One of America's favorites - Coca-Cola (Part 1)

This is the first of 2 posts on "One of America's favorites - Coca-Cola" (Part 1)

Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines in more than 200 countries. 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. Such bottlers include Coca-Cola Enterprises, which is the largest single Coca-Cola bottler in North America and western Europe. 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.
Based on Interbrand's best global brand 2011, Coca-Cola was the world's most valuable brand.

The prototype Coca-Cola recipe was formulated at the Eagle Drug and Chemical Company, a drugstore in Columbus, Georgia, by John Pemberton, originally as a coca wine called Pemberton's French Wine Coca. He may have been inspired by the formidable success of Vin Mariani, a European coca wine.
In 1886, when Atlanta and Fulton County passed prohibition legislation, Pemberton responded by developing Coca-Cola, essentially a nonalcoholic version of French Wine Coca. The first sales were at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886. It was initially sold as a patent medicine for five cents a glass at soda fountains, which were popular in the United States at the time due to the belief that carbonated water was good for the health. Pemberton claimed Coca-Cola cured many diseases, including morphine addiction, dyspepsia, neurasthenia, headache, and impotence. Pemberton ran the first advertisement for the beverage on May 29 of the same year in the Atlanta Journal.

By 1888, three versions of Coca-Cola – sold by three separate businesses – were on the market. A copartnership had been formed on January 14, 1888 between Pemberton and four Atlanta businessmen: J.C. Mayfield, A.O. Murphey; C.O. Mullahy and E.H. Bloodworth. Not codified by any signed document, a verbal statement given by Asa Candler years later asserted under testimony that he had acquired a stake in Pemberton's company as early as 1887.
Asa Candler, however, eventually took on a more formal position by being part of the Coca-Cola Company incorporation filed in the Fulton County Superior Court on March 24, 1888. This action included Charley Pemberton and Woolfolk Walker, along with the latter's sister, Margaret Dozier. The four made up the original shareholders for "Coca-Cola Company," a Georgia corporation. All parties held copies of the Coca-Cola recipe and could continue to use the formula separate of each other.
Pemberton, though, had declared that the name "Coca-Cola" belonged solely to his son Charley. The situation was quite agitating to both Candler and Walker, and quickly placed the two at odds with Charley Pemberton. What further caused friction over this issue was that John Pemberton variously forgot he had actually signed over the sole rights to the "Coca-Cola" name to his son Charley earlier. Pemberton's ongoing health problems, compounded by his morphine addiction brought about from his old Civil War injury, made the situation difficult.
Charley Pemberton's record of control over the "Coca-Cola" name was the underlying factor that allowed for him to participate as a major shareholder in the March 1888 Coca-Cola Company incorporation filing made in his father's place.  More so for Candler especially, Charley's position holding exclusive control over the "Coca Cola" name continued to be a thorn in his side.

Asa Candler's oldest son, Charles Howard Candler, authored a book in 1950 published by Emory University. In this definitive biography about his father, Candler specifically states: "..., on April 14, 1888, the young druggist [Asa Griggs Candler] purchased a one-third interest in the formula of an almost completely unknown proprietary elixir known as Coca-Cola."

The deal was actually between John Pemberton's son Charley and Walker, Candler & Co. - with John Pemberton acting as cosigner for his son. For $50 down and $500 in 30 days, Walker, Candler & Co. obtained all of the one-third interest in the Coca-Cola Company that Charley held, all while Charley still held on to the name. After the April 14th deal, on April 17, 1888, one-half of the Walker/Dozier interest shares were acquired by Candler for an additional $750.

Charles Howard Candler's statement that April 14, 1888 was the date his father secured a "one-third interest in the formula" held by Charley Pemberton for the then obscure Coca-Cola elixir, none-the-less confirms this event was a major turning point for Asa Candler and his interests in Coca-Cola. This, too, was a most auspicious occasion that Asa Candler would have especially wanted to preserve in an 'official' photograph. By this time the "Coca-Cola" syrup-making apparatus had already been moved from Joe Jacob's pharmacy to the basement of Candler's larger 47 Peachtree Street location, where the drink's ever increasing syrup-bottling demands could be better handled.

In 1910, Asa Candler had ordered all corporate documents pertaining to the first Coca-Cola Company burned. The original 1888 photograph shows the very beginnings of the Coca Cola Company, and formerly was the personal property of Asa Griggs Candler.

In 1914, Margaret Dozier, as co-owner of the original Coca-Cola Company in 1888, brazenly came forward to claim 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.

In 1892, Candler set out to incorporate a second company; "The Coca-Cola Company" (the current corporation). However, in 1910, Candler had the earliest records of the "Coca-Cola Company" burned. This was claimed to have been made during a move to new corporation offices around this time.
The loss of the early corporate records further obscured the 1888 corporation's legal origins. Only one sole original "ASA G. CANDLER & CO." photograph from 1888 remains, and that example Candler at one time kept at his private home outside of Atlanta.

After Candler had gained a better foothold of Coca-Cola in April 1888, he never-the-less 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.
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.
In Charles Howard Candler's 1950 book about his father, he stated: "On August 30th {1888}, he {Asa Candler} became sole proprietor of Cola-Cola, a fact which was stated on letterheads, invoice blanks and advertising copy."

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.
Coca-Cola was sold in bottles for the first time on March 12, 1894. The first outdoor wall advertisement was painted in the same year, in Cartersville, Georgia.

 

This Coca-Cola advertisement from 1943 is still displayed in the small city of Minden, Louisiana.

The first bottling of Coca-Cola occurred in Vicksburg, Mississippi, at the Biedenharn Candy Company in 1891. Its proprietor was Joseph A. Biedenharn. The original bottles were Biedenharn bottles, very different from the much later hobble-skirt design now so familiar. Asa Candler was tentative about bottling the drink, but two entrepreneurs from Chattanooga, Tennessee, Benjamin F. Thomas and Joseph B. Whitehead, proposed the idea and were so persuasive that Candler signed a contract giving them control of the procedure for only one dollar. Candler never collected his dollar, but in 1899, Chattanooga became the site of the first Coca-Cola bottling company. The loosely termed contract proved to be problematic for the company for decades to come. Legal matters were not helped by the decision of the bottlers to subcontract to other companies, effectively becoming parent bottlers.
Coke concentrate, or Coke syrup, was and is sold separately at pharmacies in small quantities, as an over-the-counter remedy for nausea or mildly upset stomach.

By the time of its 50th anniversary, the soft drink had reached the status of a national icon in the USA. In 1935, it was certified kosher by Atlanta Rabbi Tobias Geffen, after the company made minor changes in the sourcing of some ingredients.

The longest running commercial Coca-Cola soda fountain anywhere was Atlanta's Fleeman's Pharmacy, which first opened its doors in 1914.Jack Fleeman took over the pharmacy from his father and ran it till 1995; closing it after 81 years.
On July 12, 1944, the one-billionth gallon of Coca-Cola syrup was manufactured by The Coca-Cola Company.
Cans of Coke first appeared in 1955.

On April 23, 1985, Coca-Cola, amid much publicity, attempted to change the formula of the drink with "New Coke". Follow-up taste tests revealed most consumers preferred the taste of New Coke to both Coke and Pepsi, but Coca-Cola management was unprepared for the public's nostalgia for the old drink, leading to a backlash. The company gave in to protests and returned to a variation of the old formula using high fructose corn syrup instead of cane sugar as the main sweetner, under the name Coca-Cola Classic, on July 10, 1985.

On July 5, 2005, it was revealed that Coca-Cola would resume operations in Iraq for the first time since the Arab League boycotted the company in 1968.
In April 2007, in Canada, the name "Coca-Cola Classic" was changed back to "Coca-Cola". The word "Classic" was removed because "New Coke" was no longer in production, eliminating the need to differentiate between the two. The formula remained unchanged.
In January 2009, Coca-Cola stopped printing the word "Classic" on the labels of 16-US-fluid-ounce (470 ml) bottles sold in parts of the southeastern United States. The change is part of a larger strategy to rejuvenate the product's image. The word "Classic" was removed from all Coca-Cola products by 2011.
In November 2009, due to a dispute over wholesale prices of Coca-Cola products, Costco stopped restocking its shelves with Coke and Diet Coke. However, some Costco locations (such as the ones in Tucson, Arizona), sell imported Coca-Cola from Mexico.
Coca-Cola introduced the 7.5-ounce mini-can in 2009, and on September 22, 2011, the company announced price reductions, asking retailers to sell eight-packs for $2.99. That same day, Coca-Cola announced the 12.5-ounce bottle, to sell for 89 cents. A 16-ounce bottle has sold well at 99 cents since being re-introduced, but the price was going up to $1.19.
In 2012, Coca-Cola would resume business in Burma after 60 years of absence due to U.S.-imposed investment sanctions against the country. Coca-Cola with its partners is to invest USD 5 billion in its operations in India by 2020.

When launched, Coca-Cola's two key ingredients were cocaine and caffeine. The cocaine was derived from the coca leaf and the caffeine from kola nut, leading to the name Coca-Cola (the "K" in Kola was replaced with a "C" for marketing purposes).

Pemberton called for five ounces of coca leaf per gallon of syrup, a significant dose; in 1891, Candler claimed his formula (altered extensively from Pemberton's original) contained only a tenth of this amount. Coca-Cola once contained an estimated nine milligrams of cocaine per glass. In 1903, it was removed.
After 1904, instead of using fresh leaves, Coca-Cola started using "spent" leaves – the leftovers of the cocaine-extraction process with trace levels of cocaine. Coca-Cola now uses a cocaine-free coca leaf extract prepared at a Stepan Company plant in Maywood, New Jersey.
In the United States, the Stepan Company is the only manufacturing plant authorized by the Federal Government to import and process the coca plant, which it obtains mainly from Peru and, to a lesser extent, Bolivia. Besides producing the coca flavoring agent for Coca-Cola, the Stepan Company extracts cocaine from the coca leaves, which it sells to Mallinckrodt, a St. Louis, Missouri, pharmaceutical manufacturer that is the only company in the United States licensed to purify cocaine for medicinal use.

Kola nuts act as a flavoring and the source of caffeine in Coca-Cola. In Britain, for example, the ingredient label states "Flavourings (Including Caffeine)." Kola nuts contain about 2.0 to 3.5% caffeine, are of bitter flavor and are commonly used in cola soft drinks. In 1911, the U.S. government initiated United States v. Forty Barrels and Twenty Kegs of Coca-Cola, hoping to force Coca-Cola to remove caffeine from its formula. The case was decided in favor of Coca-Cola. Subsequently, in 1912, the U.S. Pure Food and Drug Act was amended, adding caffeine to the list of "habit-forming" and "deleterious" substances which must be listed on a product's label.
Coca-Cola contains 34 mg of caffeine per 12 fluid ounces (9.8 mg per 100 ml).

Ingredients
Carbonated water
Sugar (sucrose or high-fructose corn syrup depending on country of origin)
Caffeine
Phosphoric acid
Caramel color (E150d)
Natural flavorings
A can of Coke (12 fl ounces/355 ml) has 39 grams of carbohydrates (all from sugar, approximately 10 teaspoons), 50 mg of sodium, 0 grams fat, 0 grams potassium, and 140 calories.

Coca-Cola 375 mL cans – 24 pack (AU)

Formula of natural flavorings

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.

A popular myth states that only two executives have access to the formula, with each executive having only half the formula. 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.In 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.

The actual production and distribution of Coca-Cola follows a franchising model. The Coca-Cola Company only produces a syrup concentrate, which it sells to bottlers throughout the world, who hold Coca-Cola franchises for one or more geographical areas. The bottlers produce the final drink by mixing the syrup with filtered water and sweeteners, and then carbonate it before putting it in cans and bottles, which the bottlers then sell and distribute to retail stores, vending machines, restaurants and food service distributors.
The Coca-Cola Company owns minority shares in some of its largest franchises, such as Coca-Cola Enterprises, Coca-Cola Amatil, Coca-Cola Hellenic Bottling Company and Coca-Cola FEMSA, but fully independent bottlers produce almost half of the volume sold in the world. Independent bottlers are allowed to sweeten the drink according to local tastes.
The bottling plant in Skopje, Macedonia, received the 2009 award for "Best Bottling Company".

**Part 2 Tomorrow**