Explore Coca-Cola’s journey from a 19th-century pharmacy drink to a global icon. Learn about key milestones, marketing successes, and its economic impact.
The history of Coca-Cola and its global impact
With over 138 years operating in the soft drink industry, Coca-Cola has managed to capture the interest of consumers from various cultures for centuries; a feat that many other brands have struggled to achieve. Currently, the global giant sells 1.9 billion servings daily across more than 200 countries, and has expanded the Coca-Cola brand through marketing and franchised bottling.
So, how did this global sensation come about?
In 1886, John Pemberton, a pharmacist based in Atlanta, formulated a tonic. It was made of coca leaf and kola nut extract. Initially, the tonic was meant to be a medicinal syrup and was marketed as a cure for common ailments. Today, Coca-Cola is quite different from what it was intended to be, but it has caused a global following, thanks to clever and insightful marketing campaigns. Not to mention the iconic bottle design by the Root Glass Company and Raymond Lowey that has become a recognizable art piece that no other brand can claim.
Global expansion and World War II
In 1919, Ernest Woodruff acquired Coca-Cola and it was at this time it started trading publicly. Furthermore, the company expanded internationally, setting up bottling plants overseas, particularly during World War II, to supply US troops.
In this way Coca-Cola's global presence has broadened. In fact, during the war, Coca-Cola's German branch created Fanta as a result of syrup import restrictions. Fanta is also a popular brand globally.
Over the next few centuries, Coca-Cola expanded their distribution through retail stores, vending machines, restaurants as well as various other food outlets. The market grew substantially and eventually Coca-Cola began to compete against local and international brands.
Today, Coca-Cola employs more than 700, 000 people worldwide, which includes bottling partners. Coca-Cola's business model has proven stable; it has provided consistent dividends, which has made the company particularly attractive to investors.
Product evolution and innovations
Coca-Cola has managed to innovate throughout the years. The company continues to sell and market the original syrup formula, but they are able to meet the changing needs and preferences of the ever-evolving consumer market.
Coca-Cola created a variety of assorted flavors such as Cherry Coke, Vanilla Coke, and Coke Zero Sugar. The company also replaced sugar with high fructose corn syrup as a sweetener. This was done in response to rising sugar prices. In terms of packaging, Coca-Cola has used recyclable materials and limited-edition designer bottles as part of the Coca-Cola sustainability initiatives and goals. Interestingly, Coca-Cola's packaging has raised concerns about plastic waste and water usage. As a result, the company made a significant effort to implement sustainable practices within the organization.
During the eighties, Diet Coke was introduced (the first extension of the Coca-Cola trademark). Diet Coke caters for the health-conscience consumer and promises low-calorie options. Furthermore, the 'New Coke' was launched in 1985, which was marketed as a reformulated version of the original Coke and as a result the company saw a spike in sales. However, Coca-Cola has endured backlash from the general public which led to the return of the original recipe, the Classic.
The iconic contour bottle and brand identity
In 1915, the Root Glass Company designed Coca-Cola's iconic contour-shaped bottle. It is one of the most recognized symbols worldwide. The design was adapted to new materials, from classic glass to plastic and aluminum, still maintaining its iconic look. Interestingly the Coca-Cola logo has a classic script font and red background.
It is speculated that the design was inspired by the cocoa pod which has a unique shape. Moreso, to distinguish Coca-Cola from its competitors, Coca-Cola as well as lookalike or counterfeit products, the bottle shape was patented. In 1923, the bottle shape was refined with the "Christmas bottle" patent which improved stability and the manufacturing operations.
The bottle patent was renewed in 1937 and by 1951 all the patents on the bottle shape had expired. Coca-Cola approached the Patent Office to claim the distinctive contour shape. As a result, the Coca-Cola bottle was granted and recognized as a trademark.
Andy Warhol, a well-known artist, was in search of a shape that would demonstrate or represent mass culture, He decided to draw the iconic Coca-Cola bottle. Warhol created several art works (Pop Art) featuring the Coca-Cola bottle. The Green Coca-Cola and Coca-Cola bottles paintings illustrate consumerism, mass production and as an exploration between popular culture and traditional art. In 2015 the High Museum of Art in Atlanta displayed a number of Warhol's Coca-Cola's pieces as part of their 'The Coca-Cola Bottle: An American Icon At 100' exhibition.
Global cultural and societal impact
Coca-Cola has adapted its marketing strategies to align with local communities. The company has done this mostly through languages and cultural nuances. In this way, Coca-Cola has had a significant impact on various cultures globally.
A good example of this is Coca-Cola's Santa Claus Campaign. This campaign popularized the modern image of Santa. Coca-Cola shapes the image of Santa through various television ads that depicted Santa as a jolly man dressed in red and white. As a result, consumers around the world associated Coca-Cola with Santa and the holiday became ingrained in holiday traditions.
During 1971, the 'I'd like to buy the World a Coke' television ad became popular as it promoted unity and peace through sharing soft drinks amongst communities. In fact, the "Share a Coke" campaign also had a significant impact on society - the campaign which involved personalized coke bottles with individual names had a significant impact on consumer engagement and loyalty.
Coca-Cola's has a long-standing partnership with the Olympic Games that date back to 1928. The company also sponsors the Paralympic Games and various sporting events such as FIFA tournaments and organizations like NASCAR.
Facing challenges and criticism
Even though Coca-Cola has many successes, the company has also faced criticism. There has been a growing concern amongst consumers related to sugar content. As a result, Coca-Cola has diversified its product portfolio to include sugar-free, non-calorie or low sugar beverages. Coca-Cola's product line includes Diet Coke and Coca-Cola Zero.
The company also provides clear nutritional information so that consumers are able to make informed decisions and to support their consumers’ quest to maintain their healthy balanced diets.
Coca-Cola's environmental sustainability
There has also been an uproar from activists and environmental organizations who called out Coca-Cola for its plastic waste and gas emissions (noting its reliance on plastic bottles and aluminum cans). In response, Coca-Cola has invested in sustainability initiatives that aim to reduce packaging waste and carbon emissions. Interestingly, Coca-Cola's website notes that the company aims to use 35% to 40% recycled material in their primary packaging. The company also aims to increase recycled plastic use to 30% to 35% globally by 2035.
The Coca-Cola Company's core objective is to maintain their environmental sustainability strategy. The company launched their 'World Without Waste' initiative, which refers to Coca-Cola's pledge to collect and recycle the equivalent of every can or bottle it sells by 2023.
Notably, Coca-Cola created the 'Plant Bottle' which is made partially from plant-based materials. The bottle shows Coca-Cola' commitment to sustainable packaging and having a positive impact on society and the environment as a whole.
How to buy Coca-Cola stock
Coca-Cola is one of the top ten most recognized brands in the world. For this reason, and may others, it may be worth investing in Coca-Cola stocks.
When an investor owns a Coca-Cola stock, it means that the investor holds a share of ownership in the Coca-Cola Company. Investors are able to claim part of Coca-Cola’s assets and earnings. It is worth noting that investors are entitled to potential dividends and they have voting rights (on specific matters) – they also benefit from stock price appreciation.
To start investing in Coca-Cola stocks, under the ticker symbol ‘KO’, you can open an account with FOREX.com and speculate on the company’s share price via contracts for difference (CFDs).
The Coca-Cola Museum and legacy
The Coca-Cola Museum located in Atlanta at Pemberton Place highlights Coca-Cola's colorful history, an array of artifacts, and advertising memorabilia. The current World of Coca-Cola opened on May 24, 2007, replacing the original location which opened in 1990.
The museum also has a secret formula vault where the formula is rumored to be kept. It also highlights the bottling process from around the world as well as interactive experiences such as tasting more than 100 Coca-Cola beverages.
From a pharmacy tonic to a global phenomenon, Coca-Cola has a tapestry of success and challenges that displays how a simple idea can impact the world in the most significant way. Through strategic marketing, logistical global expansion and the ability to navigate the social political and economic landscape has proven that it will continue to innovate and inspire generations to come.
