Managing in Troubled Times Case Study

Coca Cola in Germany (Part A) Challenges due to Deposit Law

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Abstract:
The focus of the case is on the German operations of the Coca-Cola Company. The company had pioneered the carbonated soft drink market in Germany and had dominated the market throughout its 70 years of operations. But problems began to crop up in early 2000. Coca-Cola had initiated consolidation of its bottlers in order to improve its global supply chain management. In Germany, the company initiated the same by 2001 and planned to complete the process by the end of 2003. But the introduction of the deposit law had a negative impact on the German Beverages and bottling industry. This also affected Coca-Cola’s German operations. As a result its market share started decreasing. In 2004, the new CEO, Neville Isdell, took charge and began to evaluate the options available to improve the situation.

Pedagogical Objectives:

• To discuss why sales declined in Coca-Cola’s German subsidiary
• To discuss the Deposit Law
• To discuss the options left before Coca-Cola in increasing the sales and countering Deposit Law.

Keywords : Coca-Cola; Coke; Coca-Cola in Germany; German; Deposit Law; Consolidation of bottlers; Sandy Allen; German Nationwide Recycling System; Waste Management in Germany; Pepsi Co.; Managing in Troubled Times Case Study; Hard discounters in Germany; Local German Beverages; PET bottles; Refillable bottles; Carbonated Drinks; Non-corbonated drinks

Contents:

• Background Note
• Coca-Cola's German Operations
• Consolidation of bottlers
• Deposit Law
• Options available for Coca-Cola