Coke's Relationship with Bottlers: To "Revive and Sustain"



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Code : COM0030

Year :
2004

Industry : Beverages

Region : US

Teaching Note:Available

Structured Assignment :Available

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History An Atlanta pharmacist, John Pemberton, in an experiment to create a brain tonic, invented Coca-Cola, in the year 1886. This potion was converted into a non-alcoholic beverage, by adding sugar and carbonated water to it. The "delicious and refreshing" soft drink was available at the soda-fountains for five cents a glass. Asa Griggs Candler, a Georgia-based druggist bought the company in 1891, and registered the trademark "Coca-Cola", in 1893. In 1894, Coca-Cola was first bottled in a common glass bottle called 'Hutchinson' by Joseph Biedenharn, in Vicksburg, Mississippi. Candler achieved large scale bottling of the beverage, after opening the first syrup manufacturing plant the same year...

Coke and its Bottlers The affluence of Coke's business depended on its bottling operations all through the company's history. It was often observed that the bottlers' efforts and their salesmanship brought Coke close to the public. Moreover, in its early history, Coke's bottlers became very famous in their local territories. "A Coca-Cola bottler with all his family and loyal employees is one of the strongest business influences in any community", George Cobb, a Coca-Cola bottler based in Georgia wrote in 1910, "and what a tremendous asset to the parent company!"...

Coke's Relations Strained Ivester, who was responsible for the consolidation of Coke's bottling system, was blamed for the strained relations with the bottlers. Under his plan, the company became the largest single stakeholder in most of the huge bottling units, and ran the business on terms favorable to Coke. Under Goizueta and Ivester, checking and supervision of the bottlers and operations people, domestic and overseas, took place. Coke had to approve their budgets, advertising campaigns, initiatives and programs of all kinds...

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