SWOT of Coca Cola
SWOT of Coca Cola
SWOT of Coca Cola
Originally intended as a patent medicine, it was invented in the late 19th century by John Stith
Pemberton and was bought out by businessman Asa Griggs Candler, whose marketing tactics led
Coca-Cola to its dominance of the world soft-drink market throughout the 20th century. The drink's
name refers to two of its original ingredients: coca leaves, and kola nuts (a source of caffeine). The
current formula of Coca-Cola remains a trade secret, although a variety of reported recipes and
experimental recreations have been published.
The Coca-Cola Company produces concentrate, which is then sold to licensed Coca-Cola bottlers
throughout the world. The bottlers, who hold exclusive territory contracts with the company, produce
the finished product in cans and bottles from the concentrate, in combination with filtered water and
sweeteners. A typical 12-US-fluid-ounce (350 ml) can contains 38 grams (1.3 oz) of sugar (usually in
the form of high fructose corn syrup). The bottlers then sell, distribute, and merchandise Coca-Cola
to retail stores, restaurants, and vending machines throughout the world. The Coca-Cola Company
also sells concentrate for soda fountains of major restaurants and foodservice distributors.
Coca-Cola ranked No. 87 in the 2018 Fortune 500list of the largest United States corporations by
total revenue.[4]
History
19th-century historical origins
Believed to be the first coupon ever, this ticket for a free glass of Coca-Cola was first distributed in 1888 to help
promote the drink. By 1913, the company had redeemed 8.5 million tickets.[5]
This refurbished Coca-Cola advertisement from 1943 is still displayed in Minden, Louisiana.
Early Coca-Cola vending machine at Biedenharn Museum and Gardens in Monroe, Louisiana
Origins of bottling
The first bottling of Coca-Cola occurred in Vicksburg, Mississippi, at the Biedenharn Candy
Company on March 12, 1894.[31] The proprietor of the bottling works was Joseph A.
Biedenharn.[32] The original bottles were Hutchinson bottles, very different from the much later
hobble-skirt design of 1915 now so familiar.
It was then a few years later that two entrepreneurs from Chattanooga, Tennessee,
namely Benjamin F. Thomas and Joseph B. Whitehead, proposed the idea of bottling and were so
persuasive that Candler signed a contract giving them control of the procedure for only one
dollar.[33] Candler never collected his dollar, but in 1899, Chattanooga became the site of the first
Coca-Cola bottling company. Candler remained very content just selling his company's syrup.[34] The
loosely termed contract proved to be problematic for The Coca-Cola Company for decades to come.
Legal matters were not helped by the decision of the bottlers to subcontract to other companies,
effectively becoming parent bottlers.[35] This contract specified that bottles would be sold at 5¢ each
and had no fixed duration, leading to the fixed price of Coca-Cola from 1886 to 1959.
20th century
The first outdoor wall advertisement that promoted the Coca-Cola drink was painted in 1894
in Cartersville, Georgia.[36] Cola syrup was sold as an over-the-counter dietary supplement for upset
stomach.[37][38] By the time of its 50th anniversary, the soft drink had reached the status of a national
icon in the USA. In 1935, it was certified kosher by Atlanta Rabbi Tobias Geffen, after the company
made minor changes in the sourcing of some ingredients.[39]
Original framed Coca-Cola artist's drawn graphic presented by The Coca-Cola Company on July 12, 1944 to
Charles Howard Candler on the occasion of Coca-Cola's "1 Billionth Gallon of Coca-Cola Syrup."
Claimed to be the first installation anywhere of the 1948 model "Boat Motor" styled Coca-Cola soda dispenser,
Fleeman's Pharmacy, Atlanta, Georgia. The "Boat Motor" soda dispenser was introduced in the late 1930s and
manufactured until the late 1950s. Photograph circa 1948.
The longest running commercial Coca-Cola soda fountain anywhere was Atlanta's Fleeman's
Pharmacy, which first opened its doors in 1914.[40] Jack Fleeman took over the pharmacy from his
father and ran it until 1995; closing it after 81 years.[41] On July 12, 1944, the one-billionth gallon of
Coca-Cola syrup was manufactured by The Coca-Cola Company. Cans of Coke first appeared in
1955.[42]
New Coke
Main article: New Coke
On April 23, 1985, Coca-Cola, amid much publicity, attempted to change the formula of the drink
with "New Coke". Follow-up taste tests revealed most consumers preferred the taste of New Coke to
both Coke and Pepsi[43] but Coca-Cola management was unprepared for the public's nostalgia for the
old drink, leading to a backlash. The company gave in to protests and returned to the old formula
under the name Coca-Cola Classic, on July 10, 1985.
21st century
On July 5, 2005, it was revealed that Coca-Cola would resume operations in Iraq for the first time
since the Arab League boycotted the company in 1968.[44]
In April 2007, in Canada, the name "Coca-Cola Classic" was changed back to "Coca-Cola". The
word "Classic" was removed because "New Coke" was no longer in production, eliminating the need
to differentiate between the two.[45] The formula remained unchanged. In January 2009, Coca-Cola
stopped printing the word "Classic" on the labels of 16-US-fluid-ounce (470 ml) bottles sold in parts
of the southeastern United States.[46] The change is part of a larger strategy to rejuvenate the
product's image.[46] The word "Classic" was removed from all Coca-Cola products by 2011.
In November 2009, due to a dispute over wholesale prices of Coca-Cola products, Costco stopped
restocking its shelves with Coke and Diet Coke for two months; a separate pouring rights deal in
2013 saw Coke products removed from Costco food courts in favor of Pepsi.[47] Some Costco
locations (such as the ones in Tucson, Arizona) additionally sell imported Coca-Cola from
Mexico with cane sugar instead of corn syrup from separate distributors.[48] Coca-Cola introduced the
7.5-ounce mini-can in 2009, and on September 22, 2011, the company announced price reductions,
asking retailers to sell eight-packs for $2.99. That same day, Coca-Cola announced the 12.5-ounce
bottle, to sell for 89 cents. A 16-ounce bottle has sold well at 99 cents since being re-introduced, but
the price was going up to $1.19.[citation needed]
In 2012, Coca-Cola resumed business in Myanmar after 60 years of absence due to U.S.-imposed
investment sanctions against the country.[49][50] Coca-Cola's bottling plant will be located
in Yangon and is part of the company's five-year plan and $200 million investment in
Myanmar.[51] Coca-Cola with its partners is to invest US$5 billion in its operations in India by
2020.[52] In 2013, it was announced that Coca-Cola Life would be introduced in Argentina and other
parts of the world that would contain stevia and sugar.[53] However, the drink was discontinued in
Britain on June 2017.[54]
Production
Ingredients
Carbonated water
Sugar (sucrose or high-fructose corn syrup (HFCS) depending on country of origin)
Caffeine
Phosphoric acid
Caramel color (E150d)
Natural flavorings[55]
A typical can of Coca-Cola (12 fl ounces/355 ml) contains 38 grams of sugar (usually in the form of
HFCS),[56] 50 mg of sodium, 0 grams fat, 0 grams potassium, and 140 calories.[57] On May 5, 2014,
Coca-Cola said it is working to remove a controversial ingredient, brominated vegetable oil, from all
of its drinks.[58]
When launched, Coca-Cola's two key ingredients were cocaine and caffeine. The cocaine was
derived from the coca leaf and the caffeine from kola nut (also spelled "cola nut" at the time), leading
to the name Coca-Cola.[66][67]
Coca – cocaine
Although Coca-Cola denies usage of cocaine,[68] Pemberton called for five ounces of coca leaf per
gallon of syrup (approximately 37 g/L), a significant dose; in 1891, Candler claimed his formula
(altered extensively from Pemberton's original) contained only a tenth of this amount. Coca-Cola
once contained an estimated nine milligrams of cocaine per glass. (For comparison, a typical dose
or "line" of cocaine is 50–75 mg.[69]) In 1903, it was removed.[70]
After 1904, instead of using fresh leaves, Coca-Cola started using "spent" leaves – the leftovers of
the cocaine-extraction process with trace levels of cocaine.[71] Since then, Coca-Cola uses a cocaine-
free coca leaf extract prepared at a Stepan Company plant in Maywood, New Jersey.[72]
In the United States, the Stepan Company is the only manufacturing plant authorized by the Federal
Government to import and process the coca plant,[72] which it obtains mainly from Peru and, to a
lesser extent, Bolivia. Besides producing the coca flavoring agent for Coca-Cola, the Stepan
Company extracts cocaine from the coca leaves, which it sells to Mallinckrodt, a St. Louis,
Missouri, pharmaceutical manufacturer that is the only company in the United States licensed to
purify cocaine for medicinal use.[73]
Long after the syrup had ceased to contain any significant amount of cocaine, in the southeastern
U.S., "dope" remained a common colloquialism for Coca-Cola, and "dope-wagons" were trucks that
transported it.[74] The traditional shape of the bottle resembles the seed-pod of the coca bush,
memorializing the cocaine recipe.[75]
Kola nuts – caffeine
Kola nuts act as a flavoring and the source of caffeine in Coca-Cola. In Britain, for example, the
ingredient label states "Flavourings (Including Caffeine)."[76] Kola nuts contain about 2.0 to 3.5%
caffeine, are of bitter flavor, and are commonly used in cola soft drinks. In 1911, the U.S.
government initiated United States v. Forty Barrels and Twenty Kegs of Coca-Cola, hoping to force
Coca-Cola to remove caffeine from its formula. The case was decided in favor of Coca-Cola.
Subsequently, in 1912, the U.S. Pure Food and Drug Act was amended, adding caffeine to the list of
"habit-forming" and "deleterious" substances which must be listed on a product's label.
Coca-Cola contains 34 mg of caffeine per 12 fluid ounces (9.8 mg per 100 ml).[77]
Geographic spread
Since it announced its intention to begin distribution in Myanmar in June 2012, Coca-Cola has been
officially available in every country in the world except Cuba and North Korea.[81]However, it is
reported to be available in both countries as a grey import.[82][83]
Coca-Cola has been a point of legal discussion in the Middle East. In the early 20th century,
a fatwa was created in Egypt to discuss the question of "whether Muslims were permitted to drink
Coca-Cola and Pepsi cola."[84] The fatwa states: "According to the Muslim Hanefite, Shafi'ite, etc., the
rule in Islamic law of forbidding or allowing foods and beverages is based on the presumption that
such things are permitted unless it can be shown that they are forbidden on the basis of the
Qur'an."[84] The Muslim jurists stated that, unless the Qu'ran specifically prohibits the consumption of
a particular product, it is permissible to consume. Another clause was discussed, whereby the same
rules apply if a person is unaware of the condition or ingredients of the item in question.
Brand portfolio
Partial U.S. line-up of Coca-Cola and Coca-Cola Zero Sugar varieties (as of 2019)
This is a list of variants of Coca-Cola introduced around the world. In addition to the caffeine-free
version of the original, additional fruit flavors have been included over the years. Not included here
are versions of Diet Coke and Coca-Cola Zero Sugar; variant versions of those no-calorie colas can
be found at their respective articles.
The Coca-Cola bottle, called the "contour bottle" within the company, was created by bottle
designer Earl R. Dean and Coca-Cola's general counsel, Harold Hirsch. In 1915, The Coca-Cola
Company was represented by their general counsel to launch a competition among its bottle
suppliers as well as any competition entrants to create a new bottle for their beverage that would
distinguish it from other beverage bottles, "a bottle which a person could recognize even if they felt it
in the dark, and so shaped that, even if broken, a person could tell at a glance what it was."[90][91][92][93]
Chapman J. Root, president of the Root Glass Company of Terre Haute, Indiana, turned the project
over to members of his supervisory staff, including company auditor T. Clyde Edwards, plant
superintendent Alexander Samuelsson, and Earl R. Dean, bottle designer and supervisor of the
bottle molding room. Root and his subordinates decided to base the bottle's design on one of the
soda's two ingredients, the coca leaf or the kola nut, but were unaware of what either ingredient
looked like. Dean and Edwards went to the Emeline Fairbanks Memorial Library and were unable to
find any information about coca or kola. Instead, Dean was inspired by a picture of the gourd-
shaped cocoa pod in the Encyclopædia Britannica. Dean made a rough sketch of the pod and
returned to the plant to show Root. He explained to Root how he could transform the shape of the
pod into a bottle. Root gave Dean his approval.[90]
Faced with the upcoming scheduled maintenance of the mold-making machinery, over the next 24
hours Dean sketched out a concept drawing which was approved by Root the next morning. Dean
then proceeded to create a bottle mold and produced a small number of bottles before the glass-
molding machinery was turned off.[94]
Chapman Root approved the prototype bottle and a design patent was issued on the bottle in
November 1915. The prototype never made it to production since its middle diameter was larger
than its base, making it unstable on conveyor belts. Dean resolved this issue by decreasing the
bottle's middle diameter. During the 1916 bottler's convention, Dean's contour bottle was chosen
over other entries and was on the market the same year. By 1920, the contour bottle became the
standard for The Coca-Cola Company. A revised version was also patented in 1923. Because the
Patent Office releases the Patent Gazette on Tuesday, the bottle was patented on December 25,
1923, and was nicknamed the "Christmas bottle." Today, the contour Coca-Cola bottle is one of the
most recognized packages on the planet..."even in the dark!".[35]
As a reward for his efforts, Dean was offered a choice between a $500 bonus or a lifetime job at the
Root Glass Company. He chose the lifetime job and kept it until the Owens-Illinois Glass
Company bought out the Root Glass Company in the mid-1930s. Dean went on to work in other
Midwestern glass factories.[95]
One alternative depiction has Raymond Loewy as the inventor of the unique design, but, while
Loewy did serve as a designer of Coke cans and bottles in later years, he was in the French
Army the year the bottle was invented and did not emigrate to the United States until 1919. Others
have attributed inspiration for the design not to the cocoa pod, but to a Victorian hooped dress.[96]
In 1944, Associate Justice Roger J. Traynor of the Supreme Court of California took advantage of a
case involving a waitress injured by an exploding Coca-Cola bottle to articulate the doctrine of strict
liability for defective products. Traynor's concurring opinion in Escola v. Coca-Cola Bottling Co. is
widely recognized as a landmark case in U.S. law today.[97]
Types
Earl R. Dean's original 1915 concept drawing of the contour Coca-Cola bottle
The prototype never made it to production since its middle diameter was larger than its base, making it
unstable on conveyor belts.