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How was the 138 year old Coca Cola made?

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Coca Cola almost died in infancy. In 1863, a pharmacist named Angelo Mariani soaked “coca leaves” in French Bordeaux wine while mixing wine, and launched a refreshing wine drink – “Mariani wine”. It’s refreshing because it contains coca leaf, a South American herbal medicine, in which cocaine has been chewed by Peruvians and Bolivians for nearly 2000 years as a stimulant and aphrodisiac. It is both alcohol and addictive medicine. For a time, great celebrities such as Queen Victoria, scientist Edison and novelist Conan Doyle were all fans of this popular drink.

the time came to the 1880s, which coincided with the barbaric growth of American capitalism. After retiring as a veteran, pharmacist John Pemberton suffered from war injuries for many years. Inspired by “Mariani wine”, he mixed alcohol, coca extract and caffeine into a caramel colored liquid – which can not only relieve pain, but also refresh the mind.
soon, he positioned the liquid as “medicinal wine” and sold it at the largest Yager pharmacy at that time for 5 cents a cup. However, in 1886, Atlanta issued a “prohibition order”, which banned the sale of medicinal wine. Pemberton worked frantically in the laboratory to improve the formula of Coca Cola. Finally, after removing the alcohol from coca cola, he successfully covered the bitterness with sucrose and made a refreshing carbonated drink with soda. Coca Cola in the modern sense was born. In the shadow of the prohibition, a large number of medicinal wine disappeared. Pemberton “reasonably avoided” the alcohol attribute of Coca Cola, but used “nourishing energy” and “relieving depression” to market the drink, which not only escaped a disaster, but also played a role in eating meat in the great depression. In the summer of 1887, the sales volume of Coca Cola reached 25000 cups / month. When Pemberton died in 1888, he passed the prescription of Coca Cola to his son Charlie. Unfortunately, Charlie was a hopeless gambler. He sold this trillion secret recipe to ASA Candler for a mere $2300. Candler is not only the new owner of Coca Cola, but also the real “father of Coca Cola”. Compared with pharmacist Pemberton, businessman Candler’s idea is extremely clear: first, change the product positioning of Coca Cola. At that time, in the eyes of the mass market, Coca Cola was still a “medicinal beverage”, which meant that only special consumer groups would be willing to accept this beverage. So Candler redefined Coca Cola as a popular drink that everyone can drink. Second, change the way Coca Cola is sold. He carefully designed a drinking ceremony – mixing, shaking and pouring out, which is no less “fancy” than the bartender in the bar. After a complex set of actions, he can get a cup of refreshing and happy fat house water. This kind of sales mode full of ritual feeling is just like the classic sentence of Oreo in 1912 – twist, lick and bubble, which makes people remember the brand quickly. Finally, Candler launched a large-scale marketing war in a new way. He mainly distributed free drink coupons, supplemented by bookmarks, stamp albums and small wallets of Coca Cola logo. At the same time, he also invited popular star Hilda Clark as the image spokesman. This kind of marketing method is common to people today, but it was the biggest marketing innovation in the 1890s. By the end of 1890, Coca Cola had accounted for more than 40% of the total sales of Atlanta cold drink market. In 1896, the annual sales volume of Coca Cola reached 560000 bottles, which is equivalent to one bottle per minute.
starting from Atlanta, Coca Cola began its crazy expansion. At the end of the 19th century and the beginning of the 20th century, Coca Cola took more than 30 forms of advertising every year, and distributed more than 1 million advertisements and gifts, including thermometer, cardboard clip art, metal billboard (50000 copies each), Japanese fan and calendar (1 million copies each), cold drink cabinet tray (2 million), cardboard Matchbox (10 million boxes), Notepad (20 million copies) Baseball cards (25 million cards), and countless cardboard and metal signs… In 1900, Coca Cola’s advertising expenses were only $85000 a year, but only two years later, the number soared to $1 million, and the number of advertisements and gifts were overwhelming. In 1913, the number of advertising materials promoted by Coca Cola reached 100 million. This crazy number, if placed in today’s Internet world, is estimated to have become a phenomenal hot search. Under the leadership of Candler, Coca Cola completed the transformation from a non-alcoholic medicinal beverage company to a pure beverage company, registered its trademark in 1905, and officially embarked on its journey as the world’s largest beverage empire in the future. Coca Cola is with the Star Spangled Banner:
The beverage empire that took off in World War II. Generally speaking, the world’s commercial empire is the product of the times, or more directly, it enjoys the dividends of national rise. If Candler completed Coca Cola’s “from 0 to 1”, then Robert Woodruff, the head of Coca Cola in 1923, completed Coca Cola’s “from 1 to 100”. During his 62 years in power, the Coca Cola Empire successfully dominated the world and ushered in its own “golden age”. Coincidentally, these 62 years are also 62 years of prosperity for the United States. As American writer Tom standidge said, “Coca Cola is a well deserved beverage representative in the 20th century. It has witnessed the rise of the United States, the prosperity of capitalism and the development of globalization.” The key node is the Second World War. On December 7, 1941, the Pacific War broke out when Japan secretly attacked Pearl Harbor. On that day, the United States announced its participation in the war. The total GDP of the three countries was 50% higher than that of the United States and Germany. After all, war is about money and food. At that time, almost everyone believed that the United States’ participation in the war was tantamount to declaring the victory of the allies. Robert directly seized the opportunity given to him by the historical process, and he decided to “join the war” with Coca Cola. Before the end of the war in 1945, the United States sent about 20 million soldiers to the European battlefield. With Robert’s efforts, “no matter where the soldiers go, the company will ensure that every soldier can drink a bottle of Coca Cola for only 5 cents at all costs.” Therefore, every soldier is synonymous with walking Coca Cola and American spirit. Like chocolate, cigarettes and chewing gum, Coca Cola has also become a military supplies for the U.S. military. At the same time, it has also exempted the quota limit of sugar. Where there are American soldiers, there will be the logo of Coca Cola – Coca Cola and the star spangled banner will always exist. However, the efficiency of production and supply of military supplies is much higher than that of commercial operation. What should we do? Coca Cola’s solution is to provide Coca Cola concentrate to the U.S. military, and with the assistance of the military, build a simple bottling plant on the front line to meet the supply – the factory will open wherever the U.S. military boots step on. Throughout the war, Coca Cola had 248 employees with the army to support the construction of the bottling plant, some of whom even had military positions in the army.
throughout World War II, Coca Cola built 64 bottling plants in the U.S. military station. These bottling plants became the seeds of Coca Cola’s globalization. After the war, Coca Cola expanded its huge production system and sales network on this basis.
from supporting the army to building factories overseas, these have become the “accelerator” of Coca Cola’s global layout. In 1980, Coca Cola had sales of nearly $6 billion and profits of $422 million, ten times that of 1962, of which 65% came from overseas departments. In 1982, the sales volume of Coca Cola in the international market accounted for 62% of the company’s total soft drink production. In 1986, the average annual net profit margin of Coca Cola company reached 10%, and the share price rose to $120. By the end of 1996, the sales volume of Coca Cola company accounted for more than half of the overseas soft drink market. consolidation of global empire: prosperous brand matrix and capillary channels. After the discovery of gold mines in California, countless “gold miners” came here one after another. In the eyes of gold miners, as long as they go to gold mines, they can make a fortune. This phenomenon has been repeated in business history – after a category is verified by the market, countless imitators will be eager to try. Coke is the same. After the globalization of Coca Cola, the soft drink industry has ushered in a “gold rush”. In addition to Pepsi, a brand that poses a serious threat to Coca Cola, there are a large number of local brands such as Laoshan cola, very cola and thirsty Cola in the Chinese market alone. If globalization is to be extended to the whole world, it is necessary to start the localization strategy in each region. Accordingly, localization will also pave the way for a diversified brand matrix. In January 1979, more than 20 days after the establishment of diplomatic relations between China and the United States, 3000 boxes of Coca Cola arrived in Beijing and Guangzhou. They did as the Romans did, chose typical Spring Festival party scenes to shoot advertisements, and fully integrated into Chinese culture through folk activities such as pasting Spring Festival couplets and setting off fireworks. They also became the first international brand to return to China.
the marketing of major categories is adjusted to local conditions, and sub brands and sub categories also blossom and bear fruit in all regions and countries around the world. Based on the strategy of super large single product, the brand is subdivided from the perspectives of crowd, taste and grade, and has created its own group brand matrix. From the perspective of product positioning, Coca Cola’s products are mainly divided into carbonated drinks and non carbonated drinks. In terms of carbonated drinks, Coca Cola has successively launched products such as Fanta, Sprite and diet coke, further expanding its product line. Among them, the sales ratio of Coca Cola, Sprite and Fanta is about 2:2:1. The balanced product structure enables Coca Cola company to take into account the needs of different groups and realize mutual complementarity between products. In terms of non carbonated drinks, Coca Cola starts with meizhiyuan. After World War II, the United States urgently needed to provide orange juice drinks for overseas troops. A fresh juice that can be evaporated and frozen in cans came out, and the meizhiyuan juice brand was born. In 1960, Coca Cola company acquired Meiliyuan company and expanded it to the world in the following decades. In China, in 2001 and 2014, Coca Cola successively launched ice dew, a packaged drinking water brand, and Chunyue, a sub brand for the younger generation of Chinese consumers. Coca Cola was launched in Japan in 1997 and further subdivided the market for children. With its lovely product image, “queer” quickly became popular and began to be popular in Asia. In addition, Coca Cola has further overweight, including tea track, green tea brand ayataka, coffee track Georgia, mineral water brand ilohas and so on. Regardless of category or brand, Coca Cola is second to none in the bottled beverage industry. In 2018, Coca Cola successfully acquired Costa, a British offline chain coffee brand, for £ 3.9 billion (about RMB 34.7 billion). Costa includes nearly 4000 stores, as well as trained baristas, vending machine business, baking and other businesses. Coca Cola has completed the expansion of offline channels and points through the acquisition of Costa, which means that you can buy Coca Cola products in all kinds of mobile places, including gas stations, cinemas and tourist centers. So far, Coca Cola has firmly established its position as the world leader in the beverage field and occupied all consumption scenes like a capillary.  
front and side of Coca Cola supply chain
For all food and beverage FMCG enterprises, “supply chain” is everything. This is also why, in the face of the rise of rookie vitality forest, Coca Cola’s first “attack” is its assembly foundry. Therefore, in addition to the creation of downstream channels and brand power itself, the occupation of the production end is equally important. “We operate in 206 countries and regions around the world, exceeding the number of States members of the United Nations.” Rick Frazier, vice president of Coca Cola supply chain, said proudly. Spreading the supply chain to the world means large-scale production and cost control, which is the most basic and difficult topic of brand globalization. The core of the supply chain: concentrate. Concentrate is the most unique role in Coca Cola’s supply chain, and its formula is by far the biggest secret in business history. Coca Cola processing plants actually produce the most concentrated liquid. 2 barrels of concentrated liquid can produce 500000 liters of Coca Cola. Together with water, sweetener and carbon dioxide, the key production of a bottle of Coca Cola is completed. Therefore, by controlling the concentrate, the company indirectly controls the stability of the whole supply chain.
controls the procurement and manufacturing process. First, raw material procurement. Coca Cola plays a leading role in the supplier selection of main raw materials, including sugar and packaging. The primary basis for Coca Cola company to select suppliers is the quality of raw materials. By controlling the quality of raw materials, it fundamentally ensures the quality of Coca Cola products. On this basis, other factors are considered to reduce the cost by controlling these factors. The second is manufacturing. Take Coca Cola (China) as an example. Coca Cola (China) has three major partners: Kerry Group, Swire Group and COFCO group. It has 25 bottling plants distributed in different regions of the country. Different partners have basically the same operation mode. At the same time, there is cooperation between partners to process some products on behalf of each other. Coca Cola’s franchise distribution system. Coca Cola’s downstream activities focus on the licensed distribution system. Coca Cola develops products, makes relevant marketing and advertising procedures, and produces concentrated syrup, which is then sold to bottlers with exclusive regions around the world. Coca Cola also has a minority stake in some large franchises, but fully independent bottlers produce almost half of global sales. “Push” and “pull” Coca Cola sales channels. Coca Cola is widely distributed in stores, supermarkets, street stores and other places. One is direct selling through large warehouse supermarkets (mass stores) and chain supermarkets (24-hour stores); The second is to distribute through large-scale wholesalers, who usually further distribute to retail stores through secondary and tertiary wholesalers; The third is to distribute directly to retail stores in the region through small wholesalers in the small area. In this process, the distribution strategy of Coca Cola series products is generally divided into two parts. One part is “push”, which sells Coca Cola products to retailers through various channels, price promotion, credit sales and other sales strategies. One part is “pull”, that is to attract consumers to buy Coca Cola products through marketing strategies such as advertising, promotion and public relations. Since the market strategy is formulated by Coca Cola company, especially the “pull” part is completely arranged by Coca Cola company, and the “push” part is proposed by Coca Cola company, and then formulated by the bottling plant according to the actual situation. The bottling plant has the final decision-making power in selecting dealers, planning sales channels, formulating price strategy and means of credit sales.

is the side of Coca Cola supply chain. In this way of franchise contract, Coca Cola focuses on the production of concentrate and advertising marketing. The bottlers and distributors of Coca Cola will establish the marketing channel to send the beverage to thousands of households through the network. However, the disadvantage is also very obvious, that is, the control of bottlers is insufficient. Once there are strong competitors, they will face challenges. For example, when competitors represented by Pepsi Cola appear, Coca Cola’s strategy is to exert pressure on bottlers to speed up the investment in modern production process, so as to strengthen Coke’s market competitive position. But bottlers also have their own wishful thinking. They believe that the beverage market has become saturated and that it is time to recover funds rather than increase investment. Because bottlers have long-term contracts as backing and control coke’s marketing network. Therefore, bottlers either veto or doubt any measures to change the status quo without active cooperation. What about Coca Cola? The answer is to take drastic measures. After careful planning and full preparation, Coca Cola established the bottler holding company, which controls the bottler’s business activities. Through the bottler holding company, Coca Cola can realize the strategic regulation of the whole supply chain. This is only the first step of the strategic plan for Coca Cola to divest its absolute control. Let the bottler holding company be listed and traded, and use the capital market to transfer 51% of the controlling right to ship, while retaining 49% of the relative controlling right. Through this series of strategic choices, we will always put ourselves in a favorable position. can new consumption shake Coca Cola

Coca Cola’s most “criticized” is unhealthy. We often get our first impression of coke from American fast food restaurants. Especially in the eyes of the middle class and Chinese parents, sugar is the culprit of obesity and sub-health. Therefore, in the past two years, drinks focusing on “health” and “fashion” have sprung up, setting off a new wave of beverage consumption. Although “0 sugar” cola appeared very early, it did not hinder the impact of new consumption – in the Chinese market, domestic carbonated drinks led by Yuanqi forest led many “national brands” such as Arctic Ocean and Bingfeng, trying to get a share of the carbonated beverage market. On the other hand, the growth of health demand has also detonated the plant-based beverage market with “environmental protection, health and balanced nutrition” as the selling point. From March to November 2020, the sales volume of Vitasoy milk vegetable protein beverage with original flavor in Jingdong platform has reached 284000 pieces. During the double 11 this year, plant-based drinks surpassed traditional super single products such as Coca Cola and became the most popular “national beverage” among consumers. Facing the changing situation, Coca Cola was not stunned. The first is to continue to expand the category. In June and September 2020, Coca Cola successively launched “TOPO Chico” hard Su sparkling wine and lemon Dou Japanese lemon sparkling wine. In September, Coca Cola cooperated with Mengniu joint venture and keniulai dairy products Co., Ltd. to launch the brand of “xianfeile”, which successfully entered the domestic low alcohol wine and low-temperature milk market. The second is supply chain upgrading. Coca Cola has been on the road of digital management for more than ten years. The standardization of information, indicators and data is extremely important for multinational enterprises. From 1990 to 2019, the compound growth rate of Coca Cola product unit price was only 0.42%. Few brands can achieve such cost control ability. In March last year, Swire Cola announced that it had officially reached a strategic cooperation with Siemens to comprehensively upgrade its supply chain by using the latest digital technology. In January this year, the new production line of Xiamen Swire Coca Cola was officially completed, and the German KHS “digital production line” was introduced. The latest data is that this production line can produce 15 bottles per second and 54000 bottles per hour, 3000 bottles / hour higher than the existing production line, and can produce up to 1296000 bottles of Coca Cola series drinks a day. The new production line formed with the support of digital technology finally gives Coca Cola a stronger voice on the production side. Finally, the marketing offensive. In most post-90s memories, endorsing Coca Cola is an honor for artists and stars. It means that Coca Cola’s brand power far exceeds the star aura, and even the stars are absorbed by Coca Cola’s culture in reverse, which has become a distinctive footnote of that era.
“the essence of business is people.” In the face of today’s generation Z, Coca Cola, like most brands, achieves full marketing coverage in the new century by customizing scenes such as games, sports, music and niche culture, which is highly consistent with the young and dynamic image of consumers. However, unlike other brands, brands with time accumulation often have the opportunity to take one more step.
We often say that a person’s destiny depends not only on personal struggle, but also on the process of history. It is not difficult to find that the underlying logic of Coca Cola’s great success is the globalization of the United States. Of course, this does not negate Coca Cola’s own efforts. In fact, the reason why Coca Cola can succeed in different regions precisely reflects the human pursuit of common experience under cultural differences. People in any region enjoy the fun of life in the same way. Coca Cola can bring them such fun, so it will be popular all over the world. As Guo Sida, a CEO of Coca Cola, said, “the enterprise is neither as beautiful as I tried to tell you, nor as evil as legend. In fact, it is in between the two.”
original link: how was 138 year old Coca Cola made Editor: Xiao Yao, Zhu Yujia; Editor in chief: Shen Shuaibo; Source: jinbubo Finance (ID: jinbubo), reprint has been authorized. Reprint authorization and media business cooperation: Amy (wechat: 13701559246); Foodaily Expo 2022] in line with the original intention of providing the whole value chain and one-stop industrial innovation services for the industry, foodaily Expo 2022 (2022.05.31-06.02, Shanghai) is further upgraded. In addition to the upstream and downstream of the food industry, it also covers and gathers multiple resources such as e-commerce, social media, traffic, channels and capital, aiming to bring you an annual innovation feast. Here, products, content, technology, marketing and other aspects related to food & brand innovation will be presented in the form of “professional exhibition + innovative content + interactive experience”, breaking through and differentiating in the consistent form of industry exhibition.

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