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This article is about the company. For the carbonated beverage, see Coca-Cola.
The Coca-Cola Company
Public
Traded as NYSEKO
Dow Jones Industrial Average Component
S&P 500 Component
Industry Beverage
Founded 1886; 129 years ago (1886)
Founder Asa Griggs Candler, John Pemberton created the soft drink/beverage "Coca-Cola", but it was Asa Candler, who founded The Coca-Cola Company.
Headquarters One Coca-Cola Plaza,
Atlanta, Georgia
, United States
Area served
Worldwide
Key people
Products List of The Coca-Cola Company products
Revenue Increase US$ 46.854 billion (2013)[1]
Increase US$ 10.228 billion (2013)[1]
Increase US$ 8.584 billion (2013)[1]
Total assets Increase US$ 90.055 billion (2013)[1]
Total equity Increase US$ 33.44 billion (2013)[1]
Number of employees
130,600 (Dec 2013)[1]
Subsidiaries List of The Coca-Cola Company subsidiaries
Website Coca-ColaCompany.com

The Coca-Cola Company is an American multinational beverage corporation and manufacturer, retailer, and marketer of nonalcoholic beverage concentrates and syrups, which is headquartered in Atlanta, Georgia.[2] The company is best known for its flagship product Coca-Cola, invented in 1886 by pharmacist John Stith Pemberton in Columbus, Georgia.[3] The Coca-Cola formula and brand was bought in 1889 by Asa Griggs Candler (December 30, 1851 – March 12, 1929), who incorporated The Coca-Cola Company in 1892. The company operates a franchised distribution system dating from 1889 where The Coca-Cola Company only produces syrup concentrate which is then sold to various bottlers throughout the world who hold an exclusive territory. The Coca-Cola Company owns its anchor bottler in North America, Coca-Cola Refreshments.

Its stock is listed on the NYSE and is part of DJIA; S&P 500 index; the Russell 1000 Index; and the Russell 1000 Growth Stock Index. As of 2015, its chairman and CEO is Muhtar Kent.

Acquisitions[edit]

The company has a long history of acquisitions. Coca-Cola acquired Minute Maid in 1960,[4] the Indian cola brand Thums Up in 1993,[5] and Barq's in 1995.[6] In 2001, it acquired the Odwalla brand of fruit juices, smoothies, and bars for $181 million.[7][8] In 2007, it acquired Fuze Beverage from founder Lance Collins and Castanea Partners for an estimated $250 million.[9][10] The company's 2009 bid to buy a Chinese juice maker ended when China rejected its $2.4 billion bid for the Huiyuan Juice Group on the grounds that it would be a virtual monopoly.[11] Nationalism was also thought to be a reason for aborting the deal.[12] In 1982, Coca-Cola purchased Columbia Pictures for $692 million. It sold the movie studio to Sony for $3 billion in 1989.[13]

Revenue[edit]

The Coca-Cola Company's Minute Maid group North America offices in Sugar Land Town Square, Sugar Land, Texas, United States

According to the 2005 Annual Report,[14] the company sells beverage products in more than 200[15] countries. The report further states that of the more than 50 billion beverage servings of all types consumed worldwide every day, beverages bearing the trademarks owned by or licensed to Coca-Cola account for approximately 1.5 billion (the latest figure in 2010 shows that now they serve 1.6 billion drinks every day). Of these, beverages bearing the trademark "Coca-Cola" or "Coke" accounted for approximately 78% of the company's total gallon sales.

Also according to the 2007 Annual Report, Coca-Cola had gallon sales distributed as follows:

  • 43% in the United States
  • 37% in Mexico, India, Brazil, Japan and the People's Republic of China
  • 20% spread throughout the rest of the world

In 2010, it was announced that Coca-Cola had become the first brand to top £1 billion in annual UK grocery sales.[16]

Stock[edit]

Since 1920, Coca-Cola has been a publicly traded company.[17] One share of stock purchased in 1919 for $40, with all dividends reinvested, would be worth $9.8 million in 2012, a 10.7% annual increase, adjusted for inflation.[18] In 1987, Coca-Cola once again became one of the 30 stocks which makes up the Dow, the Dow Jones Industrial Average, which is commonly referenced as the performance of the stock market. It had previously been a Dow stock from 1932 to 1935.[19] Coca-Cola has paid a dividend, increasing each year for 49 years.[20][21] Stock is available from a direct purchase program, through Computershare Trust Company, but unlike many programs, has investment fees.[22]

Consumer relations[edit]

Throughout 2012, Coca-Cola contributed $1,700,500 to a $46 million political campaign known as "The Coalition Against The Costly Food Labeling Proposition, sponsored by Farmers and Food Producers".[23] This organization was set up to oppose a citizen's initiative, known as Proposition 37, demanding mandatory labeling of foods containing genetically modified ingredients.

Bottlers[edit]

Houston Coca-Cola Bottling Company
1996–2002 Chevrolet Express wagon from The Coca-Cola Company.

In general, The Coca-Cola Company and its subsidiaries only produce syrup concentrate, which is then sold to various bottlers throughout the world who hold a Coca-Cola franchise. Coca-Cola bottlers, who hold terrestrially exclusive contracts with the company, produce the finished product in cans and bottles from the concentrate in combination with filtered water and sweeteners. The bottlers then sell, distribute and merchandise the resulting Coca-Cola product to retail stores, vending machines, restaurants and food service distributors.

One notable exception to this general relationship between The Coca-Cola Company and bottlers is fountain syrups in the United States, where the company bypasses bottlers and is responsible for the manufacture and sale of fountain syrups directly to authorized fountain wholesalers and some fountain retailers. The Coca-Cola Company currently owns Coca-Cola Refreshments, the anchor bottler of Coca-Cola products in North America. Coca-Cola Refreshments consists of bottlers formerly owned by Coca-Cola Enterprises.

Civil rights[edit]

After Martin Luther King, Jr. won the 1964 Nobel Peace Prize, plans for an interracial celebratory dinner in still-segregated Atlanta were not initially well supported by the city's business elite until Coca-Cola intervened.[24]

J. Paul Austin, the chairman and CEO of Coca-Cola, and Mayor Ivan Allen summoned key Atlanta business leaders to the Commerce Club's eighteenth floor dining room, where Austin told them flatly, 'It is embarrassing for Coca-Cola to be located in a city that refuses to honor its Nobel Prize winner. We are an international business. The Coca-Cola Co. does not need Atlanta. You all need to decide whether Atlanta needs the Coca-Cola Co.' Within two hours of the end of that meeting, every ticket to the dinner was sold.

Criticism[edit]

Australia[edit]

In 2013 the company was criticized for undertaking litigation that led to the invalidation of a bottle recycling deposit.[26][27]

Animal testing[edit]

In 2007, the Coca-Cola Company announced it would no longer conduct or directly fund laboratory experiments on animals unless required by law to do so. The company's announcement came after PETA criticized the company for funding invasive experiments on animals including one study in which experimenters cut into the face of chimpanzees to study the animals' nerve impulses used in the perception of sweet taste. Some experimenters have criticized PETA's campaign against Coca-Cola and other companies claiming that their work would be undermined if they lost corporate funding.[28]

Vitamin Water lawsuit[edit]

In January 2009, the US consumer group the Center for Science in the Public Interest filed a class-action lawsuit against Coca-Cola.[29] The lawsuit was in regards to claims made, along with the company's flavors, of Vitamin Water. Claims say that the 33 grams of sugar are more harmful than the vitamins and other additives are helpful. Coca-Cola insists the suit is "ridiculous."[30][31]

Products and brands[edit]

Coca-Cola Company's office building in Madrid (Spain).

The Coca-Cola Company offers more than 350 brands in over 200 countries, aside from its namesake Coca-Cola beverage.

Brands[edit]

Tab[edit]

Tab was Coca-Cola's first attempt to develop a diet soft drink, using saccharin as a sugar substitute. Introduced in 1963, the product is still sold today, although its sales have dwindled since the introduction of Diet Coke. The Tab soft drink is difficult to locate in recent times, due to its de facto replacement by Diet Coke.[citation needed]

Other soft drinks[edit]

The Coca-Cola Company also produces a number of other soft drinks including Fanta (introduced circa 1941) and Sprite. Fanta's origins date back to World War II during a trade embargo against Germany on cola syrup, making it impossible to sell Coca-Cola in Germany. Max Keith, the head of Coca-Cola's German office during the war, decided to create a new product for the German market, made from products only available in Germany at the time, which they named Fanta.[32] The drink proved to be a hit, and when Coke took over again after the war, it adopted the Fanta brand as well. Fanta was originally an orange flavored drink which can come in plastic bottles or cans. It has become available in many different flavors now such as grape, peach, grapefruit, apple, pineapple and strawberry.

In 1961 Coca-Cola introduced Sprite, another of the company's bestsellers and its response to 7 Up.

An ad in Berlin, Germany.

Coca-Cola South Africa also released Valpre Bottled "still" and "sparkling" water.

Columbia Pictures[edit]

Coca-Cola bought Columbia Pictures in 1981 owing to the low monetary value of the studio. The film company was the first and only studio ever owned by Coca-Cola. During its ownership of the studio (their introduction to the film industry), the studio released many popular films including Ghostbusters, Stripes, The Karate Kid, and some others. However, after the 1987 film Ishtar, Columbia was sold to Sony Pictures Entertainment.

Breakmate[edit]

Main article: BreakMate

No longer manufactured, the Coca-Cola BreakMate was a three-flavour dispenser introduced by Coca-Cola and Siemens in 1988. Intended for use in offices with five to fifty people,[33] its refrigerated compartment held three individual one-litre plastic containers of soda syrup and a CO2 tank. Like a soda fountain, it mixed syrup in a 1:5 ratio with carbonated water. In North America, Coca-Cola discontinued spare BreakMate parts in 2007 and stopped distributing the syrup in 2010.[34]

Healthy beverages[edit]

During the 1990s, the company responded to the growing consumer interest in healthy beverages by introducing several new non-carbonated beverage brands. These included Minute Maid Juices to Go, Powerade sports beverage, flavored tea Nestea (in a joint venture with Nestle), Fruitopia fruit drink and Dasani water, among others. In 2001, Minute Maid division launched the Simply Orange brand of juices including orange juice.

In 2004, perhaps in response to the burgeoning popularity of low-carbohydrate diets such as the Atkins diet, Coca-Cola announced its intention to develop and sell a low-carbohydrate alternative to Coke Classic, dubbed C2 Cola. C2 contains a mix of high fructose corn syrup, aspartame, sucralose, and Acesulfame potassium. C2 is designed to more closely emulate the taste of Coca-Cola Classic. Even with less than half of the food energy and carbohydrates of standard soft drinks, C2 is not a replacement for zero-calorie soft drinks such as Diet Coke. C2 went on sale in the U.S. on June 11, 2004, and in Canada in August 2004. C2's future is uncertain due to disappointing sales.

Starting in 2009 The Coca-Cola Company invested in Innocent Drinks, first with a minor stake, increasing to 90% in the first quarter of 2013.

Best selling[edit]

Coca-Cola is the best-selling soft drink in most countries, and was recognized as the number one global brand in 2010.[35] While the Middle East is one of the only regions in the world where Coca-Cola is not the number one soda drink, Coca-Cola nonetheless holds almost 25% marketshare (to Pepsi's 75%) and had double-digit growth in 2003.[36] Similarly, in Scotland, where the locally produced Irn-Bru was once more popular, 2005 figures show that both Coca-Cola and Diet Coke now outsell Irn-Bru.[37] In Peru, the native Inca Kola has been more popular than Coca-Cola, which prompted Coca-Cola to enter in negotiations with the soft drink's company and buy 50% of its stakes. In Japan, the best selling soft drink is not cola, as (canned) tea and coffee are more popular.[38] As such, The Coca-Cola Company's best selling brand there is not Coca-Cola, but Georgia.[39]

Information[edit]

On July 6, 2006, a Coca-Cola employee and two other people were arrested and charged with trying to sell trade secrets information to the soft drink maker's competitor, PepsiCo for $1.5 million. The recipe for Coca-Cola, perhaps the company's most closely guarded secret, was never in jeopardy. Instead, the information was related to a new beverage in development. Coca-Cola executives verified that the documents were valid and proprietary. At least one glass vial containing a sample of a new drink was offered for sale, court documents said. The conspiracy was revealed by PepsiCo, which notified the authorities when they were approached by the conspirators.[40]

Green tea[edit]

The company announced a new "negative calorie" green tea drink, Enviga, in 2006, along with trying coffee retail concepts Far Coast and Chaqwa.

Glaceau[edit]

On May 25, 2007, Coca-Cola announced it would purchase Glaceau, a maker of flavored vitamin-enhanced drinks (vitamin water), flavored waters, and Burn energy drinks, for $4.1 billion in cash.[41]

Huiyuan Juice[edit]

On September 3, 2008, Coca-Cola announced its intention to make cash offers to purchase China Huiyuan Juice Group Limited (which has a 42% share of the Chinese pure fruit juice market[42]) for US$2.4bn (HK$12.20 per share).[43] China's ministry of commerce blocked the deal on March 18, 2009, arguing that the deal would hurt small local juice companies, could have pushed up juice market prices and limited consumers' choices.[44]

Coke Minilmini[edit]

In October 2009, Coca-Cola revealed its new 90-calorie mini can that holds 7.5 fluid ounces.[45] The first shipments are expected to reach the New York City and Washington D.C. markets in December 2009 and nationwide by March 2010.[45][dated info]

Holiday can[edit]

In November 2011 for the Winter Holidays, Coca-Cola revealed a white can that contained regular Coke instead of Diet Coke, but it was quickly withdrawn only a month after release due to consumer complaints about the similar look to the silver cans commonly used for Diet Coke. There were also complaints about deviating from the traditional red color of Coca-Cola cans.[46]

World of Coca-Cola[edit]

Coca-Cola operates a soft drink themed tourist attraction in downtown Atlanta, Ga; the "World of Coca-Cola" is a multi-storied exhibition of the many flavors sold by the company as well as a museum to the history of the company.

Stake in Monster[edit]

It was announced on August 14, 2014, that Coca-Cola Co is making a cash payment of $2.15 billion for a 16.7 percent stake in Monster Beverage Corp to expand its market for energy drinks. Coke's ownership in Full Throttle and Burn will be transferred to Monster. In return, Monster will transfer its ownership in Hansen's Natural Sodas and Peace Iced Tea to Coke. Muhtar Kent, Coke's Chief Executive Officer, stated that the company has the option to increase its stake to 25 percent but cannot exceed that percentage in the next four years.[47][48]

Sponsorship[edit]

Coca-Cola's advertising expenses accounted for US$3.256 billion in 2011.[49]

Sports[edit]

Coca-Cola sponsored the English Football League from the beginning of the 2004–05 season (beginning August 2004) to the start of 2010/11 season, when the Football League replaced it with NPower.

Along with this, Coca-Cola sponsored the Coca-Cola Football Camp, that took place in Pretoria, South Africa during the 2010 FIFA World Cup, during which hundreds of teenagers from around the world were able to come together and share their love of the game, partly due to Best Buy's efforts through their @15 program.[50]

Other major sponsorships include NHRA, NASCAR, the PGA Tour, NCAA Championships, the Olympic Games, the NRL, the FIFA World Cups and the UEFA European Championships.

In the Philippines, it has a team in the Philippine Basketball Association, the Powerade Tigers.

Television[edit]

The company sponsors the hit Fox singing-competition series American Idol. Coca-Cola is a sponsor of the nightly talk show on PBS, Charlie Rose in the US.[51]

Theme Parks[edit]

While not necessarily having naming rights to anything in all locations, the company does sponsor and provide beverages in many theme parks, usually in an exclusive capacity. This includes the Walt Disney Parks and Resorts, Merlin Entertainment, Universal Parks & Resorts, Six Flags, Cedar Fair, SeaWorld Entertainment, and Parques Reunidos, which are seven of the eight largest theme park operators worldwide (it is unknown whether OCT Parks China, the fourth largest theme park operator, uses Coca-Cola).[52]

Mr. Yaron Meiri, CEO of the Orpan Group, was a consultant for the Euro-Asian division of Coca-Cola, designing and producing the "Coca-Cola's" visitor centers in Israel and Turkey. [53] [54]

See also[edit]

References[edit]

  1. ^ a b c d e f The Coca-Cola Company Form 10-K, Securities and Exchange Commission, February 27, 2014
  2. ^ "The Coca-Cola Brands". coca-colacompany.com. Retrieved December 19, 2012. 
  3. ^ "Who Invented Coca Cola?". Whoinventedit.net. Retrieved November 2, 2012. 
  4. ^ "History of The Minute Maid Company". Fundinguniverse.com. Retrieved July 29, 2012. 
  5. ^ "Strong Cola Taste, Macho Personality". Archived from the original on 2009-02-26. 
  6. ^ Barq's Root Beer: History, Coca-Cola, retrieved January 2, 2013.
  7. ^ "Coca Cola, Form SC TO-T, Filing Date Oct 30, 2001". secdatabase.com. Retrieved March 27, 2013. 
  8. ^ "Coke Buys Odwalla". (October 30, 2001).CNN Money.
  9. ^ "Coca Cola, Form 10-K, Annual Report, Filing Date Feb 21, 2007" (PDF). secdatabase.com. Retrieved March 27, 2013. 
  10. ^ "Coca-Cola Buys Fuze Beverage". (February 12, 2007) Boulder Daily Camera.
  11. ^ "Coca Cola, Form 10-Q, Quarterly Report, Filing Date Apr 30, 2009". secdatabase.com. Retrieved March 27, 2013. 
  12. ^ "Coke's China juice move collapses". BBC News. March 18, 2009. Retrieved May 25, 2010. 
  13. ^ Sellers, Patricia; Woods, Wilton (October 13, 1997). "WHERE COKE GOES FROM HERE". Fortune. Retrieved October 10, 2011. 
  14. ^ "Coca Cola Company Form 10-K 2005". SEC. Retrieved May 11, 2006. 
  15. ^ this being somewhat more countries than are generally agreed to exist http://www.worldatlas.com/nations.htm
  16. ^ "Coke sales first to top £1bn". Edinburgh Evening News. March 19, 2010. Retrieved March 20, 2010. 
  17. ^ http://heritage.coca-cola.com/
  18. ^ One Share of Stock Now Worth $9.8 Million -- Is It Really Possible?
  19. ^ Decades of Great Performance From 9 Dow Stocks
  20. ^ The Coca-Cola Company Dividends
  21. ^ Coca-Cola shareholders OK 2-for-1 stock split
  22. ^ Coca Cola (KO) DRIP
  23. ^ Who's Funding Prop 37, Labeling for Genetically Engineered Foods? | Propositions | Elections 2012. KCET. Retrieved on December 23, 2013.
  24. ^ "NOBEL PEACE PRIZE: In 1964, award to King stirred a storm". Atlanta Journal-Constitution. December 10, 2002. 
  25. ^ Andrew Young (1996). An Easy Burden. HarperCollins. ISBN 978-0-06-092890-2. OCLC 34782719. 
  26. ^ "Coca-Cola wins Federal Court case, cash for containers recycling found illegal". 
  27. ^ "Anger at Coke's successful bid to abolish Northern Territory recycling deposit". 
  28. ^ Goodman, Brenda (31 May 2007). "Pepsi and Coke Agree to Stop Financing Research That Uses Animals". New York Times. Retrieved 10 February 2015. 
  29. ^ "Coke Sued for Fraudulent Claims on Obesity-Promoting "VitaminWater"". Center for Science in the Public Interest. January 15, 2009. Retrieved July 29, 2012. 
  30. ^ "Statement on The glacéau vitaminwater Lawsuit". Archived from the original on 2013-01-16. 
  31. ^ "Coca-Cola sued over VitaminWater claims". MSNBC. 
  32. ^ Mikkelson, Barbara (April 29, 2011). "The Reich Stuff?". Snopes. Retrieved May 8, 2014. 
  33. ^ "Coca-Cola seeping into coffee breaks". Eugene Register-Guard. November 19, 1988. 
  34. ^ "Coca Cola Refreshments Discontinues BreakMate Syrup". VendingMarketWatch. Retrieved September 21, 2014. 
  35. ^ "Best Global Brands Ranking for 2010". Interbrand.com. Retrieved July 29, 2012. 
  36. ^ "Coke and Pepsi battle it out". AME Info. April 8, 2004. Retrieved May 11, 2006. 
  37. ^ Terry Murden (January 30, 2005). "Coke adds life to health drinks sector". Scotland On Sunday (UK). Retrieved May 11, 2006. 
  38. ^ Japan Soft Drink Association
  39. ^ Coca-Cola West Japan IR report (in Japanese), 2008.
  40. ^ Day, Kathleen (July 6, 2006). "3 Accused In Theft Of Coke Secrets". The Washington Post. Retrieved July 15, 2006. 
  41. ^ Stanford, Duane (May 25, 2007). "Coke to buy Glaceau in $4 billion deal". Atlanta Journal-Constitution. Archived from the original on May 27, 2007. Retrieved May 25, 2007. 
  42. ^ Tucker, Sundeep (March 17, 2009). "Coca-Cola's $2.4bn China deal at risk". Financial Times (Hong Kong). Retrieved March 17, 2009. 
  43. ^ "THE COCA-COLA COMPANY Media Center". 
  44. ^ Tucker, Sundeep (March 18, 2009). "China blocks Coca-Cola bid for Huiyuan". Financial Times (Hong Kong). Retrieved March 18, 2009. 
  45. ^ a b Plumb, Tierney (October 14, 2009). "Coca-Cola to unveil mini cans in D.C.". Washington Business Journal/Bizjournals.com. 
  46. ^ Esterl, Mike (December 1, 2011). "A Frosty Reception for Coca-Cola's White Christmas Cans". The Wall Street Journal. 
  47. ^ ATHAVALEY, ANJALI (August 15, 2014). "Coca-Cola pays $2.2 billion for major stake in Monster Beverage". Reuters. Retrieved August 15, 2014. 
  48. ^ GELLES, DAVID (August 14, 2014). "Coke to Buy Stake in Monster Beverage for $2.15 Billion". New York Times. Retrieved August 15, 2014. 
  49. ^ 2011 Annual Report (PDF), retrieved January 4, 2013 
  50. ^ "Teens Gear up for Soccer in South Africa". NewsBlaze.com. Retrieved June 29, 2011. 
  51. ^ "About the program". Charlie Rose. Retrieved July 29, 2012. 
  52. ^ Rubin, Judith; Au, Tsz Yin (Gigi); Chang, Beth; Cheu, Linda; Elsea, Daniel; LaClair, Kathleen; Lock, Jodie; Linford, Sarah; Miller, Erik; Nevin, Jennie; Papamichael, Margreet; Pincus, Jeff; Robinett, John; Sands, Brian; Selby, Will; Timmins, Matt; Ventura, Feliz; Yoshii, Chris. "TEA/AECOM 2014 Theme Index & Museum Index: The Global Attractions Attendance Report" (PDF). aecom.com. Themed Entertainment Association (TEA). Retrieved 4 June 2015. 
  53. ^ "Interview about the attractions park for Coca-Cola Turkey". cafe.themarker.com. 
  54. ^ "Coca-Cola Visitors Centre Turkey". mefik.co.il. 

Further reading[edit]

External links[edit]