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BUSINESS HISTORY PROJECT

REPORT

By Group 13

SEAT NAME ENROLLMENT


NO. NO.
53 ANCHAL 21BSPHH01C0123

SUSTAINING 58
VARSHNEY
KAIRAV BHATT 21BSPHH01C0520
63 MEDHA NAND 21BSPHH01C0658

PRAGMATISM 68
73
AYUSH TIWARI
SIMRAN E.
BOBEE
21BSPHH01C1727
21BSPHH01C1225

THROUGH
TASTE
COCA COLA BUSINESS GROUP
TABLE OF CONTENTS

Sr. Particulars Page Number


No.
1 Executive Summary 2

2 The Beginning 3-5

3 About the Founders 6-7

4 The Growth 8 - 10

5 The Business group and the industry 11 - 17

6 The Business group and its impact on the 18 - 21


society
7 Coping with changes 22 - 24

8 Major Events 25 - 26

9 Timeline of Events 27 - 28

10 Exhibits 29 - 35

11 References 36

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EXECUTIVE SUMMARY

The Coca-Cola Company was first established in 1886 by Dr. John S. Pemberton. Today, the
Coca-Cola Company is the world’s most valuable and most recognized brand. It is the world’s
leading manufacturer in the beverage industry, operating globally in more than 200 countries
with its head office located in Atlanta, USA. It produces more than 300 beverage brands and
over 1.06 billion drinks are consumed per day around the world.

The Coca-Cola Company and its network of bottlers comprise the most sophisticated
and pervasive production and distribution system in the world. More than anything, that system
isdedicated to people working long and hard to sell the products manufactured by the
Company. This unique worldwide system has made The Coca-Cola Company the
world’s premier soft-drink enterprise. From Boston to Beijing, from Montreal to Moscow,
Coca-Cola, more than any other consumer product, has brought pleasure to thirsty consumers
around the globe. For more than 11 years, Coca-Cola has created a special moment of pleasure
for hundreds of millions of people every day.

This report has been prepared with a specific purpose in mind. It outlines the history and current
scenario of the Coca-Cola Company globally and locally.

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THE BEGINNING

The Coca-Cola Company produces Coca-Cola, or Coke, a carbonated soft drink. It was created
in the late 19th century by John Stith Pemberton as a temperance drink and intended as a patent
medicine, and was bought out by businessman Asa Griggs Candler, whose marketing
techniques propelled Coca-Cola to dominance of the worldwide soft-drink market throughout
the 20th century. The name of the drink derives from two of the primary ingredients: coca
leaves and kola nuts (a source of caffeine). Coca-present Cola's formula is a trade secret;
however, a number of purported formulas and attempted recreations have been published. The
drink has generated imitators and created a new category of soft drink: Colas.

The Coca-Cola Model structure concentrate, which is eventually supplied to Coca-Cola bottlers
all across the world.

The bottlers, who've had exclusive territory contracts with the firm, use the concentration in
mix with filtered water and sweetener to create the finished product in cans and bottles. Sugar
is 38 grammes (1.3 oz) in a standard 12-US-fluid-ounce (350 ml) container (usually in the form
of high-fructose corn syrup). Coca-Cola is then sold, marketed, and merchandised in retail
stores, restaurants, and vending machines all over the world by the bottlers. The Coca-Cola
Company also distributes concentrate to large restaurants and foodservice wholesalers for use
in soda fountains.

Under the Coke trademark, the Coca-Cola Company has occasionally introduced alternative
cola beverages. Diet Coke, as well as Caffeine-Free Coca-Cola, Diet Coke Caffeine-Free,
Coca-Cola Zero Sugar, Coca-Cola Cherry, Coca-Cola Vanilla, and special variants with lemon,
lime, and coffee, are the most popular. From July 1985 to 2009, Coca-Cola was marketed as
Coca-Cola Classic to distinguish it from "New Coke." Coca-Cola was the sixth - largest most
valuable brand, according to Interbrand's "best global brand" study from 2020. In 2013, Coke
products were sold in over 200 countries, with people drinking over 1.8 billion servings of the
company's beverages each day. Coca-Cola has rated No. 87 on the Fortune 500 list of the
biggest businesses in the United States by total revenue in 2018.

3|P a ge
Candler decided to form a second business, "The Coca-Cola Company," in 1892 (The current
corporation). When Candler ordered the destruction of the "Coca-Cola Company's" first
records in 1910, it was stated that the action was taken during a relocation to new corporate
headquarters at the time. Candler was obliged to market the beverage he made using the recipe
he possessed under

the names "Yum Yum" and "Koke" after gaining a firmer footing on Coca-Cola in April 1888.
This was all while Charley Pemberton was selling the elixir under the name "Coca-Cola,"
despite the fact that it was a cruder combination, with his father's approval. By the middle of
1888, after both names had failed to catch on for Candler, the Atlanta pharmacist was eager to
establish a firmer legal claim to Coca-Cola, and intended to push his two competitors, Walker
and Dozier, out of the business as well. On August 16, 1888, John Pemberton died
unexpectedly. Asa Candler then made the decision to move quickly in order to gain complete
control of the Coca-Cola company. Asa Candler was most disturbed by Charley Pemberton, an
alcoholic and opium user. After learning of Dr. Pemberton's death, Candler is reported to have
moved fast to buy the sole rights to the term "Coca-Cola" from Pemberton's son Charley.
According to one account, Candler contacted Charley's mother at John Pemberton's burial and
offered her $300 for the name's title. On June 23, 1894, Charley Pemberton was discovered
asleep with a stick of opium at his side. "On August 30, 1888, Asa Candler became the sole
proprietor of Coca-Cola, a fact which was declared on letterheads, invoice blanks, and
advertising text," wrote Charles Howard Candler in his 1950 biography about his father.
Candler’s exclusive control became technically complete with this action on August 30, 1888.
Candler had arranged a complete payment of $1,000 with Margaret Dozier and her brother
Woolfolk Walker, which they both agreed Candler could pay off in a series of notes over a
certain period of time. Candler claimed complete ownership of the Coca-Cola beverage on May
1, 1889, with a total investment of $2,300 in the beverage throughout the years.

Margaret Dozier, who was a co-owner of the original Coca-Cola Company in 1888, claimed in
1914 that her sign on the 1888 Coca-Cola Company bill of sale was falsified. Following that,
an examination of other identical transfer paperwork revealed that John Pemberton's signature
had also been forged, which some sources suggest was prompted by his son Charley. Coca-
Cola Co. was bought by a group of investors for $25 million on September 12, 1919, and
reincorporated in Delaware. The business made a public offering of 500,000 shares for $40

4|P a ge
each. Coca-Cola Enterprises Inc. was established in 1986 when The Coca-Cola Company
amalgamated with two of its bottling companies. On March 12, 1894, the Biedenharn Candy
Company in Vicksburg, Mississippi, bottled Coca-Cola for the first time. Joseph A. Biedenharn
was the owner of the bottling plant. The initial bottles were Hutchinson bottles, which were
quite different from the now-famous 1915 hobble-skirt style.

A few years later, two Chattanooga, Tennessee entrepreneurs, Benjamin F. Thomas and Joseph
B. Whitehead, suggested bottling and were so convincing that Candler signed a one-dollar
contract giving them control of the process. Candler afterwards recognised he had made a
serious error. Candler

never received his dollar, but Chattanooga became the first Coca-Cola bottling plant in 1899.
Candler was satisfied to just sell his company's syrup. The Coca-Cola Company has faced
problems for decades of the ill-defined deal. The choice of the bottlers to subcontract to other
firms, thereby becoming parent bottlers, did not assist legal problems. This contract said that
bottles would be sold for $5 apiece and had no set duration, resulting in Coca-stable Cola's
price from 1886 to 1959.

5|P a ge
ABOUT THE FOUNDER

Pemberton was born in Knoxville, Georgia, on July 8, 1831, and spent his youth in Rome,
Georgia. James C. Pemberton and Martha L. Gant were his parents. The Pembertons were of
British origin; their direct great - Grandfather Phineas Pemberton and his family from
Lancashire came from Liverpool to Maryland on the ship Submission in 1682, eventually
settling in Bucks County, Pennsylvania. In 1687, he built a house too and was William Penn's
main administrator. Stith Pemberton enrolled at the Reform Medical College of Georgia in
Macon, Georgia, and finished with a medical degree in 1850, at the age of 19.

He met Ann Eliza Clifford Lewis of Columbus, Georgia, who was once a student at Wesleyan
College in Macon and was known to her friends as "Cliff." In 1853, they married in Columbus.
Charles Ney Pemberton, their only child, was born in 1854.Couple lived at the Pemberton
House, a historic Victorian house in Columbus that's been listed to the National Register of
Historic Places on September 28, 1971.

During the Battle of Columbus in April 1865, Dr. Pemberton got injured in the chest by a sabre.
He became hooked to the morphine which he was given to help him cope with his agony. In
1866, he began experimenting with medicines that were morphine-free, which was alternatives
to morphine in the hope of curing his addiction. Dr. Tuggle's Compound Syrup of Globe Flower
was his first concoction, and the active component was extracted from the poisonous
buttonbush (Cephalanthus occidentalis). He subsequently began experimenting with coca and
coca wines, finally developing a formula that included kola nut and damiana extracts and
dubbed it Pemberton's French Wine Coca. Pemberton's world-famous beverage first developed
in Columbus, Georgia, and transported to Atlanta, according to Coca-Cola archivist Phil
Mooney. Pemberton's "medicine" was advertised as particularly beneficial for "ladies, and all
those whose sedentary employment causes nervous prostration," in response to public concern
about drug addiction, depression, and alcoholism among war veterans, as well as
"neurasthenia" among "highly-strung" Southern women. When Atlanta and Fulton County
passed temperance laws in 1886, Pemberton was forced to create a non-alcoholic version of
his French Wine Coca. Willis E. Venable, the owner-proprietor of an Atlanta drugstore, helped
Pemberton test and develop the beverage's formulation, which he devised via trial and error.

6|P a ge
Pemberton devised a set of instructions for its preparation with Venable's help. When
attempting to create another glass of the cocktail, he accidentally mixed the basic syrup with
carbonated water. Instead of selling it as a medication, Pemberton opted to market it as a
fountain drink. For the alliterative sound, which was popular among other wine remedies at the
time, Frank Mason Robinson coined the name "Coca-Cola." Despite the fact that the name
alludes to the two major components, The Coca-Cola Company subsequently stated that the
term was "meaningless but imaginative" due to the debate surrounding its cocaine
concentration. The Spencerian lettering on the bottles and advertisements was created by
Robinson's hand. Pemberton made many health claims for his product, touting it as a "valuable
brain tonic" that would cure headaches, relieve exhaustion, and calm nerves, and marketed it
as "delicious, refreshing, pure joy, exhilarating", and "invigorating".

Dr. Pemberton became sick and nearly destitute shortly after Coca-Cola was introduced to the
market. He began selling the rights to his medicine to his Atlanta business associates, sick and
desperate. He was driven to sale so he was still struggling from a costly morphine addiction.
Pemberton had a sense that his recipe would "someday become a national drink," therefore he
tried to keep a piece of the company to pass down to his son. However, Pemberton's son desired
the money, so in 1888, Pemberton and his son sold the remaining half of the patent to Asa
Griggs Candler, an Atlanta pharmacist, for US$1,750, which is equivalent to US$47,230 in
2020 buying power. In August 1888, at the age of 57, John Pemberton died of stomach cancer.
He was also impoverished and addicted to morphine at the time of his death. His remains were
returned to Columbus, Georgia, where he was laid to rest at Linwood Cemetery. His burial
monument bears emblems indicating his service in the Confederate Army and his Freemasonry
membership. His son Charley continued to market his father's medicine, but Charles Pemberton
died six years later from an opium overdose.

7|P a ge
GROWTH OF COCA-COLA COMPANY

Dr. John S. Pemberton, a pharmacist, initially introduced Coca-Cola on May 8, 1886. Because
prohibition legislation had been implemented in Atlanta, Georgia, the alcohol in Pemberton's
previous drink formula for Pemberton's French Wine Coca was deleted. The original recipe
was sold as a patent medication in soda fountains, claiming to be a cure for heartburn, sickness,
and migraines. Frank M. Robinson, Dr. Pemberton's bookkeeper, is tasked with establishing
the copyrighted logo and naming the beverage "Coca-Cola."

Pemberton sold parts of his company to a few other parties before his death in 1888, with most
of the corporation attending a local Atlanta businessman called Asa G. Candler. By 1889,
Candler had purchased the recipe, as well as the name and brand "Coca-Cola." In 1892, he
founded The Coca-Cola Company and began distributing Coca-Cola syrup concentrated to
soda fountains outside of Atlanta. Candler also advertised the beverage by handing out free
drink coupons and stocking pharmacies and soda fountains with Coca-Cola merchandise.

The Coca-Cola Company flourished quickly, expanding into Canada, Panama, Cuba, Puerto
Rico, France, and other nations and US territory within a short period of time. In 1900, there
were only two Coca-Cola bottlers; by 1920, there were over 1,000. The business also needed
to come up with a unique bottle form to ensure that people were obtaining genuine Coca-Cola.
The Root Glass Company of Terre Haute, Indiana, won a competition to design a bottle that
could be seen in the dark, and in 1916, they began producing the renowned Contour Bottle,
which is still Coca-characteristic Cola's form today.

Robert Woodruff, without a doubt, had the greatest impact on The Coca-Cola Company. Robert
became president of the company in 1923, four years after his father Ernest bought it from Asa
Candler. Candler had launched Coca-Cola to the United States, but the new company president
would spend the next 60 years selling the beverage to the rest of the world.
General Dwight D Eisenhower sent Coca-Cola an urgent telegraph in 1943, asking materials
for ten bottling plants. Many individuals had their first taste of Coca-Cola during the war, and
when peace eventually came, the groundwork had been built for Coca-Cola to expand
internationally.

8|P a ge
Pure Drinks, Ltd, opened the first Coca-Cola bottling plant in New Delhi in 1950, marking the
company's entry into India. Due to the adoption of India's Foreign Exchange Act in 1977, the
company left the country. Coca-Cola returned to India by the end of 1992, following the
opening of the Indian economy to foreign investment in 1991. The Coca-Cola Company
officially began presence in India on October 24th, 1993, with the establishment of a
production facility outside of Agra.

The firm sought to expand its product ranges in the 1960s, acquiring The Minute Maid
Corporation and launching Sprite in 1961. The iconic "I'd Like to Buy the World a Coke"
television commercial was first broadcast in 1971. It is still one of Coca-most Cola's popular
and profitable commercials today. Thums Up, Limca, Gold Spot, and Maaza were acquired by
Coca-Cola from Parle Bisleri in 1993.
Coca-Cola advertising, which had always been a significant and exciting aspect of the
company's business, truly took off in the 1970s, reflecting a brand synonymous with fun,
friends, and happy times.
A classic 1971 commercial in which a group of youths from all over the world assembled on a
hilltop in Italy to sing "I'd Like to Buy the World a Coke" exemplified Coke's universal appeal.

Roberto C Goizueta took over as chairman of the board of directors and CEO in 1981, and
embarked on a major makeover of the corporation, which he labelled "intelligent risk taking."
Organizing the multiple US bottling operations into a single public corporation, Coca-Cola
Enterprises Inc., was one of his bold decisions. He also oversaw the launch of Diet Coke, the
first extension of the Coca-Cola brand. Within two years, it had surpassed Coca-Cola as the
world's most popular low-calorie beverage. One of Goizueta's main accomplishments in 1985
was the creation of a new Coca-Cola flavour, the first formulation change in 99 years. People
adored ‘New Coke' in taste testing, but it quickly proved evident that the general population
had a strong emotional connection to the original, and they appealed for a return to the old
recipe. It was dubbed the "worst marketing disaster ever" by critics. Coca-Cola took notice and
reintroduced the actual product as Coca-Cola Classic. Coke quickly gained an advantage over
the competition, which it maintains to this day.
The organization's ultimate involvement with sports was cemented in the 1990s, with sustained
backing of the Olympic Games, FIFA World Cup football, Rugby World Cup, and the National
Basketball Association.

9|P a ge
In 1993, the popular Always Coca-Cola commercial campaign debuted, when the world first
encountered the cuddly Coca-Cola Polar Bear. Coca-Cola goods were offered in what was then
East Germany in 1990, and then returned to India in 1993, opening up new markets.
Coca-Cola also added new beverages to its line-up, including Powerade sports drinks and Oasis
fruit drinks. Through acquisitions, Coca-family Cola's of brands grew to include Limca, Maaza,
and Thums Up in India, Barq's root beer in the United States, Inca Kola in Peru, and Cadbury
Schweppes beverage brands in more than 120 countries.
Coca-Cola India introduced Sprite and Schweppes to the country in 1999. Sprite not only has
established itself as a brand that effectively celebrates its 'cut-thru' standpoint with a genuine,
edgy, rebellious, urban, and forthright style since its creation in 1999, but has also acquired
unquestionable position as a young 'badge' brand. Sprite is now one of India's most popular
and speediest soft drinks, and it has surpassed Thums Up to become one of the country's top
two effervescent brands.
Coca-Cola is still styled the same way. Pemberton only sold nine glasses of Coca-Cola each
day in the first year. The Coca-Cola Company has generated more than 10 billion gallons of
syrup over the course of a century. Asa Griggs Candler, an Atlanta businessman, purchased the
company's rights for roughly $2,300 (about £1,500) over the course of three years, from 1888
to 1891. Candler would go on to become Coca-first Cola's president and the first to give the
company and brand a clear direction.

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THE BUSINESS GROUP AND THE INDUSTRY

Coca-Cola India was the leading soft drink brand in India till 1977 when it was forced to close
down its operation by a socialist government in the drive for self-sufficiency. After 16 years of
absence, coca cola returned to India and witnessed a different culture and economic platform.
During their absence, Parle brothers introduced a new type of cola called THUMS UP. Along
with, they also formulated a lemon flavoured drink, LIMCA, and mango flavoured, MAAZA.
In 1993, coca cola bought the whole Parle Brother operation, in a hope to beat the main
competitor (Pepsi). They presumed that with the tried and tested products of Parle they will be
able to regain their throne in the Indian soft drink market. Pepsi having a 6 year head start
helped revive the demand for global cola but it was not easy for the soft drink giant (coca cola)
to return to India. Pepsi put more focus on the youth of the country in their advertisements but
coca cola tried influencing Indians with the ‘American’ way of life, which turned out to be a
mistake.

Coca-Cola invested heavily in India for the first five years, which got them credit of being one
of the biggest investors in the country; however, their sales figures were not so impressive.
Hence, they had to re-think their market strategies. Coca-Cola learned from Hindustan Lever
that reducing their will result in more turnover, hence leading to profit. They launched an
extensive market research in India. They ascertained that in India 3 As must be applied;
Affordability, Availability and Acceptability. Coca-Cola learnt that they were competing with
local drinks such as “Nimbu Pani”, “Narial Pani”, “Lassi” etc. and reached to a conclusion that
competitive pricing was unavoidable. Since then, they introduced a 200 ml glass bottle for
Rs.5.

Further, they had different advertising campaigns for different regions of the country. In the
southern part, their strategy was to make Bollywood or Tamil stars to endorse their products.
In various regions they tried portraying coca cola products with different regional food
products. One of the most famous ad campaigns in India was ‘Thanda Matlab Coca-Cola’; they
featured the same quote with different regional entities.

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Presently, Coca-Cola is the biggest brand in soft drinks and is way ahead in market share i.e.
60% in Carbonated Soft drinks Segment, 36% in Fruit drinks Segment, 33% in Packaged water
Segment, compared to its arch rival, Pepsi. Diversifying their product range and having a

competitive pricing policy, they have regained their throne. With virtually all the goods and
services required to produce and market Coca-Cola being made in India, the business system
of the Company directly employs approximately 6,000 people, and indirectly creates
employment for more than 125,000 people in related industries through its vast procurement,
supply, and distribution System.
The Indian operations comprises of 50 bottling operations, 25 owned by the Company, with
another 25 being owned by franchisees. That apart, a network of 21 contract packers
manufactures a range of products for the Company.
On the distribution front, 10-tonne trucks – open bay three-wheelers that can navigate the
narrow alleyways of Indian cities – constantly keep our brands available in every nook and
corner of the Country’s remotest areas.

PRODUCTS OF COCA-COLA INDIA

COCA-COLA:
In India Coca-Cola was leading soft drink till 1977 when Government policies necessitated its
departure. Coca-Cola made its return to the country in 1993 and made significant investments
to ensure that the beverage is available to more and more people, even in remote and
inaccessible parts of the nation.
Over the past fourteen years has enthralled consumers in India by connecting with passions of
India – Cricket, movies, music & food. Coca-Cola’s advertising campaigns “Jo Chaho Ho
Jaye” & “Life Ho Toh Aise” were very popular & had entered youths vocabulary. In
2002.Coca-Cola launched its iconic campaign “Thanda Matlab Coca-Cola” which sky rocketed
the brand to make it India’s favourite soft drink brand.

LIMCA:
Limca was introduced in 1971 in India. Limca has remained unchallenged as the No.1 sparkling
drink in the cloudy lemon segment. The success formula is the sharp fizz and lemony bite
combined with the single-minded proposition of the brand as the provider of “Freshness”.

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Limca can cast a tangy refreshing spell on anyone, anywhere. Derived from “Nimbu” + “Jaise”
hence Lime Sa, Limca has lived up to its promises of refreshment and has been the original
thirst choice of millions of customers for over 3 decades.

THUMS UP:
Thums up is a leading sparkling soft drink and most trusted brand in India. Originally
introduced in 1977, Thums up was acquired by The Coca-Cola Company in 1993. Thums up
is known for its strong, fizzy taste and it confident, mature and uniquely masculine attitude.
This brand clearly seeks to separate the men from the boys.

SPRITE:
Sprite a global leader in the lemon lime category is the second largest sparkling beverage brand
in India. Launched in 1999, Sprite with its cut-thru perspective has managed to be a true teen
icon.

FANTA:
Fanta entered the Indian market in the year 1993. Over the years Fanta has occupied a strong
market place and is identifies as “The Fun Catalyst”. Perceived as a fun youth brand, Fanta
stands for its vibrant colour, tempting taste and tingling bubbles that not just uplifts feelings
but also helps free spirit thus encouraging one to indulge in the moment. This positive imagery
is associated with happy, cheerful and special times with friends.

MINUTE MAID PULPY ORANGE:


The history of the Minute Maid brand goes as far back as 1945 when the Florida Food
Corporation developed orange juice powder. The company developed a process that eliminated
80% of the water in the orange juice, forming a frozen concentrate that when reconstitute
created orange juice. They branded it Minute Maid a name connoting the convenience and the
ease of preparation. Minute Maid thus moved from a powdered concentrate to the first ever
orange juice from concentrate.
The launch of Minute Maid in India (started with the south of the country) is aimed to further
extend the leadership of Coca-Cola in India in the juice drink category.

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MAAZA:
Maaza was introduced in late 1970’s. Maaza has today come to symbolise the very spirit of
mangoes. Universally loved for its taste, colour, thickness and wholesome properties, Maaza
is the mango lover’s first choice.

KINLEY:
The importance of water can never be understated, particularly in a nation such as India where
water governs the lives of the millions, be it as a part of everyday ritual or as the monsoon
which gives life to the sub-continent. Kinley water comes with the assurance of safety from the
Coca-Cola Company.

GEORGIA GOLD COFFEE:


Georgia coffee was introduced in India in 2004. The Georgia gold range of Tea and coffee
beverages is the perfect solution for office and restaurant needs. Today Georgia coffee is
available at Quick-Service Restaurants, Airports, Cinemas and in Corporates across all major
metros in India.
HOT BEVERAGES
Espresso, Americano, Cappuccino, Caffe Latte, Mochaccino, Hot Chocolate, Cardamon Tea.

COLD BEVERAGES
Ice Teas, Cold Coffee.

❖ PRODUCT: -
Coca-Cola India has a wide range of products in its product line i.e. Coca-Cola, Fanta, Sprite,
Thums Up, Maaza, Minute Maid and Georgia Gold. Bottled water was another area where
Coca-Cola identified major opportunities. In 2002, Packaged drinking water in India was a Rs
1,000 crore industry and growing by 40% every year. PDW was a low margin – high volume
business, but it was an attractive proposition for bottlers as it increased plant utilization rates.
In this market Coke’s Kinley was pitched against Ramesh Chauhan’s Bisleri and Pepsi’s
Aquafina. The product not only faced intense competition but also was difficult to differentiate.
Coke positioned Kinley as natural water with the tag line “Boond Boond Mein Vishwas” (Trust
in each drop of water).

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In early 1999, the parent company acquired Cadbury Schweppes. As a result, 12 more bottlers
were brought into CCI’s fold. This acquisition added Crush, Canada Dry and Sport Cola to
CCI’s product line. This meant CCI had three orange, clear lime and cola drinks each in its
portfolio.

❖ PRICE: -
Coke learnt with experience that price was a strategic weapon in an emerging market like India.
An increase in value added tax in 1996 had taken the price of the 300ml bottle beyond the reach
of many Indian customers. In 2000, CCI conducted a yearlong experiment in coastal Andhra
Pradesh by introducing a 200ml bottle at Rs 7. The volumes went up by 30% demonstrating
the importance of consumer affordability. So the 200ml pack priced at Rs 5 was rolled out
countrywide in January 2003. The advertising Campaign highlighted the affordability and
Indian image.
To make it affordable, Coke introduced Kinley in 200ml pouches for Re. 1 in selected places
in Ahmadabad and 200ml water cups in Maharashtra, priced at Rs 3 per cup in testing
marketing exercise conducted in mid – 2002. In 2002 Kinley with 35% market share had
become the leader in the retail PDW segment and was contributing 20% of CCI’s revenues.

❖ PLACE: -
Coke pushed down responsibilities from corporate headquarters to the local business units. The
aim was to effectively align CCI's corporate resources, support systems and culture to leverage
the local capabilities. CCI's operations had been divided into North, Central and Southern
regions. Each region had a president at the top, with divisions comprising marketing, finance,
human resources and bottling operations. The heads of the divisions reported to the CEO.
Bottling operations were divided into four companies directed by the bottling head from
headquarters. Under the new plan, CCI shifted to a six region profit center set up where product
customization and packaging, marketing and brand building were taken up locally. A Regional
General Manager (RGM) headed each region with the regional functional heads reporting to
him. All the RGMs reported to VP (Operations, who in turn reported to CEO. The four bottling
operations, with 37 bottling plants, were merged into Hindustan Coca-Cola Beverages
(HCCB). Each of the six regions had on an average six bottling plants. Each plant was headed
by an Area General Manager (AGM) and held profit center responsibility for a business
territory. He reported to the RGM as well as the head of bottling at the headquarters.

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❖ PROMOTION: -
In the initial years, CCI focused on establishing the Coca-Cola brand quickly. The marketing
campaign positioned Coca-Cola as an international brand and did not emphasize local

association. Coke, as a deliberate strategy, decided not to spend heavily on promoting Thums
Up. Indeed, the marketing spend on Thums Up between 1993 and 1996 was almost negligible.
The overall marketing effort was also not focused as CCI changed the head of marketing three
times during the period. Thumps Up remained neglected. Inadequate marketing support for
other Parle brands also led to their declining market shares.

The bottlers taken over by Coke also had problems adjusting to a new work culture. They
argued that CCI's lack of interest in promoting Thumps Up was resulting in falling sales and
asked CCI to take corrective action.

Coke is primarily targeted at young individuals over the age of twenty-five. This can be seen
by Coca-Cola’s advertising campaigns, which are aimed towards the young, by featuring well
known personalities popular to this age group. During 90'ies Coke's promotion efforts did not
seem to be effective. They were focused on mega events like the 1996 Cricket World Cup held
in India. CCI's World Cup Cricket campaign was overshadowed by Pepsi's "Nothing official
about it" campaign. Major analysts were surprised that Thumps Up was totally out of the
picture during such a mega event. In 1998 localization of marketing efforts, CCI signed up
celebrities like Aamir Khan, Aishwarya Rai, and Sunil Gavaskar to promote Coke. Coke also
began efforts to rejuvenate the Parle brands, Limca and Thumps Up. In 1998, India was
declared the fastest growing market within the Coca-Cola system. But things were far from
normal. Attempts at building growth through discounts and PET take home segment were not
very successful because of lack of coordination between the launches and marketing back-up.

To maintain good relationships with bottlers and avoid defections to the other camp, dealers
had been pampered by offering expensive overseas trips. In 2000, Coke wrote off investments
in India, amounting to $400 Mn. The revised value of CCI's assets after the charge was $300
million.

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CCI spent $3.5mn to beef up advertising and distribution for Thumps Up. By 2002, it had
become India's No.2 cola drink after Pepsi. Maaza, the mango drink, was repositioned as a
juice brand and saw a growth of almost 30% in 2001. Since India was a large country of
different tastes and cultures, CCI customized its marketing strategy for different regions. It
promoted the Coke brand in Delhi, Thums Up in Mumbai and Andhra Pradesh, and Fanta in
Tamil Nadu. Coke had plans to launch ‘Rimzim’, a spicy soda drink in North Maharashtra.

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THE BUSINESS GROUP AND IT’S IMPACT ON THE SOCIETY

 CULTURAL IMPACT

ACCOMPLISHMENTS:
• It is reported that Coca-Cola, or "Coke", is the world's second most recognized word
after "okay"
• On July 15, 1985, on the space shuttle Challenger, Coke became the first soft drink to
be consumed in outer space. They produced a special space can for the mission.
• Coca-Cola invented the six pack. They designed it so that customers could take bottles
home with them and store them in their refrigerators, allowing them to drink more
Coke.
• In 2005, Coca-Cola launched the "M5" (Magnificent Five) bottles, limited-edition
aluminium bottles created in collaboration with five different design firms. Coca-Cola
chose to use aluminium bottles on a more permanent basis after the M5 bottles were so
popular. In 2007, two years after the debut, aluminium bottles were introduced in the
United States. "Many consider the first-ever fully shaped aluminium bottle to be Coke's
biggest packaging achievement since the contour PET bottle was introduced in the
1980s," stated Jay Moye, editor-in-chief of Coca-Cola Journey.
• Coca-Cola introduced the PlantBottle in 2009, which was the "first ever entirely
recyclable PET plastic beverage bottle manufactured largely from plants." Coca-Cola
originally debuted the PlantBottle, a new form of PET bottle manufactured from plant
material, in 2009. The bottle is made up of 30% plants. Coca-Cola introduced the new
PlantBottle in 2015, which was made entirely of plant material. Sugarcane plastic is the
"plant material." They stated that their goal was to transition to the PlantBottle
completely by 2020.

CHRISTMAS CELEBRATIONS
The "Holidays are coming!" advertisement features a train of red delivery trucks, each
emblazoned with the Coca-Cola logo and decked out in Christmas lights, driving
throughout the country.

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In 2001, the Coca-Cola business revamped its advertising campaigns so that advertising was
generated locally in each country rather than centrally at the firm's headquarters in Atlanta,
Georgia, and the advertisement was retired. The promotion was revived in 2007 when
numerous customers called the company's information centre to claim they thought it was the
start of Christmas. The commercial was designed by the Doner advertising firm in the United
States and has been part of the company's global advertising campaign for several years.

The brand is also credited with helping to shape the modern-day image of Santa Claus. Coca-
Cola ran a commercial in 1931 featuring Santa Claus dressed in a white and red costume. "Santa
was shown as everything from a tall gaunt guy to a spooky-looking elf dressed in various colors
such as blue or green," they stated. The first time Santa was genuinely represented as "jolly"
was in this benign version. Haddon Sundblom, an illustrator, created the artwork, and his
original oil paintings of this depiction of Santa were utilized in Coca-Cola advertising around
the country. Since then, Santa has been a vital component of Coca-Cola.

However, Coca-Cola was not the first corporation to employ Santa in their advertisements;
White Rock Beverages did as well, albeit their campaign did not have the same impact as Coca-
Cola's. Since Coca-ad Cola's in 1931, the entire globe associates Santa with a white and red
outfit, which are also the company's brand colors.

 SOCIETAL IMPACT
The Coca-Cola Company participates in a variety of programs aimed at improving society.
The Coca-Cola Foundation, which was established in 1984, helps the firm achieve this goal.
The foundation is dedicated to creating and preserving dynamic, long-term communities in
order to make society a better place for people to live. Job opportunities are developed in
areas where Coke has a presence, allowing locals to afford a daily bread. The foundation
explores into a variety of areas that are always tough for local residents to navigate.

These areas include, but are not limited to, providing clean and sufficient water to the
community, ensuring that health standards are followed, enforcing a community recycling
habit to lessen the consequences of litter, and ensuring that impoverished students complete
their education without having to drop out. All of them are worthwhile activities and
programs carried out by the foundation and supported by Coca-Cola.

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With the recognition that education is a critical component of socioeconomic development,
the Coca-Cola Company has made significant investments in this area to help students
achieve their goals. The foundation's major goal in the community is to reduce school
dropout rates, improve reading and encourage literacy in the community, provide
scholarships, and create educational infrastructure. This Coca-Cola scholarship programme,
which began in 1986, is the most well-known and regarded in the United States. More than
4250 scholars have benefited from the initiative since its inception, demonstrating that the
$38 million set aside to fund it was well spent.

In the event of a disaster in any part of the world, the foundation ensures that relief and
recovery missions are carried out to ensure that no lives are lost. Bottled water, distribution
vans, and volunteer services are all provided by the company. During the 2010 Haiti
earthquake, Coca-Cola gave $2 million to the Red Cross to help with the recovery mission, as
well as providing water and other Coca-Cola products to those in need. This catastrophe
relief and recovery programme was set up to assist all individuals who required immediate
assistance. The Coca-Cola Company established the Haiti Hope Project, a public-private
partnership aimed at establishing a long-term mango industry in Haiti.

 NEGATIVE SOCIETAL IMPACTS

ETHICAL ISSUE IN INDIA:


In the early 1970s, Coca-Cola was the first multinational soft drink brand to enter the Indian
market. Coca-Cola was India's dominant brand until 1977, when it was forced to leave due to
the Foreign Exchange Regulation Act (FERA). They did not return until 1993. Coca-Cola
faced numerous challenges in terms of product quality, resource exploitation, and market
exploitation, as well as price-quality trade-offs. Coca-Cola was sued by people all over India
for misusing water resources. Coca-Cola had a negative impact on both the quality and
quantity of groundwater. Coca-Cola was accused of polluting neighboring fresh water,
ground water, and soil with waste extracts; as a result, farmers are experiencing water
scarcity.

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 HEALTH CONCERNS:
Coca-Cola has been fighting consumer views that their soft drinks cause obesity for years. In
Australia, Coca-Cola ran a "Motherhood and Myth-Busting" campaign in 2008, seeking to
persuade the public that a soda-based diet was healthy for kids. Following complaints from
the Obesity Policy Coalition, the Parents' Jury, and the Australian Dental Association, the
Australian Competition and Consumer Commission quickly took Coca-Cola to court. As a
result, the business was obliged to run fresh ads in a number of Australian newspapers in
2009, clarifying facts such as the caffeine content of Diet Coke.

The Centre for Science in the Public Interest sued Coca-Cola the following year for false
marketing on the substance of its VitaminWater. Despite the fact that the beverage is touted
as healthy, it contains a lot of sugar. Coca-Cola attempted to have the action dismissed, but
after concluding that VitaminWater lacked the nutritional standards to make some health
claims, a judge decided that it may proceed.

Coca-Cola launched a new advertising campaign in 2013 to portray the obesity pandemic as a
complicated problem that requires collaboration from businesses, governments, and local
communities to solve. One of the campaign's ads, dubbed "Coming Together," reminds
viewers that lowering caloric intake, a key component in weight loss, may necessitate more
than merely avoiding Coke products. Programs to encourage more physical exercise in
schools and communities are also part of the campaign. Another potential stumbling block for
Coca-Cola is concerns that certain components in its products cause cancer.

The authors of a 2018 study comprising 2,019 people concluded that they couldn't even rule
out diet soda use as a diabetes risk factor. They say their findings back up the theory that
sugar-sweetened beverages like cola contribute to the development of this chronic condition.

In a 2016 study on rats, researchers discovered that rats who drank Coca-Cola had lower
kidney and liver function than rats who did not drink soda.

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COPING WITH CHANGES

The Coca-Cola Company took arguably the largest risk in consumer goods history when it
announced it was changing the recipe for the world's most popular soft drink, causing
unprecedented public concern. For 15 years, The Coca-Cola Company's market share lead over
its primary competition, with its flagship product, had been slowly eroding. The cola category
as a whole was sluggish. Coca-popularity Cola's was dwindling, as was customer awareness.
Of course, that changed in the summer of 1985, when consumer uproar about "new Coke" gave
way to consumer love for Coca-Cola classic. Coca-famed Cola's secret formula was modified,
and a formula favoured by roughly 200,000 consumers was adopted. Of course, these tests
didn't reveal the emotional attachment people had to their Coca-Cola, which they didn't want
anyone, including The Coca-Cola Company, to compromise with. Some customers feared
when the new flavour was announced, stockpiling cases of Coke in their basements happened.
In San Antonio, Texas, a man drove to a local bottler and purchased $1,000 in Coca-Cola.
Some folks became depressed by the loss of their beloved soft drink. Suddenly, everyone was
talking about Coca-Cola, and everyone was discovering how significant it was in their lives.
Protest groups sprang up all throughout the country, like the Society for the Preservation of the
Real Thing and the Old Cola Drinkers of America. Songs were written to pay homage to a
bygone era. Protesters held posters reading "We want the genuine thing" and "Our children
will never know refreshment" at a Coca-Cola event in downtown Atlanta in May. When
"classic" Coca-Cola was reintroduced in July 1985, those stockpiling as many as 900 bottles in
their basements were able to end their self-imposed rationing and drink the product as they
always had – whenever they wanted.

The events of 1985 indelibly altered the soft-drink industry's dynamics and The Coca-Cola
Company's success, as the Coca-Cola brand rose to new heights and customers remembered
their love for Coca-Cola.

During WWII, Coca-Cola remained persistent. By providing free drinks to the soldiers, the
corporation positioned itself as a representation of the US war effort while also increasing
product recognition in the countries occupied by allied forces. In the process, it established 64

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new manufacturing facilities around the world, speeding up the company's post-war worldwide
expansion.

Coca-Cola Company has experienced many changes in the business climate in recent years.
Coca-Cola created a rival with an American sweet test product, but it was a commercial
disaster, so the company changed course and went back to its previous formula. As people
become more health-conscious, companies introduce new products to meet their needs, such
as diet coke and coca cola zero. The group bought a bottling firm in South Korea, which allows
it to sell its products in retail stores and makes it easier to enter Japan, Malaysia, and China.

Furthermore, China is now the world's greatest coke user. Coca-coke Cola's output in China
was 3.6 billion tonnes in 2007, with 15.3 million tonnes exported. Coke production in China
reached 360 million tonnes by the end of 2007. In addition, between 2008 and 2009, the
corporation opened a new factory with a capacity of 20 million tonnes. The goal of China's
coke industry is to export significant quantities of the product to countries like India. This
report describes the growth and beneficial changes in the environment of China's coke12s
sector.

Economic study examines the impact of the national and global economies, as well as economic
slowdowns. Economic elements are those that have an impact on a company's manufacturing
and supply. If the economy isn't doing well at the time, Coke's decision to raise its price will
have a significant negative influence on the company's production. Outside of the United
States, the non-alcoholic beverage business has a large market. Soft drink company
performance has improved in important foreign markets such as Brazil, Germany, and Japan.
These markets are critical to the non-alcoholic industry over the years.

In a country such as Pakistan, the unemployment rate is extremely high. Coca-Cola employs
1800 workers in Pakistan. The business has invested $130 million in Pakistan during the last
two years. If the country's economic indicators are favourable, the influence is successful;
otherwise, it is negative.
As people respond to stay-at-home routines and make lesser, faster stock-up excursions, Coca-
Cola teams throughout the world are engaging with supermarket customers to alter supply

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chains and prioritise delivery and promotion of core brands and SKUs like multipacks. They're
doing everything they can to keep the shopper's interest.

Coca-Cola prioritized energy efficiency, environmental responsibility, and climate protection.


The company has made progress in these areas, but there is still much work to be done. In 2007,
the corporation used 300 billion litres of water to make beverages. Coca-Cola is a major buyer
of fructose corn syrup, sugar, coffee, and citrus around the world. It is the country's biggest
consumer of bottles and cans. Simultaneously, the corporation stated its intention to reconnect
to environment and community. The amount of water utilised to make a beverage is equivalent
to the amount of water used by the company. The company now has three goals. 1. Recycle the
water so that it can be returned to the environment in a safe manner. 2. Reduce the amount of
water used in the production process. 3. Refill community water supplies through a worldwide
number of local collaborations.
Fashionable garments produced from recycled polyethylene terephthalate bottles were also
purchased by the company.

In reaction to the COVID-19 epidemic, the Coca-Cola Company is prioritizing core brands and
modifying its e-commerce operations.

While the corporation had a strong start to 2020, its net revenues fell 1% to $8.6 billion in the
first quarter, according to the corporation. Coca-Cola witnessed significant changes in
customer buying patterns in March as the coronavirus spread, including major losses in away-
from-home channels. Early inventory loading was observed in select countries, followed by
more normalised demand levels and a rapid surge in e-commerce, according to the company's
at-home channels. Coca-Cola has seen a worldwide volume reduction of around 25% since the
beginning of April, with almost all of it occurring from away-from-home channels.

Coca-Cola is mandating most office-based staff to work online as it continues to continuously


evaluate cleaning and sanitation practices at its facilities. It is also supporting COVID-19 relief
efforts around the world, pledging more than $100 million to these programmes, emergency
services, and recovery assistance for markets severely hit by the pandemic.

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MAJOR EVENTS

The company produce Coca-Cola, invented by pharmacist John Stith Pemberton in1886.in
1889 the formula and brand were sold for $2300 to Asa Candler, who started The Coca-Cola
in Atlanta in 1892.by 1895 Coca-Cola was being sold in every state in the union.in 1919 the
company was sold to Ernest woodruff Trust company of Georgia. Candler was one of the first
businessman to use Coca-Cola’s first ad read “Coca-Cola. Delicious! Refreshing! Invigorating!
By 1984 Coca-Cola’s market share dropped due to new competitor namely Pepsi.

FIRST BOTTLE
Coca cola was put in bottles in 1894 by Joseph Biedenharn, a Mississippi businessman. He sent
12 bottles to Candler. Candler distributed free sample of Coca-Cola to make people aware of
the brand and later charged price for the same.

CANDLER LOSES COCA-COLA


Candler didn’t realize that Coca-Cola would become bottled and portable for people to carry
anywhere. He sold the exclusive right of bottling to Benjamin and Joseph

DESIGNING THE BOTTLE


Root glass company of Tere Hautte, Indiana won the contest to design a bottle that could be
recognised in dark. In 1916 he started to manufacture the famous contour bottle, which remain
as the signature shape of Coca-Cola today.

COCA COLA AND THE OLYMPICS


Robert Woodruff, who was a marketing genius, saw the opportunity everywhere. He introduced
the Coca-Cola to Olympic in 1928 for first time hence the brand travelled with team from
U.S.A to Amsterdam.

WORLD WAR 2 AND COCA-COLA


In 1941, America entered in World War 2 and thousands of US citizen were sent overseas.
Showing support for the brave men and women, the coca cola president Woodruff ordered that

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“Every man in the uniform get a bottle of Coca-Cola for five cent, whatever it cost the
company. It helps in creating positive image and popularising the brand in global market.

NEW TASTE
One of the Goizueta’s initiative in 1985 was that he developed a new taste for the Coca-Cola
which cover wide range of consumer.

COUNTING MORE DRINKS


In 2008, Coca-Cola counted more than 160 low-calorie and no-calorie drinks that were in the
company`s range which include Coke Zero and Powerade Zero

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TIMELINE OF EVENTS

1886: Pharmacist Dr. John Stith Pemberton concocts Coca-Cola, a mixture of sugar, water,

caffeine, and extracts of the coca leaf and the kola nut.

1891: Asa G. Candler, a druggist, gains complete control of Pemberton's enterprise.

1892: Candler incorporates The Coca-Cola Company.

1899: The first bottling franchise is established.

1905: Coca-Cola syrup is completely free of cocaine.

1916: The unique, contour-shaped Coke bottle is introduced.

1919: Ernest Woodruff and an investor group buy the company for $25 million; the company

goes public at $40 per share.

1923: Robert Winship Woodruff becomes President of the firm.

1943: Coca-Cola plants are set up near fighting fronts in North Africa and Europe, helping

boost American GI spirits and introduce Coke to the world market.

1960: The Minute Maid Corporation is acquired.

1961: Sprite makes its debut.

1981: Roberto Goizueta becomes Chairman.

1982: Columbia Pictures is acquired for $750 million; Diet Coke is introduced to the market.

1985: Coca-Cola is reformulated; New Coke is rejected by consumers, and the company

brings back the original formula, calling it Coca-Cola Classic.

1987: Company sells its entertainment business to Tri-Star Pictures.

1990: Sales surpass the $10 billion mark for the first time.

1997: Douglas Ivester succeeds Goizueta as chairman and CEO.

1999: Company acquires the rights to sell Schweppes, Canada Dry, Dr Pepper, and Crush

brands in 157 countries, not including the United States, Canada, Mexico, and most of Europe.

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2000: New CEO Douglas N. Daft launches major restructuring involving job cuts of 5,200.

2002: Company launches Vanilla Coke.

2004: E. Neville Isdell is named chairman and CEO.

2006: “The Coke side of life” Campaign

2017: James Quincy becomes the CEO.

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EXHIBITS

Pharmacy, later
renamed Jacobs Drug Store, at
the corner of Peachtree and
Marietta streets in downtown
Atlanta, circa 1920.

John Stith Pemberton Asa Griggs Candler


(July 8, 1831 – August 6, 1888) (December 30, 1851 – March 12, 1929)

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Robert W. Woodruff
(December 06, 1889 – March 07, 1985)

Evolution of Coca-Cola bottles

Evolution of Coca-Cola logo

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Advertisements in the Early days

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Coca-Cola advertisements
during World War 2

Products of Coca-Cola
Company

Vending Machines

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Introducing the Six Pack

M5 – Magnificent Five
Aluminium Bottles

Coca-Cola’s Christmas
advertisements showing
Santa Claus

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Coca-Cola’s Festive trucks
decorated with lights.

Coca-Cola
advertisements in India

Coca-Cola
Foundation’s Haiti
Hope Project

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Protests in India against
Coca-Cola polluting the
water.

Coca-Cola
advertisements during
COVID-19 Pandemic

Coca-Cola
advertisements during
Olympic Games

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REFERENCES

https://www.thestreet.com/lifestyle/food-drink/history-of-cola-cola
https://www.preceden.com/timelines/335001-coca-cola-history
https://www.coca-cola.co.uk/our-business/history/1890s
https://market.us/statistics/food-and-beverage-companies/coca-cola-company/
https://en.wikipedia.org/wiki/The_Coca-Cola_Company
https://en.wikipedia.org/wiki/Coca-Cola
https://www.coca-colaindia.com/

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