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CC1 Limited Partnership d/b/a Coca-Cola Puerto Rico Bottlers

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Case Number:
12-CA-210306

Date Filed:
11/21/2017

Status:
Closed

Location:
Toa Baja, PR

Region Assigned:
Region 12, Tampa, Florida

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• 8(a)(5) Repudiation/Modification of Contract[Sec 8(d)/Unilateral Changes]

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1 The Coca‑Cola Company and its bottling partners are collectively known as the Coca-Cola system. The Coca‑Cola Company does not own, manage or control most local bottling companies.

how the famous drink was born, interesting facts

For 120 years this carbonated drink has been considered one of the symbols of America. And its name – “Coca-Cola” – remains the most expensive brand in the world.

Alexey Levin

The sensation exploded with the power of an atomic bomb. On April 19, 1985, the chairman of the board of directors of The Coca-Cola Company, Roberto Goisueta, and its president, Donald Keyhoe, informed the media about the upcoming press conference. Its goal was formulated intriguingly: the most significant innovation in the soft drinks market since the company’s existence. Thus began the history of Coca-Cola.

Atlanta Bomb

Four days later, two hundred reporters, photographers, and cameramen gathered at New York’s Lincoln Center, joined by satellite from colleagues in Los Angeles, Chicago, Atlanta, Houston, and Toronto. There were some information leaks: the day before, newspapers, radio, and television said that Coca-Cola prepared according to a modified recipe would soon be on sale. And on the day of the press conference, when the Coca-Cola story began, April 22, PepsiCo President Roger Enrico in a special letter informed his subordinates about the world-historic victory over the eternal competitor. Our competitors, Enrico wrote, decided to remove their branded product from the market and replace it with a new drink that tastes like Pepsi. On this occasion, Enrico declared Friday a non-working day. He also made a brilliant publicity stunt out of it by publishing his circular in the newspapers.

The rumors were true. Top managers of the Coca-Cola company said that the famous drink is to be replaced, however, promising that the “diet” version with sugar substitutes will remain the same. Goisueta expressed confidence that the triumph of the modified version is guaranteed: “We have always been the best and have become even better. ”

There were good reasons for such an optimistic forecast. In recent years, Coca-Cola marketers have sounded the alarm about the strengthening of the position of PepsiCo, which in the middle of 19The 80s quickly caught up with a rival on the drinking front. Numerous surveys have shown that the taste of Pepsi appeals to a modest but growing number of consumers. At the initiative of Goisueta, the technical department of the company changed the recipe of Coca-Cola and conducted many tests, the participants of which were offered to “blindly” try both Coca and Pepsi and evaluate their taste. Most of the tasters were in favor of a new version of Coca-Cola.

Popular anger

And then the course of events took an unexpected turn. According to the history of Coca-Cola, a flurry of protests hit the brand’s headquarters – US residents categorically demanded not to deprive them of their favorite drink. The number of private letters alone exceeded 40 thousand, and they were not distinguished by delicacy (one angry citizen even declared that it would be better if representatives of the company burned the Stars and Stripes banner at his door). Coca-Cola also received 557 collective petitions with 28,138 signatures and more than 400,000 phone calls.

This is not to say that customers did not like the new product, it sold well, and few were able to taste both versions. Even Seattle resident Guy Mullins, who organized a noisy campaign for the return of good old coca, turned out to be a useless taster. Americans were outraged by the very attempt on the national symbol, which Coca-Cola has long become for them. And the leaders of the company understood this in time. On July 11, Goisueta and Kiho publicly apologized to their compatriots (which no major American corporation had done before!) and assured that the old drink would again appear on the market under the name Coke Classic.

How did it happen that an ordinary soft drink turned out to be the subject of mass admiration?

The Birth of a Masterpiece

John Stith Pemberton was a native Southerner, a resident of Georgia. For two years he studied at the Southern Botanical and Medical College, where he took courses in pharmacology, botany and chemistry, which were not the worst for those times (for America, not for Europe). Later, he sold medicines, paints and perfumes in Columbus, fought with the northerners as an officer, and in 1870 settled in Atlanta. Pemberton was fond of inventing medicinal potions, even came up with a marketed remedy for cereals, which brought him several thousand dollars in profit. After that, Pemberton went into more serious business.

In the middle of the 19th century, European ophthalmologists and laryngologists began to use an alcoholic tincture of the leaves of Erythroxylon coca, an evergreen South American plant from the central Andes, for local anesthesia during operations. Soon, German chemists Friedrich Gadke and Albert Niemann isolated an active alkaloid from coca, which Niemann called cocaine. In 1863, the French pharmacist Angelo Mariani mixed coca extract with red Bordeaux wine and put this drug on sale to treat “fatigue of mind and body. ” Thanks to skillfully staged advertising, it brought its creator worldwide fame and gigantic incomes (he is considered the first person to make a millionth fortune on cocaine). Henrik Ibsen, Emile Zola, Jules Verne, Robert Stevenson, Arthur Conan Doyle admired Mariani’s wine, Jules Massenet and Charles Gounod dedicated music to him, he was drunk by the English Queen Victoria, the Spanish monarch Alphonse VIII and Pope Pius X, they were also refreshed with it Russian imperial court. In accordance with Mariani’s recommendation, it was necessary to drink three glasses daily, which contained about a hundred milligrams of pure cocaine, a dose by no means small. The insidious drink was banned everywhere for sale only during the First World War.

Mariani’s prescription, published in a French pharmacological guide, interested Pemberton. In 1884, he opened a small factory producing “Pemberton’s French Cocaine Wine”, which enjoyed considerable success, although it was by no means cheap – at a dollar a bottle. It was still the same Mariani Wine, but with a small addition of kola nut extract (more precisely, the seeds of the West African pointed cola, Cola acuminata). This extract was a very popular aphrodisiac (it contains a lot of caffeine). Things were going well, a year later Pemberton acquired three partners, and in January 1886 they registered their partnership as the Pemberton Chemical Company.

Big idea

One of the co-owners was Frank Robinson, the owner of the press on which the company printed its advertisements. It was he who prompted the head of the company to a great idea. In America, especially in the southern states, they were very fond of soda with syrup. At first, it was sold on tap in kiosks (soda fountains, “soda fountains”), and since 1885 they began to produce it in bottles. In Atlanta, sweet sodas were available at five outlets, but only during the summer months. Robinson figured out that good syrup for soda stands could make a lot more money than “cocaine wine. ” Pemberton also had no doubt that something like cold carbonated coffee would sell well in the hot South, and began experimenting with the same extract. cola. However, this liquid had a vile bitter-astringent taste. Pemberton’s wine suffered from the same defect, but was sold as a remedy, and here a soft drink was needed. Pemberton realized that of all the ingredients in cola, he only needed caffeine. In America, this alkaloid was then made from tea and coffee, but Pemberton preferred the more expensive and purer caffeine, or rather, its citrate salt (citrate) produced by the German pharmaceutical corporation Merck, which used the same cola as a raw material. Caffeine is also bitter, but Pemberton had no doubt that sugar and other additives would ennoble the taste of the syrup. At the same time, he did not want to give up cocaine, which brought him success in the “wine” epic. In the end, the stubborn 54-year-old apothecary got his way by calling in vanilla, burnt sugar, lime juice, and some essential oils, and brewing a thick dark brown syrup from these drugs in a forty-gallon (150 l) copper cauldron.

Pemberton experimented with syrup in April-May 1886. He sent samples to Willis Venable, owner of a thriving soda shop in downtown Atlanta. After several samples, Venable found the drink satisfactory and agreed to sell it to visitors (it is believed that this happened on May 8).

Now it was necessary to come up with a name that could attract the most respectable audience. Pemberton and his partners solved this problem through brainstorming. History is silent about whether they were drinking their caffeine-cocaine cocktail or something stronger at that time, but it is known that Robinson proposed the magical formulation of Coca-Cola, which contributed a lot to the popularity of the drink. He later wrote that this verbal construction attracted him both by its euphony and by the fact that it effectively combined both main ingredients. He preferred the Latin cola to the English kola so that both halves of the name begin with the same letter (then such alliterations were in great vogue). 29In May, an ad appeared in the Atlanta Journal announcing “a new popular soda water that combines the properties of the amazing coca plant and the famous kola nuts.” It was the first printed advertisement for Coca-Cola.

In the early summer of 1887, Robinson depicted the name Coca-Cola in slashed “Spencer” type, which at that time in America was considered the norm of penmanship. And so the famous logo was born, which has survived to this day.

Business is business

The first success almost turned out to be the last. Pemberton’s chronic stomach disease worsened, and he practically retired, entrusting them to Robinson. Coca-Cola was available from Venebla and several other drugstores in the city, but for the whole summer only 25 gallons of syrup were purchased for less than fifty dollars. Robinson did not despair. In the spring, when soda stands reopened in the city, he organized a massive advertising campaign, hired a traveling salesman, and by the summer had orders for almost a thousand gallons. And then he convinced the ailing Pemberton, who had a little more than a year to live, to file an application with the Patent Office for the registration of a trademark for “Coca-Cola syrup and extract.”

But the drink was truly saved when the rights to manufacture it were acquired by a major Atlanta apothecary, Asa Candler, for $2,300. Together with Robinson, they “edited” the recipe – they almost removed the cola extract and reduced the amount of coca. In 1891, Candler opened a syrup factory, and a year later he incorporated the Coca-Cola Company of Georgia. Candler kept five hundred $100 shares, gave a dozen to Robinson, and put the remaining $490 on the stock exchange. 75 shares were sold, raising only $7,500.

But Candler proved to be a business genius. He realized that the supply of syrup to pharmacists did not promise big profits, and managed to interest wholesalers in it. And in 1899, he ceded to Chattanooga lawyers Benjamin Thomas and Joseph Whitehead the rights to sell Coca-Cola in bottles almost throughout America. He demanded only $1 from them – and he did not lose. Thomas and Whitehead not only launched the first factory for the production of bottled Coca-Cola in their city, but also sold the corresponding licenses to other businessmen, and by the end of 1910 years across the country, the number of such factories reached four hundred. Candler’s firm guaranteed each franchisee a supply of concentrate, and he received a monopoly on the production of a bottled drink in his area. Demand for concentrate grew rapidly, and in the early 20th century, annual production exceeded half a million gallons. Candler built factories in Chicago, Dallas, Baltimore and Los Angeles. When he retired in 1919 and sold his shares, their price was $25 million.

America Conquered

Candler’s stock was acquired by a major banker, Ernest Woodruff, who put his son Robert in charge of the corporation four years later. He lived until 1985 and until his death (at the age of 95!) either directly led the company or had a behind-the-scenes, but decisive influence on its affairs. Woodruff was also one of the world’s largest philanthropists: he donated about $350 million to the arts, education, medicine, and beautification of Atlanta.

soft drink of America. Candler literally flooded the country with millions of watches, thermometers, lighters, fans, pencils, school notebooks and God knows what else with Coca-Cola emblems. Woodruff continued a policy of super-intensive promotion of his product, which he entrusted to Bill D’Arcy’s advertising agency. Americans were taught to continuously consume Coca-Cola by all possible means – billboards, posters, pamphlets, booklets, radio, film and (later) television advertisements, witty slogans and recommendations from all kinds of stars. The D’Arcy firm hired excellent illustrators to turn the Coca-Cola symbols into a familiar feature of the American landscape. Even almost sacred images of a corpulent Santa Claus in a red and white sheepskin coat first appeared in 1931 in a Christmas ad for a drink prepared by one of those brush wizards, Haddon Sunblom. US presidents, the Beatles, and many other celebrities posed in front of the cameras with Coca-Cola bottles.

Worldwide expansion

When Woodruff took over, Coke was sold in the US, Canada, Puerto Rico and Cuba. He immediately began to promote the drink to the Old World and quickly succeeded. But the worldwide expansion of Coca-Cola fell on the years of the Second World War: in 19In 1941, Woodruff proclaimed that every American soldier, wherever he fought, could drink Coke at any moment. The company built (with public funds) 64 factories near the various theaters of war, which produced 5 billion nickel bottles. After the war, Coca-Cola was distributed almost everywhere where American goods were available. Of course, its penetration into new markets sometimes led to conflicts, and not only because of competition with local drinks (in some places, Coca-Cola was perceived as a symbol of the spiritual aggression of American imperialism – for example, in the USSR, where Khrushchev signed an agreement for the supply of PepsiCo concentrate) . And after the collapse of Soviet power, Coca-Cola also appeared in Russia. According to a recent poll, about 25% of Russians prefer it (Pepsi – only 17%).

The evolution of the drink

In its 120 years of existence, Coca-Cola, unlike Bavarian beer, has by no means remained unchanged. The firm has never said how many times the drink has been modified, but experts believe there are more than a dozen innovations. For example, for acidification, Candler began to use not citric, but phosphoric acid. Cocaine was seized in 1906 after the U.S. Congress banned the inclusion of “poisonous and harmful ingredients” in foods. Since that time, decocainized coca leaves have been used for flavoring, which contain a dozen more relatively harmless alkaloids. However, even before that, Coca-Cola lovers hardly had a chance to turn into drug addicts. According to the 1902 tests, a serving of soda contained only 0.2 mg of cocaine. Gradually, the company also reduced the concentration of caffeine (there is also a caffeine-free version), and by the early 1980s, partially replaced cane sugar with fructose corn syrup. In August 1982, with great fanfare, a “dietary” version was released with a reduced content of phosphoric acid, a modified composition of fruit oils and, most importantly, no sugar at all. Diet Coke contained equal parts of saccharin and aspartame, but soon it was made exclusively with aspartame. On March 19In 1985, the corporation broke its promise never to add new flavors to the drink and began producing Coca-Cola with cherry syrup – Cherry Coke, which appeared a year later in a diet version. Over the past few years, lemon, vanilla and lime have been added to it, as well as Coca-Cola C2, a low-calorie version of the “classic” version with reduced sugar content.

It is widely believed that Coca-Cola tastes differently in different countries. “Coca-Cola does not produce a drink. We only produce the concentrate and then supply it to partners around the world who dilute it with water and bottle the finished drink into bottles or cans,” Andras Kallos, the company’s senior manager of press relations, told TechInsider. – The concentrate is the same everywhere, but the water, although it is being purified, in different regions may differ in mineral composition. Perhaps this is what creates the very difference in taste. Many people note that the taste depends on the packaging – a plastic bottle, a glass or an aluminum can – but this is more like self-hypnosis, it is almost impossible to notice the difference. Much stronger sensations depend, say, on the temperature of the drink. In any case, wherever you are, you can be sure that you are drinking real Coca-Cola.

COCA-COLA AND EMPTINESS – Ogonyok No. 3 (4729) of 01/27/2002

414

9 min.

…

The world will no longer be as empty as before. 94% of people on Earth know what Coca-Cola is. And this means that emptiness is defeated completely and irrevocably. Her emptiness, the main enemy – Asa Griggs Candler, the founder of the Coca-Cola company, was born 150 years ago. And on his birthday, he seems to have received the best present: the whole world is filled to the brim with “curly” bottles with the coveted reddish label. It turned out like this

THE CASE OF THE CARRIAGE AND THE MAGIC VIAL

As a child, Eiza often rode his parents’ wagon drawn by an old horse with the typical American horse name Nest. One, as luck would have it, on a fine and warm spring morning, he and his father went on this same wagon to Sunday mass in the main cathedral of Villa Rica, their native southern town. But on one of the streets, the shaggy dog ​​of the church watchman, Mr. Raymond, suddenly jumped out onto the road. Eiza’s father pulled on the reins, Nest stopped abruptly, the wagon shook, and the boy fell to the ground, hitting his head hard on the iron hoop of the wheel. After such blows, some do not survive, some become geniuses or idiots. But Eiza had a strange phobia from that day – he began to be afraid of emptiness. Yes, and the head of the unfortunate now often and for no reason hurt.

This circumstance played an important role in the events that will be described later. However, before proceeding to the presentation of this moralizing story, it is necessary to mention one more important detail. The fact is that little Aiza was a witness to the war between the North and the South, which happened just at that very time.

One day a small detachment of southerners lodged in Villa Rica, and it so happened that a military doctor temporarily settled in the house of the Candlers. Since then, Asa’s most vivid childhood impression was the doctor’s battered case, which was full of glass jars, vials and bottles filled with colorful liquids and powders. The boy could reverently look at these treasures for hours, not even dreaming of ever getting the same ones.

In parting, the compassionate doctor gave Eise one empty vial. And in that happy moment, little Candler realized what he would do for the rest of his life.

After the war ended, Aiza was sent to university by her father. However, the young man did not study there for several years. In 1870, he dropped out of school and went to work as a salesman in a store with a pharmacist he knew. Candler remembered those happy days for the rest of his life. For days on end, Eiza filled the empty shelves of the shop with numerous test tubes, bottles, jars, bottles and flasks, wide and elongated, colored and transparent, large and small, open and stoppered. The apothecary couldn’t help but rejoice at his young assistant, the store’s income grew, and as a result, Eiza managed to save enough money to open his own pharmacy. It was the ultimate dream: after all, now all the glass, bottle-and-jar wealth shimmering in the light will belong only to him. In 1886 he moved to Atlanta.

THE SECRET OF THE VILLAGE DOCTOR

The first thing Eiza did when he opened his business in Atlanta was to get to know all the local pharmacists. They were mostly old, grouchy and unfriendly bachelors, with little interest not only in their own business, but in everything that was going on around them. Of all of them, Eise liked only 55-year-old John Stith Pemberton, a veteran of the Revolutionary War and a good doctor. It was said in the city that he knew the Indians and brewed witchcraft in the backyard of his house to call the Indian spirits. However, Eiza found him to be quite mentally healthy, although a somewhat eccentric person, who was also well versed in the pharmaceutical business. True, recently Pemberton’s trade was going pretty badly, so he moved to the outskirts and began to practice medicine.

Within a few months they became friends, paid each other frequent visits, and Eiza repeatedly complained to Pemberton of terrible headaches. In addition, he showed his friend his collection of vials, located in the back of the pharmacy. Here, in the dark pantry, there was nothing but racks on which hundreds of bottles of various shapes and sizes stood close to each other. None of them looked like the other: they all sparkled like new – there was not even a trace of dust, and next to some lay neatly folded notes indicating where and when this or that bottle was purchased. However, it seemed to Pemberton that Eiza was not at all happy, contemplating his glass riches.

“You see, my friend,” Candler said then. “I adore each of them, I know which one has a crack, and which one has a broken neck, I remember the location of any of these bottles by heart. But I have nothing to fill them with: I don’t like ordinary powders and mixtures, and I don’t have unusual ones.

The rural doctor remembered these words. And now, a few weeks later, he reappeared in the city. Pemberton tied up his horse and sneaked into a friend’s drugstore through the back door. Eiza sat in a rocking chair with a wet towel over his head and suffered from another bout of pain. Pemberton placed an old brass teapot on three legs in front of him, took out a wooden stirrer, some powders and liquids. Then he mixed them for a long time and diligently. And the resulting drink was given to try by Eise, who had already begun to doubt the sanity of his friend…

A few minutes later the headache was gone. And the taste of the drink was simply incomparable. The apothecary rushed to the cauldron and studied its contents for a long time. Then they whispered about something, and Eiza took out all his savings from a hiding place in a bookcase – exactly $ 2,300. Pemberton beamed and handed Candler a piece of paper containing the secret formula.

The famous recipe was this: a mixture of linden, cinnamon, coca leaves (from which cocaine is made) and the seeds of the tropical kola tree. Plus sparkling water and some alcohol.

Asa’s assistant, Frank Robinson, promptly came up with the name based on the syrup’s two main ingredients: Coca-Cola.

“Besides, two C’s would look better in a shop window,” he said categorically.

So, in fact, Coca-Cola was born – a company and a drink.

Eise and the Emptiness

Now that Eise had something to pour into his many jars, and headaches no longer prevented him from working, he began to fill the vacuum in the soft drinks market.

At first, the pharmacist sold 9 glasses of Coca-Cola a day for 5 cents per glass. A poster hung at the entrance to his store, calling the drink “a tonic and an ideal stimulant of the nervous system,” useful for headaches, hysteria, melancholy, and especially recommended for the elderly.

Eiza also took advantage of his connections in the drug business, and soon Coca-Cola appeared in all the drugstores in Atlanta. He wanted to see advertisements for the drink anywhere and everywhere. For those who sold his brainchild, Eiza came up with a whole system of discounts and gifts, such as watches or calendars with Coca-Cola symbols. Tear-off coupons for a free drink were printed in all local newspapers. Eise even brought in the local music hall star Hilda Clarke, who was forced to repeat her love of Coca-Cola at every turn, for the advertising campaign.

Thus, our druggist’s business took off, and soon his Coca-Cola business reached national proportions: in 1895, small Coca-Cola factories opened in Chicago, Dallas and Los Angeles. By 1909, there were already 400 such enterprises operating in the United States.

Aise didn’t forget about his favorite bottles, because of which it all started. He became obsessed with a new idea – the creation of “the perfect container for the perfect drink.”

“I want,” Eiza said at that time, “so that people can tell by touch that they have Coca-Cola in their hands.

At first, the drink was poured into ceramic jugs, but then Candler personally invented the inflated glass bottle, closed with an iron stopper.

The innovation was successfully tested in Mississippi, where shopkeeper Joseph Biedenharn installed a Coca-Cola bottling machine in his shop to make it easier to deliver the drink to plantation workers.

The next reincarnation of the vessel was a straight green bottle widening at the neck with a cap instead of a cork. Finally at 1915, two businessmen from Indiana, together with Asa, came up with the famous “curly” Coca-Cola bottle, which played a significant role in the distribution of the drink because of its attractive appearance, original design, and because it can be recognized even in the dark ( this is guaranteed to protect the buyer from forgery).

As a result, America was conquered. True, the rest of the world was still little familiar with the legendary drink, and Eiza began to aggressively promote his products in Cuba, Puerto Rico and France. At 19On the 28th, Coca-Cola even made it to the Olympics: members of the US Olympic team brought 1,000 cases of Coca-Cola with them to Amsterdam, where the Games were held. However, Eiza died suddenly of a heart attack a year later. The relatives of the former pharmacist breathed a sigh of relief: no one but him was going to fill everything around with Coca-Cola bottles with the persistence of a madman. Therefore, in the same year, the company was sold to another entrepreneur.

INSTEAD OF EPILOGUE

But this is not the end of our story. A lot of Coke has leaked since Asa’s death. Both coca and cola disappeared from the drink, natural caffeine was replaced with artificial, sweeteners were added instead of sugar. Appeared devices for the sale of Coca-Cola and cans. Sprite and Fanta were born. However, legends and anecdotes about Asa Candler and his love for Coca-Cola still circulate in Atlanta.

So, they say that he often went to Pemberton’s grave and there he talked for a long time with a stone tombstone. Moreover, the tombstone periodically gave him worthwhile advice on how to develop the Coca-Cola business.

You can hear a lot of interesting things about Eiza’s charity work. For example, in 1914, he donated one million dollars and 75 acres of good land to build the University of Atlanta, to which he gave about $8 million during his lifetime and which is called “Coke University” behind its back. Shortly before Asa’s death, he was awarded a professorship here – so he dealt with a gap in his education.