A comprehensive background of Coca-Cola containing its History and Origins, Early Evolution, Modern Business, Global Expansion, Company Structure, Recent Efforts and Company DNA. As one of the chapters of the book FMCG: The Power of Fast-Moving Consumer Goods by authors Greg Thain and John Bradley. For more details on their success story and that of other leading FMCG companies, check www.fmcgbook.com or Amazon http://amzn.to/1jRyd20.

2. History & Origin . . . . . . . . . . . . . . . . . . . 3
Early Evolution . . . . . . . . . . . . . . . . . . . 5
Modern Business . . . . . . . . . . . . . . . . . 11
Global Expansion . . . . . . . . . . . . . . . . 17
Company Structure . . . . . . . . . . . . . . 18
Recent Developments . . . . . . . . . . . . 19
Company DNA . . . . . . . . . . . . . . . . . . 25
Summary . . . . . . . . . . . . . . . . . . . . . . . 26
Social Media Accounts . . . . . . . . . . . 27
2

3.  By 1886, druggist and part-owner of nine different pharmaceutical firms,
John Styth Pemberton failed repeatedly in his quest to develop a patent
medicine
 One attempt was to concoct a non-alcoholic version of the best-selling
French Wine of Coca
 Of which alcohol and cocaine were the main ingredients
 Pemberton dropped the mood-depressing alcohol and replaced it with an
extract of African kola nut
 Pemberton, partner Frank M. Robinson and drug store owner Dr Joseph
Jacobs tasted the first-ever glasses on May 8, 1886
 The taste test was a success. And the name?
 Robinson called the new beverage Coca-Cola
 It sold moderately well in drugstores and soda fountains of Atlanta
3

4. 4
 Pemberton decided to sell two thirds of his share to Robinson
 For $283.24
 Then came Atlanta drug store owner and patent medicine manufacturer Asa
Griggs Candler
 Who became the new driving force of the partnership
 Who knew that the patent medicine days were over
 He bought Pemberton’s remaining stake for $550
 Dropped the drink’s medicinal claims and rebranded Coca-Cola as a simple
but highly refreshing drink
 It’s an insight that remains alive and well right up to the present day

5.  For Coca-Cola, Candler’s sales drive was two-pronged:
 Make it available to as many customers as possible
 Make it available where customers bought its competitors
 He hired cotton buyers as new additions to the sales force
 And sent them everywhere – they knew the country
 And despite press campaigns against the evils of cocaine, by1891 syrup sales
had rocketed to nearly 20,000 gallons
 And doubled a year later
 By 1902, Atlanta’s Coke was selling in far away New England
 As a first step in regionalised syrup production, Chicago got its own syrup
factory
 Within 10 years, supported by a 25% turnover ad spend, Coca-Cola was
America’s single most advertised and best-known product
 But with growth came distribution problems
5

6.  Sure you could sell the syrup. But you couldn’t sell the drink
 Because the bottles you put it in were prone to explode
 Entrepreneur Joseph Biedenharn stepped in, sending Candler the first ever
two dozen cases of a new-style bottled Coke
 Candler was hesitant but Biedenharn’s logic won the day:
 Taking the drink to the people was simpler than taking the people to the
drink
 By 1899, lawyers Benjamin Thomas and James Whitehead pushed Candler
on the potential of nationwide bottling
 And bought the US Coke bottling franchise . For one dollar
 By1917, Whitehead, short of capital, sold half of his share for $5,000
 The sale literally created whole dynasties of bottling families
 It divided the country by sub-licensing franchises to hundreds of people who
did have the capital
6

7.  And it granted exclusive territories in perpetuity
 Which made Coca-Cola omnipresent in the U.S. and created a bottling
network that persisted for most of company history
 The franchises both made a lot of people wealthy
 And gave Coca-Cola a breadth and depth of national distribution undreamed
of by other soft drink companies
 With the final removal of cocaine, Coke was poised to become what it still is: a
drink
 A fact which foreshadowed and inspired its advertising
 By 1908, Good to the Last Drop became Coca-Cola’s new slogan
 For 10 years, Coke sailed on smooth waters, but change was coming
 In 1919, the Candler family sold out to Atlanta financier Ernest Woodruff
 Who, new to the business and finding it problematic, soon passed the baton
to his son, Robert W. Woodruff
7

8.  Who set about fixing the problems he found
 He decentralized his sales team
 Creating a team of ‘retail sales experts’ as opposed to syrup pushers
 He turned his attention to the bottlers too
 Who must do better for Coke than they did for its competitors
 Woodruff provided the tools for the job
 Coke now had its first modern CEO
 1929: the year of that Coke icon, the top loading cooler
 Which meant cold Cokes for everyone, everywhere
 Bottle sales promptly exceeded fountain sales, as more retailers flocked back
to Coke
 Further expansion came in the form of a syrup concentrate
 Overseas bottlers could now add their own sugar, water and CO2
 By 1930, 60 bottlers in 28 countries serviced sales in 76 countries
8

9. 9
 Double the 1926 figures
 But there was a cloud on the horizon. And its name was: Pepsi
 As Pepsi appeared, one of Coke’s founding fathers disappeared: Archie Lee
 Lee had been the master-advertiser from the start
 But with his passing, the first half of the 1950s saw the company’s famous
advertising confidence begin to lose its way
 Advertising was handed over to the ad agency giant, McCann Erikson
 Whose executives convinced the company that they had to get into the
trenches and fight the upstart of Pepsi’s head on
 The single brand strategy, for example, was past its sell-by date
 It was time for Coca-Cola to make changes and to adapt to modern times: to
extend and to acquire

10. MINUTE MAID
 In 1960, Coca-Cola purchased Minute Maid Company, which launched it as a
true beverage company.
 Opening up a new market share for the company, with orange juice
marketed as an alternative drink to Coke
SPRITE
 In 1961, Sprite was launched to compete with Seven-Up
 The new brand accounted for full 1/6 of the total industry volume
TAB & FANTA
 In 1963, Tab was launched as a private label to compete within the diet cola
category
 Fanta was added, which further broadened the brand’s portfolio
11

11. DUNCAN FOODS
 In 1964, Duncan Foods was purchased and jumpstarted the expansion of the
company into the tea and coffee categories
FRESCA
 In 1966, Coca-Cola launched Fresca, a calorie-free, grapefruit-flavored soft
drink targeting the adult palate
NON-RETURNABLE BOTTLES/CANS
 As bottle returning gained popularity in the early 1960s, Coca-Cola joined
the bandwagon
 But by the end of the decade, 40% of the industry’s products came in one-way
containers
12

12. MODERN ADVERTISING
 Coca-Cola’s advertising had also found its feet again, echoing the early
confidence and concision of Archie Lee
 A new campaign direction prompted the biggest brand overhaul in history
(Project Arden)
SYRUP CONCENTRATE
 The increasing size and geographic reach of the major retailers, who
exceeded the bottler territories, posed difficulties for Coke
 After much bottler aggression, a deal was struck
 After a price hike of 24%, the bottlers could buy concentrate which would
thereafter go up in price in line with the Consumer Price Index, instead of
when Coke felt like it
 It was a move that would scar the company.
13

13. COLUMBIA PICTURES
 In 1982, Columbia Pictures Industries was purchased by newly appointed
CEO Goizueta
 But actors and actresses were a less tractable proposition than a bottle of
Coke
 Five years later, Sony bought 51%. By 1989, Coke was no longer in
entertainment
DIET COKE
 Launched on August 9,1982, Diet Coke was a sparkling success, the world’s
number 2 selling carbonated drink, next to Coca-Cola.
 Diet Coke expanded further with the birth of Caffeine-Free Diet Coke in 1983,
Cherry Coke in 1985 and Diet Cherry Coke in 1986
 New Coke was launched, benefitted Pepsi, and rapidly unlaunched.
14

14. COCA-COLA CLASSIC
 In April 23, 1985, Coca-Cola Classic was back on the market
COCA-COLA ENTERPRISES
 Goizueta regained control of the American bottling network
 He bought the Coca-Cola Bottling Company of New York for $215M
 Associated Coca-Cola Bottling Company for $417.5M
 And both JTL Corporation and the bottling by Beatrice Foods for $2.4B
 Creating Coca-Cola Enterprises (CCE) which later merged with Johnston
Coca-Cola Bottling Group in 1991
GLOBAL SPONSORSHIPS
 Global events such as Olympics and World Cup benefited the brand greatly
15

15. 1897
 First sales to Canada and Mexico
1906
 First international bottler established in Panama
1972
 Coca-Cola entered the Chinese market
1957
 Sierra Leone became the 100th country
 Coca-Cola now sold in 200 countries worldwide
 The international unit case volume exceeds the unit case volume in the
United States
17

16.  Early-mid 2000s: the company is split into bottling and non-bottling functions
via:
 Bottling Investments
 Corporate
 Corporate Group has 8 regions - Europe, Eurasia & Middle East, North
America, Asia, Latin America and Africa
 In 2004, regional division was as follows:
 Europe, Eurasia & Middle East – 33% of sales and selling 129 brands
 North America – 30% of sales and selling 93 brands
 Asia – 21% of sales and selling 184 brands
 Latin America – 10% of sales and selling 105 brands
 Africa – 5% of sales and selling 86 brands
 In 2010, Coca-Cola shifted to a 3-division structure: Coca-Cola International,
Coca-Cola America and Bottling Investments Group
18

17. 2004
 Newly appointed CEO, E. Nevile Isdell, brings in a ‘course correction’
 Diet Coke with Lime, Coca-Cola C2, Sprite Icy Mint, Fanta Free, Fanta Naranja
Chamoy and new Minute Maid lines all appear
2005
 New regional entities formed with most reporting to the Coca-Cola
International Division
 The Coca-Cola Company was now Number One in juice, Number Two in
sports drinks and Number Three in bottled water
 The Coke Side Of Life launched in a new digital platform
 Partnerships made with the International Olympic Committee and FIFA
19

18. 2006
 Unit volume increases by 4%
 367 additions added to the global range
 Coca-Cola Zero also becomes available to 19 key markets
2007
 The Three Cola Strategy - a focus driving on Coca-Cola, Diet Coke and Coke
Zero - pays dividends with an increase of 4% in case volume
 Coke Zero becomes more successful, available to 55 countries
 450 more lines added to beverage portfolio, including Glacéau
 On the bottling investments side, the newly owned Philippines set-up
stabilizes the business
20

19.  Bottlers in the German market combined into one unit to ensure greater
consistency of approach
 The company begins to take environmental concerns more seriously with its
production of the world’s largest PET bottle recycling plant
 Muhtar Kent becomes CEO
2008
 Despite the global economic problems in the second half of 2008, an extra
billion cases are sold
 Beverages double sales to 22% within 8 years and deliver nearly 60% of
company growth
 Glacéau increases Northern American case volume by double-digits,
launching in 5 new markets: Australia, Canada, Great Britain, Mexico and New
Zealand
21

20.  Coke Zero grows with 35% share, hitting 52 new markets
 The brand acquires the successful sponsorship of the Beijing Olympics
 Coca-Cola now its own second-largest bottler behind CCE
2009
 With over 3,300 products and counting, the brand is the latest to join the
$1billion club
 The brand grows double digits in India, Pakistan and Nigeria, three of the top
eight most populated countries on earth
 Sparkling beverages increases by only 1%, although Coke up 2%, Coke Zero
up 9%, launched in another 26 countries and Sprite up 6%
 Beverages prosper, with water up by 7%, teas 14%, and energy drinks 35%
22

21. 2010
 The company gains control of its North America bottling route to market, at
huge cost, after the sale to CCE of Norwegian and Swedish bottlers
 CEE North American bottling operation becomes an order of magnitude
larger, encompassing 75% of US bottler volume and almost 100% of
Canada’s
 The company grows case volume by 5%, adding another billion cases of
shipped product, now up to 25.5 billion cases, and nearly another $5 billion
in top line sales
 The rising star of the company is Minute Maid Pulpy, the biggest driver of a
21% increase in still sales in Eurasia & Africa
23

22. 2011
 After a full year of the One Coke model in North America, 4% growth is
reported
 Globally, Coca-Cola grows by 3% with Fanta
 Sprite does even better at +5%
 Another 500 products join the price list, now over 3,500 lines strong, a three-fold
increase compared to the previous decade
 A15th brand joins the roster of $1B brands: the juice drink Del Valle
 On the sustainability front, the new PlantBottle, made partially from plants, is
licensed for use by Heinz on their iconic ketchup brand
 And also helps Dasani return to significant growth
24

23. BRAND BUILDING
 From iconic advertising to the most liked page on Facebook via the most
effective global events sponsorships and mastery of the science of impulse
purchasing, Coke continues to set standards of marketing excellence across
the brand management spectrum
LOCAL FOCUS
 Given the economics of bottling and canning - it’s expensive to ship
something that is 99% water over long distances - the company always had
to have a local focus on the operations side
OPTIMISM
 97% of beverages consumed in the world aren’t provided by Coca-Cola. This
continuously feeds Coke’s unquenchable optimism for what the future holds
25

24.  The Coca-Cola Company is one of the most written-about and best
understood packaged goods companies in the world
 The mushrooming of the brand portfolio has not led Coke astray or
compromised the progress on the Coca-Cola brand itself; Coca-Cola Zero
has been one of the brand success stories of the 21st-century
 This is now a very different company from the one that thought the market
for carbonated beverages had maxed out and they should get into the
movie business
 Or the one that believed the Pepsi Challenge meant they had to launch New
Coke
 It is a company that has manoeuvred itself into a very strong position to
capture future growth, particularly in emerging markets, while still
continuing to build its core
 Given the scale of opportunity in emerging markets, Coke is now more
dependent on the performance of the US market than it has been for
decades
26

25. Website:
LinkedIn:
Facebook:
Twitter:
Instagram:
Youtube:
Google+:
Tumblr:
Pinterest:
Flickr:
27
www.coca-colacompany.com
www.linkedin.com/company/the-coca-cola-company
www.facebook.com/TheCocaColaCo
www.twitter.com/CokeCCE
www.instagram.com/cocacola
www.youtube.com/user/cocacola
plus.google.com/+TheCoca-ColaCompany/posts
www.coca-cola.tumblr.com/
www.pinterest.com/cocacola/
www.flickr.com/photos/coca-cola/