The Coca-Cola Company
Coca-Cola headquarters: Coca-Cola's corporate headquarters in Atlanta, Georgia, United States of America
|Traded as||NYSE: KO
Dow Jones Industrial Average Component
S&P 500 Component
|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
|Products||List of The Coca-Cola Company products|
|Revenue||US$ 46.854 billion (2013)|
|US$ 10.212 billion (2015)|
|US$ 8.584 billion (2013)|
|Total assets||US$ 90.055 billion (2013)|
|Total equity||US$ 33.44 billion (2013)|
Number of employees
|130,600 (Dec 2013)|
|Subsidiaries||List of The Coca-Cola Company subsidiaries|
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. The company is best known for its flagship product Coca-Cola, invented in 1886 by pharmacist John Stith Pemberton in Columbus, Georgia. 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.
- 1 Acquisitions
- 2 Revenue
- 3 Stock
- 4 Consumer relations
- 5 Bottlers
- 6 Civil rights
- 7 Criticism
- 8 Products and brands
- 9 Sponsorship
- 10 See also
- 11 References
- 12 Further reading
- 13 External links
The company has a long history of acquisitions. Coca-Cola acquired Minute Maid in 1960, the Indian cola brand Thums Up in 1993, and Barq's in 1995. In 2001, it acquired the Odwalla brand of fruit juices, smoothies, and bars for $181 million. In 2007, it acquired Fuze Beverage from founder Lance Collins and Castanea Partners for an estimated $250 million. 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. Nationalism was also thought to be a reason for aborting the deal. In 1982, Coca-Cola purchased Columbia Pictures for $692 million. It sold the movie studio to Sony for $3 billion in 1989.
According to the 2005 Annual Report, the company sells beverage products in more than 200 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.
Since 1920, Coca-Cola has been a publicly traded company. 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. 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. Coca-Cola has paid a dividend, increasing each year for 49 years. Stock is available from a direct purchase program, through Computershare Trust Company, but unlike many programs, has investment fees.
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". This organization was set up to oppose a citizen's initiative, known as Proposition 37, demanding mandatory labeling of foods containing genetically modified ingredients.
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 the local Coca-Cola franchise. Coca-Cola bottlers, who hold territorially 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. Outside the United States, the bottlers also control the fountain business.
Since the early 1980s, the Company has actively encouraged the consolidation of bottlers with the Company often owning a share of these "anchor bottlers".
The Company's largest bottlers outside North America are:
- Coca-Cola Amatil, based in Australia (Australia, New Zealand, Indonesia, South Pacific nations) (Company owns share)
- Coca-Cola European Partners PLC, based in the United Kingdom (western Europe) (Company owns share)
- Coca-Cola Bottlers Philippines, Inc., based in the Philippines, a joint venture between the Company and Coca-Cola FEMSA
- Coca-Cola FEMSA, based in Mexico (parts of Mexico and Latin America) (Company owns share)
- Arca Continental, also based in Mexico (parts of Mexico and Latin America) (independent)
- Embotelladora Andina S.A, based in Chile (southern South America) (independent)
- Coca-Cola Korea, based in South Korea (independent)
- Coca-Cola HBC AG, originally based in Greece but now located in Switzerland (Greece, Eastern Europe, Russia, and Nigeria) (Company owns share)
- Coca-Cola Icecek, based in Turkey (Turkey, southwest Asia, Arabia) (Company owns share)
- Swire Group, based in Hong Kong (China, Taiwan, Hong Kong) (independent)
- Kirin Company, based in Japan (independent)
In the United States, 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 company directly owns 100% of Coca-Cola Refreshments, the anchor bottler of Coca-Cola products in North America, representing about 90% of Canada and 80% of the United States.
Other major bottlers in the United States are:
- Coca-Cola Bottling Co. Consolidated, based in Charlotte, North Carolina (company owns share)
- Coca-Cola Bottling Company of Northern New England based in Bedford, New Hampshire and owned by Kirin Company
- Coca-Cola Bottling Company United, based in Birmingham, Alabama (independent)
- Swire Coca-Cola USA, based in Salt Lake City, Utah and owned by Swire Group
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.
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.
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.
Vitamin Water lawsuit
In January 2009, the US consumer group the Center for Science in the Public Interest filed a class-action lawsuit against Coca-Cola. 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."
Products and brands
The Coca-Cola Company offers more than 350 brands in over 200 countries, aside from its namesake Coca-Cola beverage.
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.
Other soft drinks
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. 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.
Coca-Cola South Africa also released Valpre Bottled "still" and "sparkling" water.
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.
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, 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.
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.
Coca-Cola is the best-selling soft drink in most countries, and was recognized as the number one global brand in 2010. 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. 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. 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. As such, The Coca-Cola Company's best selling brand there is not Coca-Cola, but Georgia.
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.
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) for US$2.4bn (HK$12.20 per share). 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.
In October 2009, Coca-Cola revealed its new 90-calorie mini can that holds 7.5 fluid ounces. The first shipments are expected to reach the New York City and Washington D.C. markets in December 2009 and nationwide by March 2010.[dated info]
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.
World of Coca-Cola
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
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.
Coca-Cola's advertising expenses accounted for US$3.256 billion in 2011.
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.
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).
- Stepan Company - produces coca leaf extract
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- Decades of Great Performance From 9 Dow Stocks
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|Wikimedia Commons has media related to The Coca-Cola Company.|
- Official website
- Coca-Cola Company SEC Filings
- The Coca-Cola Company companies grouped at OpenCorporates