Coca-Cola

From Wikipedia, the free encyclopedia

This article is about the beverage. For its manufacturer, see The Coca-Cola Company.
"Coca-Cola Classic" redirects here. For the NCAA football game, see Coca-Cola Classic
(college football).
Coca-Cola

Type Cola
Manufacturer The Coca-Cola Company
Country of origin United States
Introduced 1886
Color Caramel E-150d
Flavor
Cola, Cola Cherry, Cola Vanilla,
Cola Green Tea, Cola Lemon,
Cola Lemon Lime, Cola Lime,
Cola Orange and Cola Raspberry.
Variants See Brand portfolio section below
Related products
Pepsi
RC Cola
Cola Turka
Kola Real
Inca Kola
Zam Zam Cola
Mecca-Cola
Virgin Cola
Parsi Cola
Qibla Cola
Evoca Cola
Corsica Cola
Breizh Cola
Afri Cola
Website www.coca-cola.com
Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines
throughout the world.
[1]
It is produced by The Coca-Cola Company of Atlanta, Georgia, and
is often referred to simply as Coke (a registered trademark of The Coca-Cola Company in the
United States since March 27, 1944). Originally intended as a patent medicine when it was
invented in the late 19th century by John Pemberton, Coca-Cola was bought out by
businessman Asa Griggs Candler, whose marketing tactics led Coke to its dominance of the
world soft-drink market throughout the 20th century.
The company produces concentrate, which is then sold to licensed Coca-Cola bottlers
throughout the world. The bottlers, who hold territorially exclusive contracts with the
company, produce finished product in cans and bottles from the concentrate in combination
with filtered water and sweeteners. The bottlers then sell, distribute and merchandise Coca-
Cola to retail stores and vending machines. The Coca-Cola Company also sells concentrate
for soda fountains to major restaurants and food service distributors.
The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke
brand name. The most common of these is Diet Coke, with others including Caffeine-Free
Coca-Cola, Diet Coke Caffeine-Free, Coca-Cola Cherry, Coca-Cola Zero, Coca-Cola Vanilla,
and special versions with lemon, lime or coffee. In 2013, Coke products could be found in
over 200 countries worldwide, with consumers downing more than 1.8 billion company
beverage servings each day.
[2]

Based on Interbrand's best global brand 2011, Coca-Cola was the world's most valuable
brand.
[3]

The Coca-Cola Company
In 1892, Candler set out to incorporate a second company; "The Coca-Cola Company" (the
current corporation). When Candler had the earliest records of the "Coca-Cola Company"
burned in 1910, the action was claimed to have been made during a move to new corporation
offices around this time.
[21]

After Candler had gained a better foothold of Coca-Cola in April 1888, he nevertheless was
forced to sell the beverage he produced with the recipe he had under the names "Yum Yum"
and "Koke". This was while Charley Pemberton was selling the elixir, although a cruder
mixture, under the name "Coca-Cola", all with his father's blessing. After both names failed
to catch on for Candler, by the summer of 1888, the Atlanta pharmacist was quite anxious to
establish a firmer legal claim to Coca-Cola, and hoped he could force his two competitors,
Walker and Dozier, completely out of the business, as well.
[22]

When Dr. John Stith Pemberton suddenly died on August 16, 1888, Asa G. Candler now
sought to move swiftly forward to attain his vision of taking full control of the whole Coca-
Cola operation.
Charley Pemberton, an alcoholic, was the one obstacle who unnerved Asa Candler more than
anyone else. Candler is said to have quickly maneuvered to purchase the exclusive rights to
the name "Coca-Cola" from Pemberton's son Charley right after Dr. Pemberton's death. One
of several stories was that Candler bought the title to the name from Charley's mother for
$300; approaching her at Dr. Pemberton's funeral. Eventually, Charley Pemberton was found
on June 23, 1894, unconscious, with a stick of opium by his side. Ten days later, Charley died
at Atlanta's Grady Hospital at the age of 40.
[23]

In Charles Howard Candler's 1950 book about his father, he stated: "On August 30th {1888},
he {Asa Candler} became sole proprietor of Coca-Cola, a fact which was stated on
letterheads, invoice blanks and advertising copy."
[24]

With this action on August 30, 1888, Candler's sole control became technically all true.
Candler had negotiated with Margaret Dozier and her brother Woolfolk Walker a full


payment amounting to $1,000, which all agreed Candler could pay off with a series of notes
over a specified time span. By May 1, 1889, Candler was now claiming full ownership of the
Coca-Cola beverage, with a total investment outlay by Candler for the drink enterprise over
the years amounting to $2,300.
[25]

In 1914, Margaret Dozier, as co-owner of the original Coca-Cola Company in 1888, came
forward to claim that her signature on the 1888 Coca-Cola Company bill of sale had been
forged. Subsequent analysis of certain similar transfer documents had also indicated John
Pemberton's signature was most likely a forgery, as well, which some accounts claim was
precipitated by his son Charley.
[26]

Formula of natural flavorings
Main article: Coca-Cola formula
The exact formula of Coca-Cola's natural flavorings (but not its other ingredients, which are
listed on the side of the bottle or can) is a trade secret. The original copy of the formula was
held in SunTrust Bank's main vault in Atlanta for 86 years. Its predecessor, the Trust
Company, was the underwriter for the Coca-Cola Company's initial public offering in 1919.
On December 8, 2011, the original secret formula was moved from the vault at SunTrust
Banks to a new vault containing the formula which will be on display for visitors to its World
of Coca-Cola museum in downtown Atlanta.
[49]

A popular myth states that only two executives have access to the formula, with each
executive having only half the formula.
[50]
The truth is that while Coca-Cola does have a rule
restricting access to only two executives, each knows the entire formula and others, in
addition to the prescribed duo, have known the formulation process.
[51]

On February 11, 2011, Ira Glass revealed on his PRI radio show, This American Life, that the
secret formula to Coca-Cola had been uncovered in a 1979 newspaper. The formula found
basically matched the formula found in Pemberton's diary.
[52][53][54][55]











Brand portfolio
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; variant versions of
those no-calorie colas can be found at their respective articles.
Name Launched Discontinued Notes
Coca-Cola 1886

The original version of Coca-Cola.
Caffeine-Free
Coca-Cola
1983

The caffeine free version of Coca-Cola.
Coca-Cola
Cherry
1985

Was available in Canada starting in 1996. Called "Cherry
Coca-Cola (Cherry Coke)" in North America until 2006.
New
Coke/"Coca-
Cola II"
1985 2002 Was still available in Yap and American Samoa
[citation needed]

Coca-Cola
with Lemon
2001 2005
Available in:
Australia, American Samoa, Austria, Belgium, Brazil,
China, Denmark, Federation of Bosnia and
Herzegovina, Finland, France, Germany, Hong Kong,
Iceland, Korea, Luxembourg, Macau, Malaysia,
Mongolia, Netherlands, New Caledonia, New Zealand,
Runion, Singapore, Spain, Switzerland, Taiwan,
Tunisia, United Kingdom, United States, and West
Bank-Gaza
Coca-Cola
Vanilla
2002;
2007;
2013
2005;
Available in: Austria, Australia, China, Czech Republic,
Finland, Germany, Hong Kong, New Zealand, Malaysia,
Slovakia, South-Africa, Sweden, United Kingdom and
United States. It was reintroduced in June 2007 by popular
demand.
Coca-Cola
with Lime
2005

Available in Belgium, Netherlands, Singapore, Canada, the
United Kingdom, and the United States.
Coca-Cola
Raspberry
June 2005 End of 2005
Was only available in New Zealand. Currently available in
the United States in Coca-Cola Freestyle fountain since
2009.
Coca-Cola
Black Cherry
Vanilla
2006
Middle of
2007
Was replaced by Vanilla Coke in June 2007
Coca-Cola Blk 2006
Beginning of
2008
Only available in the United States, France, Canada, Czech
Republic, Bosnia and Herzegovina, Bulgaria and Lithuania
Coca-Cola
Citra
2006

Only available in Bosnia and Herzegovina, New Zealand
and Japan.
Coca-Cola
Orange
2007

Was available in the United Kingdom and Gibraltar for a
limited time. In Germany, Austria and Switzerland it's sold
under the label Mezzo Mix. Currently available in Coca-
Cola Freestyle fountain outlets in the United States since
2009.
Coca-Cola Life 2013

Only available in Argentina.
Health effects
Studies indicate "soda and sweetened drinks are the main source of calories in [the] American
diet",
[125]
so most nutritionists advise that Coca-Cola and other soft drinks can be harmful if
consumed excessively, particularly to young children whose soft drink consumption
competes with, rather than complements, a balanced diet. Studies have shown that regular
soft drink users have a lower intake of calcium, magnesium, ascorbic acid, riboflavin, and
vitamin A.
[126]
The drink has also aroused criticism for its use of caffeine, which can cause
physical dependence (caffeine addiction).
[127]
A link has been shown between long-term
regular cola intake and osteoporosis in older women (but not men).
[128]
This was thought to
be due to the presence of phosphoric acid, and the risk was found to be same for caffeinated
and noncaffeinated colas, as well as the same for diet and sugared colas.
A common criticism of Coke based on its allegedly toxic acidity levels has been found to be
baseless by researchers; lawsuits based on these notions have been dismissed by several
American courts for this reason. Although numerous court cases have been filed against The
Coca-Cola Company since the 1920s, alleging that the acidity of the drink is dangerous, no
evidence corroborating this claim has been found. Under normal conditions, scientific
evidence indicates Coca-Cola's acidity causes no immediate harm.
[129]

Since 1980 in the U.S., Coke has been made with high-fructose corn syrup (HFCS) as an
ingredient. Originally it was used in combination with more expensive cane-sugar, but by late
1984 the formulation was sweetened entirely with HFCS. Some nutritionists caution against
consumption of HFCS because it may aggravate obesity and type-2 diabetes more than cane
sugar.
[130]

In India, there is a controversy whether there are pesticides and other harmful chemicals in
bottled products, including Coca-Cola. In 2003 the Centre for Science and Environment
(CSE), a non-governmental organization in New Delhi, said aerated waters produced by soft
drinks manufacturers in India, including multinational giants PepsiCo and Coca-Cola,
contained toxins including lindane, DDT, malathion and chlorpyrifos pesticides that can
contribute to cancer and a breakdown of the immune system. CSE found that the Indian-
produced Pepsi's soft drink products had 36 times the level of pesticide residues permitted
under European Union regulations; Coca-Cola's soft drink was found to have 30 times the
permitted amount. CSE said it had tested the same products sold in the U.S. and found no
such residues.
[131]

After the pesticide allegations were made in 2003, Coca-Cola sales in India declined by 15
percent. In 2004 an Indian parliamentary committee backed up CSE's findings and a
government-appointed committee was tasked with developing the world's first pesticide
standards for soft drinks. The Coca-Cola Company has responded that its plants filter water
to remove potential contaminants and that its products are tested for pesticides and must meet
minimum health standards before they are distributed.
[132]
In the Indian state of Kerala sale
and production of Coca-Cola, along with other soft drinks, was initially banned after the
allegations, until the High Court in Kerala overturned ruled that only the federal government
can ban food products. Coca-Cola has also been accused of excessive water usage in
India.
[133]

The 2008 Ig Nobel Prize (a parody of the Nobel Prizes) in Chemistry was awarded to Sheree
Umpierre, Joseph Hill, and Deborah Anderson, for discovering that Coca-Cola is an effective
spermicide,
[134]
and to C.Y. Hong, C.C. Shieh, P. Wu, and B.N. Chiang for proving it is
not.
[135][136]


PepsiCo
PepsiCo Inc. is an American multinational food and beverage corporation headquartered in
Purchase, New York, United States, with interests in the manufacturing, marketing and
distribution of grain-based snack foods, beverages, and other products. PepsiCo was formed
in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since
expanded from its namesake product Pepsi to a broader range of food and beverage brands,
the largest of which includes an acquisition of Tropicana in 1998 and a merger with Quaker
Oats in 2001which added the Gatorade brand to its portfolio.
As of January 22, 2012 PepsiCo's product lines generated retail sales of more than $1 billion
each,
[8]
and the company's products were distributed across more than 200 countries, resulting
in annual net revenues of $43.3 billion. Based on net revenue, PepsiCo is the second largest
food and beverage business in the world. Within North America, PepsiCo is ranked (by net
revenue) as the largest food and beverage business.
Indra Krishnamurthy Nooyi has been the chief executive of PepsiCo since 2006, and the
company employed approximately 278,000 people worldwide as of 2012. The company's
beverage distribution and bottling is conducted by PepsiCo as well as by licensed bottlers in
certain regions. PepsiCo is a SIC 2080 (beverage) company.
Origins
The recipe for Pepsi (the soft drink), was first developed in the 1880s by a pharmacist and
industrialist from New Bern, North Carolina, named Caleb Bradham who called it "Pepsi-
Cola" in 1898. As the cola developed in popularity, he created the Pepsi-Cola Company in
1902 and registered a patent for his recipe in 1903.
[9]
The Pepsi-Cola Company was first
incorporated in the state of Delaware in 1919.
[10]
The company went bankrupt in 1931 and on
June 8 of that year, the trademark and syrup recipe were purchased by Charles Guth who
owned a syrup manufacturing business in Baltimore, Maryland. Guth was also the president
of Loft, Incorporated, a leading candy manufacturer, and he used the company's labs and
chemists to reformulate the syrup. He further contracted to stock the soda in Loft's large chain
of candy shops and restaurants, which were known for their soda fountains, used Loft
resources to promote Pepsi, and moved the soda company to a location close by Loft's own
facilities in New York City. In 1935, the shareholders of Loft sued Guth for his 91% stake of
Pepsi-Cola Company in the landmark Guth v. Loft Inc. Loft won the suit and on May 29,
1941 formally absorbed Pepsi into Loft, which was then re-branded as Pepsi-Cola Company
that same year. (Loft restaurants and candy stores were spun off at this time.) In the early
1960s, the company's product lines expanded with the creation of Diet Pepsi and purchase of
Mountain Dew.
[11]

In 1965, the Pepsi-Cola Company merged with Frito-Lay, Inc. to become PepsiCo, Inc., the
company it is known as at present. At the time of its foundation, PepsiCo was incorporated in
the state of Delaware and headquartered in Manhattan, New York. The company's
headquarters were relocated to its still-current location of Purchase, New York in 1970,
[12]

and in 1986 PepsiCo was reincorporated in the state of North Carolina.
[10]

PepsiCo was the first company to stamp expiration dates, starting in March 1994.
[citation needed]

Products and brands
Largest PepsiCo Brands (based on 2009 retail sales)
Brand

Pepsi

Mountain Dew

Lay's potato chips

Gatorade

Diet Pepsi

Tropicana beverages

7 Up (outside U.S.)

Doritos tortilla chips

Lipton teas (PepsiCo/Unilever partnership)

Quaker foods and snacks

Cheetos

Mirinda

Ruffles potato chips

Aquafina bottled water

Pepsi Max

Tostitos tortilla chips

Sierra Mist

Fritos corn chips

Walkers potato crisps

Source: 2009 Annual Report
[33]
$0 $5b $10b $15b $20b
PepsiCo's product mix as of 2012 (based on worldwide net revenue) consists of 63 percent
foods, and 37 percent beverages.
[31]
On a worldwide basis, the company's current products
lines include several hundred brands that in 2009 were estimated to have generated
approximately $108 billion in cumulative annual retail sales.
[33]

The primary identifier of a food and beverage industry main brand is annual sales over $1
billion. As of 2009, 21 PepsiCo brands met that mark: Pepsi, Mountain Dew, Lay's, Gatorade,
Tropicana, 7 Up, Doritos, Lipton Teas, Quaker Foods, Cheetos, Mirinda, Ruffles, Aquafina,
Pepsi Max, Tostitos, Sierra Mist, Fritos, and Walkers.
[33][34]

Areas of business
The structure of PepsiCo's global operations has shifted multiple times in its history as a
result of international expansion, and as of 2010 it is separated into four main divisions:
[35]

PepsiCo Americas Foods, PepsiCo Americas Beverages, PepsiCo Europe, and PepsiCo Asia,
Middle East and Africa. As of 2009, 71 percent of the company's net revenues came from
North and South America, 16 percent from Europe and 13 percent from Asia, the Middle East
and Africa.
[36]
Approximately 285,000 people are employed by PepsiCo worldwide as of
2010.
[37]

PepsiCo Asia, Middle East & Africa
The most recently created operating division of PepsiCo covers Asia, the Middle East and
Africa.
[32]
In addition to the production and sales of several worldwide Pepsi-Cola, Quaker
Foods and Frito-Lay beverage and food product lines (including Pepsi and Doritos), this
segment of PepsiCo's business markets regional brands such as Mirinda, Kurkure and Red
Rock Deli, among others.
[1]
While PepsiCo owns its own manufacturing and distribution
facilities in certain parts of these regions, more of this production is conducted via alternate
means such as licensing (which it does with Aquafina), contract manufacturing, joint ventures
and affiliate operations. PepsiCo's businesses in these regions, as of 2009, contributed 13
percent to the company's net revenue worldwide.
[33]
In August 2012, PepsiCo signed an
agreement with a local Myanmar distributor to sell its softdrinks after a 15-year break to re-
enter the country.
[

Headquarters
Main article: Donald M. Kendall Sculpture Gardens


PepsiCo headquarters
The PepsiCo headquarters are located in the neighborhood of Purchase, New York, in the
town of Harrison, New York. It was one of the last architectural works by Edward Durell
Stone. It consists of seven three-story buildings. Each building is connected to its neighbor
through a corner. The property includes the Donald M. Kendall Sculpture Gardens with 45
contemporary sculptures open to the public. Works include those of Alexander Calder, Henry
Moore, and Auguste Rodin. Westchester Magazine stated "The buildings square blocks rise
from the ground into low, inverted ziggurats, with each of the three floors having strips of
dark windows; patterned pre-cast concrete panels add texture to the exterior surfaces." In
2010 the magazine ranked the building as one of the ten most beautiful buildings in
Westchester County.
[54]

At one time PepsiCo had its headquarters in 500 Park Avenue in Midtown Manhattan, New
York City.
[55]
In 1956 PepsiCo paid $2 million for the original building.
[56]
PepsiCo built the
new 500 Park Avenue in 1960.
[57]
In 1966, Mayor of New York City John Lindsay started a
private campaign to convince PepsiCo to remain in New York City.
[58]
Six months later, the
company announced that it was moving to 112 acres (45 ha) of the Blind Brook Polo Club in
Westchester County.
[59]
After PepsiCo left the Manhattan building, it became known as the
Olivetti Building.
[57]

PepsiCo. to set up largest beverage plant in
India in Andhra

The first phase of the plant, with a capacity to handle 1.2 million litres per day, will be
completed by the third or fourth quarter of FY15 at an investment of Rs450 crore. Photo:
Priyanka Parashar/Mint


Hyderabad: Beverages and snack maker PepsiCo Inc. will set up its largest beverage manufacturing
plant in the country in Andhra Pradesh at an investment of Rs1,200 crore.
This is the first tranche of Rs33,000 crore investment that the company announced recently during
the visit of its chairperson and chief executive officer Indra Nooyi to India. The amount will be
deployed over the next six years.
The beverage plant will come up in Sri City, a special economic zone in Chittoor district, located on
the border of Andhra Pradesh and Tamil Nadu. It will provide direct and indirect employment to
8,000 people, PepsiCo said.
The Sri City plant will boost our production capacity and support the growing demand for PepsiCo
Indias beverage products in Andhra Pradesh and peninsular India, said Shiv Shivakumar, chairman
and chief executive officer of PepsiCo India Holdings Pvt. Ltd., the India unit of the worlds second
biggest beverage maker.
India is a high priority market for PepsiCo and we see tremendous opportunities to expand our food
and beverage business here in the coming years. The state of the art beverage facility is a key part of
our growth plans for the Indian market and we are delighted to locate it in Andhra Pradesh, an
investor friendly and progressive state with a receptive government, Shivakumar, who recently took
the top job at the company, said in a statement.
The Sri City plant will be completed in three phases, with the first phase taking off immediately.
Andhra Pradesh chief minister N. Kiran Kumar Reddy laid the ceremonial foundation stone for the
plant in Hyderabad on Saturday.
The first phase of the plant, with a capacity to handle 1.2 million litres per day, will be completed by
the third or fourth quarter of FY15 at an investment of Rs450 crore, Shivakumar said. PepsiCo will
invest Rs400 crore in the second phase commencing in 2015, and the remaining amount in the third
phase expected to begin in 2017.
Andhra Pradesh is a large beverage market with robust demand through the year, Shivakumar
said.
The Sri City facility will be PepsiCos second plant in Andhra Pradesh. Its beverage manufacturing
plant (with seven production lines) in Medak district caters to the Andhra Pradesh market and parts
of Karnataka.
The manufacturer of brands such as Pepsi, Mountain Dew, 7Up, Mirinda (aerated drinks), Aquafina
(bottled water), Tropicana (fruit juices), Gatorade (sports drink), Lays (snacks) and Quaker (breakfast
food), has 38 beverage bottling plants and three food plants in the country. PepsiCos top eight
brands generate a business of about Rs.1,000 crore each.
The Sri City facility will have eight production lines when completed and will manufacture PepsiCos
entire range of beverages carbonated soft drinks, fruit juice-based drinks and sports drinks, said
Kanish Malik, vice president of operations, PepsiCo India. The production lines at the facility will be
the fastest among PepsiCos 38 beverage bottling plants in India, Malik said. Executives said the
company will add productions lines during second and third phases according to market conditions.
The company claimed the facility would be its most water-efficient beverage plant in India. The plant
will source water from Telugu Ganga project, a water supply scheme implemented by the Andhra
Pradesh government to provide drinking water to Chennai city from the Krishna river.
PepsiCo India also announced its intention to make Andhra Pradesh a national hub for sourcing
mango pulp for its soft drinks. It will source mango pulp from 60,000 farmers of Chittoor, Nellore
and Prakasam districts of the state over the next six years.
I am happy that the company has also decided to considerably increase its mango sourcing from
Andhra Pradesh for its juice-based beverages, which will benefit thousands of farmers from the
state, chief minister Kiran Kumar Reddy said.


Environmental Challenges for the Food and
Beverage Industry
by Dana Krechowicz - August 27, 2009

A drought-affected rice field in India. Photo credit: IRRI Images/flickr
Climate change and water scarcity will have a big impact on the food and beverage industry
in Asia, due mainly to the changes in growing conditions for key agricultural inputs. That's
the primary finding of WRI's forthcoming report: Weeding Risk, due out in October.
The current drought in India could be a harbinger of things to come. A 2 month long drought
has afflicted almost half the country during this summer's rainy (monsoon) season. The
monsoon rains that are critical for crops such as rice, soybeans, and sugarcane, are 85%
below normal. As a result, India's sugar crop in 2008 was 45% lower than the previous year,
and this year's crop is expected to be the same or worse.
Overall food prices in India have risen 10%, owing largely to the drought. And global sugar
prices have reached a 28-year high, in part because of lower production in India (India is the
2nd-largest sugar producer, in part because of growing demand for ethanol. Climate change's
impact on precipitation patterns is predicted to make droughts such as this year's more
common and prolonged than in the past.
What does this mean for investors in the food and beverage industry? WRI's forthcoming
Weeding Risk report attempts to answer those questions by examining the impact that climate
change and water scarcity would have on key sub sectors, including aquaculture, dairy,
poultry, tea, sugar, starch and confectionery and edible oils.
The report's main findings are that climate change and water scarcity can have the following
impacts on the sector:
Raise agricultural commodity prices and increase price volatility by decreasing yields.
Increase processing costs through operational disruptions and treatment costs.
Create food safety challenges and conflicts with local communities over resource use
Leading F&B companies will find ways to build corporate and supply chain resilience to
potential risks. Companies that understand the risks they are facing, and are actively building
their resilience to the impacts, are better long term investments.
The forthcoming Weeding Risk report is being produced in partnership between WRI, the
International Finance Corporation (IFC), and HSBC Bank.