coca-cola spend endless billions on advertising every year but will never once try to sell you on their product
they sell an idea happiness harmony togetherness but some would say it's a distraction
from the disturbing truth there are a lot of serious accusations against the company that they've caused disease
droughts exploitation and much much worse so buckle up we're going on a journey through coke's incredible
history spanning three different centuries we'll be examining how coca-cola really became one of the most
recognized brands ever and at what cost because one thing is for sure you don't build an empire
selling sugar water by telling people the truth
Chapter 1: How Coca-Cola REALLY Began
king-size coca-cola gives you that refreshing new feeling there's nothing
like ice-cold coca-cola back in the 1880s there was a bit of a
backlash against doctors and people started using home remedies instead and a bunch of deceitful entrepreneurs
pounced on this opportunity and started creating potions and elixirs that they claimed had a wide variety of medical
benefits the truth was that they were mostly dangerous ineffective concoctions of
various different chemicals but with no regulation they could claim whatever health benefits they wanted so
business was booming one popular patent medicine was called vin mariani which contained a mix of wine and cocaine that
supposedly cured almost any ailment or sickness whatsoever as long as you drank three glasses every day and one person
who absolutely loved this drink was a man named john pemberton a war veteran who had been severely injured in battle
the doctors had actually thought he was gonna die and dosed him up a morphine to try and mask the pain for his final few
hours but john somehow survived however he did develop a serious morphine
addiction which is why when he discovered vim mariani he became hooked on the drink he thought it was helping
him overcome his morphine addiction and of course after drinking it he really did feel better but that's not because
it was medicinal it's because it contained wine and cocaine but since pemberton loved the drink and
he was a chemist himself he decided to create his own version and in 1884 he launched french wine coker which was
basically a ripoff of vin mariani with a couple more ingredients added and yeah this knock-off drink would soon become
coca-cola now to be fair to pemberton he wasn't some snake or salesman trying to deliberately rip people off he really
believed in his products however pemberton's timing was terrible just a year later prohibition hits with many
states banning alcohol pimberton had to take the wine out of his drink and replace it with carbonated water but
this left the drink tasting very bitter so he added a huge amount of sugar to counteract that
now that the wine was removed he could continue selling french wine coker but they needed a new name luckily
pemberton's bookkeeper frank robinson came up with a catchy sounding suggestion coca-cola now the company
would later claim that the name doesn't mean anything and it's just a nice sounding alliteration of course this
isn't true the name was a reference to the drink's two main ingredients the colonel which contained caffeine and the
coca leaf which contained cocaine to this day coca-cola deny their formula has ever contained cocaine despite the
fact it's extremely well documented it contained the coca leaf which contains cocaine eventually by 1929 they would
find a way to remove all the active cocaine from the coca leaves once it became clear that cocaine wasn't quite
the magical medicine they'd first thought but back in the 1880s nobody was worried
about the cocaine in the drink so now that the wine had been removed coca-cola could continue being sold the only
problem is not many people were buying it pemberton was still trying to sell people on the medicinal aspect of the
drink early ads for coca-cola described it as a harmless wonderful brain tonic that relieves headaches and upset
stomachs but sales were slow because there were countless other patent medicines offering the same thing so
cope didn't really stand out meanwhile pemberton was becoming increasingly ill his pain was worsening his addiction
growing stronger and by 1888 john pimperton was dead
the tragedy is he had absolutely no idea that his drink would soon become one of the most well-known drinks on the entire
planets [Music]
Chapter 2: The Spectacular Rise of Coca-Cola
right before pemberton died he sold the company for two thousand three hundred dollars to an ambitious workaholic named
asa candler candler then began buying out any outstanding shares owned by other people so he could have the
company fully under his control later investigations would find that canelo may not have really bought all those
shares as some of the documents contained forged signatures we may never know exactly what happened because
kendall even had the early records of the company burned most likely to cover his tracks
but all that was irrelevant because by the 1890s asa candler was fully in charge of coca-cola but remember the
drink wasn't actually that popular at first so candler started filling the town with coke-branded banners
billboards and placards they even painted the logo on barnes and basically plastered the coca-cola logo on anything
they could so people started seeing the logo everywhere they went but one of coke's first strokes of marketing genius
was to contact every pharmacy in the area get a list of their top customers and send them a free coupon for
coca-cola the logic was that by giving people a free trial they'd become customers for life especially since the
drink contained several addictive chemicals however it soon became clear that advertising coca-cola as a medicine
was the wrong strategy rather than just market to people who were ill they could market it to everyone by simply positioning it as a
tasty relaxing drink that anyone could enjoy this had the added benefit of disassociating coca-cola from the patent
medicine industry which would soon face a lot of scrutiny once people realized that most of their claims were complete
lies coca-cola's mass marketing strategy was a huge hit as the sales started to
grow rapidly candler reinvested more and more money into advertising and even started paying movie stars and athletes
to endorse the drink is that coca-cola yes sir so much of coke success has been
about creating such a positive wholesome image in people's minds of what the drink represents and what better way to
do that than pay popular celebrities to recommend the drink they even started heavily featuring santa claus in their
ads at christmas always holding a coke to make the connection in young kids minds between coca-cola and the joy of
christmas of course none of this marketing may sound particularly special but at the
time it was coca-cola pioneered many marketing strategies that soon became
commonplace for example sex sells may be an advertising cliche these days but very
few mainstream companies exploited this as much as coke did with their use of coca-cola girls attractive women who
always had a coke in hand coke even created a statistical department to analyze car traffic and movement in
supermarkets so they could determine the most effective places to put their ads and as new technology was introduced
from radios to tv coke was always ready to throw money into advertising on these
new mediums to ensure everyone everywhere knew about its products initially though coke was mostly sold in
soda fountains this allowed coke to save huge amounts of money because they simply had to distribute the syrup and
then it would be mixed with carbonated water by whoever was selling it so the shipping and distribution cost
for coke were much lower but then one day two lawyers named benjamin and joseph came to ace a
candler with an idea let's bottle it candler thought this was a really dumb idea bottling was very expensive and
complicated but benjamin and joseph said they would take on all the cost and risk themselves
so canda agreed and signed a contract granting them full bottling rights for coca-cola for just a nominal fee of one
dollar candler figured he had nothing to lose in the unlikely scenario that this bottling idea actually went well it
simply meant he would sell lots more of the coke syrup of course as we now know bottled coke
was an unimaginably huge success customers loved bottle coke so at first
this was great for candler it meant the bottlers were buying loads and loads of coke syrup from him and this was a great revenue stream for the business but
there was one very major problem because canada hadn't believed bottling coke would work he'd put almost no thought
into the contract he signed so there was no time frame set on the deal and no mention about changing the
price if the cost to produce the coke syrup increased what this meant is that asa candler had
given the bottlers a never-ending contract to supply them with coke syrup at the same low price no matter how much
the cost of the raw ingredients went up this would lead to multiple lawsuits between coke and its bottlers over the
next few decades the coca-cola company would end up paying countless millions of dollars to buy back some of the
rights that candler had sold away for just one dollar but back in the early 1900s this wasn't a worry for candler
because sales of coca-cola were higher than ever and growing every year of course this wasn't really because of the
product there were countless very similar drinks out there and remember coca-cola was a knock off of another drink anyway the reason for the rapid
growth was marketing every single year coca-cola spent more and more money on advertising and every single year sales
of coca-cola grew however arguably coca-cola's biggest successes of all
would come from a pretty surprising source
Chapter 3: The Lucrative Business of War
once the second world war broke out it was announced sugar would be rationed however coca-cola made the absurd claim
that they should be exempt from the sugar rationing because coke was an essential wartime product
and even more absurdly the government agreed this was largely because coca-cola spent huge amounts of money on
lobbying the government coke funded countless studies to try and convince the government of koch's benefits and
that they claim that coke would keep up morale and provide an energy boost for soldiers eventually the us government
agreed to appoint a coca-cola executive onto the rationing board who then gave coca-cola an exemption from sugar
rationing whilst every other company had to reduce the quantities of sugar they used during the war and coca-cola didn't
stop there coke's president publicly promised we will see that every man in uniform gets a bottle of coca-cola for
five cents wherever he is and whatever it costs our company now by selling at this low price
coca-cola would lose money on each drink sold and yet this decision was absolutely
genius firstly in the eyes of the public and especially soldiers it created a strong
connection between coke and the war effort and helped coke gain huge public support and goodwill in the minds of
millions of americans coke and patriotism became connected coke seized upon this opportunity to run new wartime
ads showing soldiers holding coke bottles but not just that behind the scenes coke had made a deal with the
government about getting money to help them set up coca-cola bottling plants overseas they claimed it would spread american
influence and boost soldier morale but what it really meant is the taxpayer was helping to fund coke's international
expansion during the war 64 coke bottling plants were set up around the world on different continents mostly
funded by the governments in fact the technicians who installed coca-cola plants during the war were deemed just
as vital as the people who were fixing tanks and planes and because coke was now accessible to soldiers wherever they
were in the world they started sharing the drink with the locals helping coke's expansion into even more new countries
the soldiers were so thankful for coke sending them a taste of home during the hell of war that they became the drink's
biggest advocates the u.s military basically became a coca-cola sales force introducing new
people to coke wherever they went so what the war had a devastating impact on most companies and people coca-cola
were expanding faster than ever all over the globe as of today there's only two countries in the world that don't sell
coke cuba and north korea and the deals coke made during the war were largely
responsible for coke's rapid global expansion across the planets now there's just one tiny little problem
with this heartwarming idea of coca-cola as a patriotic company looking out for american soldiers
which is that during the war the coca-cola company was supplying nazi germany with coke as well
yep whilst in the u.s coke were preaching about supporting the troops in germany they were busy trying to
disassociate themselves from anything american and often showed the coke logo alongside swastikas coke was even
distributed at hitler youth rallies and advertised on nazi educational pamphlets coca-cola was literally playing both
sides after all germany was a huge market for them however as the war progressed restrictions were introduced
that cut off the supply for many goods to germany for most multinational corporations this meant they couldn't
sell their products to germans anymore but the head of coke's biggest bottling operation in germany a man named max
kaif had an idea to counteract these restrictions he got local chemists to create a new drink that was vaguely
similar to coke but rather than being made with the coke syrup which could no longer be imported it was instead made
from the leftover scraps from other food produce like apple fiber this new drink would later be named fanta
and since so many other drinks had been banned because of the war fanta became a huge hit in nazi germany some sources
even suggest that kaifu's forced labour from concentration camps to help produce it what we know for sure is that at the
end of the war the profits of this new fanta drink all went back to the coca-cola headquarters and max was given
a promotion in the coca-cola company and by 1955 coke was selling fanta in many
different countries around the world of course like so much of their history hope tried to distance themselves from
what really happened however coca-cola would never have been
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Chapter 4: Coca-Cola's Secrets
coke will try to tell you that their biggest secret is the drink secret formula which is hidden in a high security vault for dramatic effect but
the formula isn't that secret it's on wikipedia of course coca-cola's success has very little to do with the formula
you could create a clone product but you're never going to be able to compete with them let's look at why one day a
teacher at a new school suggested to the headmaster they had some healthier choices to the school vending machines
like some fruit juices she was horrified when she was told it wouldn't be possible because the school had an
exclusive contract with coca-cola coke paid the score three thousand dollars a year or around one dollar per student in
order to dictate which product the school sold it turns out contracts like this had been struck with countless
different schools as part of coke's cradle to grave strategy basically the best way to make someone a coke customer
for life is to ensure they drink it from the earliest age possible one coke marketing chief pointed out that it's
far easier to get them at a young vulnerable age to become a cult customer for life than try to convert them later
on when they're older in some of the contracts the school could even earn additional money by selling more coca-cola to its kids and since many
schools were underfunded and in desperate need of money they would shield poke's products to their children
this is just one of many ways kokov managed to circumvent the rules about advertising to children another way is
that coke has produced countless collectors items including barbie dolls playing cards board games delivery
trucks and other toys that they claim are for adults then of course there's all the christmas
ads deliberately tying santa and coca-cola together in the minds of impressionable children in 1982 coke
even bought columbia pictures so they could easily integrate product placement into their films although they later
sold the film studio and decided just to pay other companies for coke product placement instead but product placement
in family films is a clever loophole that allows them to circumvent rules about targeting children and it works
research has shown that even for babies coke is one of the most recognized brands in the world
but back in the 80s a problem was emerging for coke more and more data was piling up about the negative health
effects coke was having there'd always been concerns about coke rotting your teeth but new data was showing the
serious effects coke was having on obesity diabetes and a string of other health issues for example one study of
children found that even just one extra sugary soft drink a day gave them a 60 greater chance of becoming overweight
another showed that if babies are exposed to a high intake of sugar they will be conditioned to depend on sugar for the rest of their lives
for a brand that is built upon its image of wholesomeness it was a major setback being so directly connected to such a
wide variety of health problems especially since coke was actively pursuing a strategy of offering bigger
and bigger portion sizes of its drink it also didn't help that the drink contained caffeine coca-cola claimed
that this was purely for taste purposes but in blind taste tests people couldn't tell the difference with a
non-caffeinated version this left some people wondering why coke continued to add this addictive caffeine to a drink
that's being sold so much to kids however the soda industry had come to a similar realization that the tobacco
industry had come to it's easier to cast doubt on the science than debate on policies because you can always just
claim that more research is needed so behind the scenes coke was pouring hundreds of thousands of dollars into
studies to cast doubts on the connection between soft drinks and obesity and diabetes
unsurprisingly the studies paid for by coke generally claimed that coke wasn't causing many health problems however
they conveniently didn't mention who'd funded those studies coke also spent endless millions of
dollars on lobbying state officials against sugar taxes and stronger dietary guidelines they reportedly made deals
behind closed doors about donating to certain politicians campaigns in favor of special treatment for coke they also
continue to throw billions of dollars into sponsoring athletes and major sporting events to try and create the
illusion of a connection between great athletic performance and coca-cola
however coke good sense they could only stall for so long before the science became too undeniable to dispute so they
began expanding into other drinks for example a bottled water brand called dizzani however this immediately
backfired when it launched in the uk as it was quickly discovered that this expensive bottled water had essentially
just come out of a local tap now coke tried to defend itself by explaining they run the water through some kind of
purification process but this just made things worse because it turns out they'd accidentally added a
bad batch of minerals that contaminated the water as a result of half a million bottles in circulation had to be
withdrawn from shops over safety fears in other words coke's attempt to produce a healthy drink and ended up with them
being accused of selling expensive contaminated tap water however this wasn't the worst of coke's
contamination problems in 1999 in belgium children started becoming ill after drinking coca-cola eventually
leading to the recall of all coke products france also reported more than 100 people sick from bad coke and
temporarily banned their products as well the company was very slow to respond to any of these issues and was
accused of not taking the problem seriously enough then in india coke was accused of contaminating the groundwater with
wastewater koch actually admitted they had a wastewater issue but insisted they fixed the problem however later
independent tests still found traces of toxic sludge produced at coca-cola's indian plants which reportedly has made
the land barren killed local animals that drank it and destroyed the livelihoods of local farmers the center
for science and environment in new delhi also announced it found pesticide in both coke and pepsi that have consumed
over a long enough period could cause cancer birth defects and severe disruption to the immune system one
woman from a local village told journalists before this company came our lives were comfortable and beautiful
after the company came within six months the taste of the water changed another said when we bathe our heads swim it
pains and we scratch all over and coke's environmental record continued to get worse you see the company also runs
bottling plants in several drought-plagued areas and officials have blamed coke for a dramatic decline in
available water this problem was particularly bad in parts of mexico because between 2000 and 2006 mexico's
president was a man who'd formally been the head of coca-cola mexico the president started giving his former
company favorable treatment after getting elected and during his presidency he gave coca-cola 27 water
concessions which many claim allowed coke to pollute water and even steel water owned by indigenous people one
local resident claimed there used to be a lot of water here now there is a scarcity they are not paying anything
and they are just taking our water away during this presidency coke sales increased 50
and became the most popular drink in the country critics claim this is yet another example of coke benefiting from
shady deals with politicians of course coca-cola has always had to
acquire vast quantities of natural resources in order to succeed in fact it's the largest sugar buyer in the
world however as the 90s arrived coke began to face yet more negative publicity for example in mexico city one
shopkeeper said she was told her deliveries of coke would stop unless she removed an alternative cola from her
store meanwhile in brazil coke trolled a new type of vending machine that would increase the price of coke depending on
how hot it was outside also to further boost sales figures and trick investors coke engaged in channel stuffing forcing
distributors to buy more syrup than they needed at the end of quarters to make coke's profits look better than they really were however the backlash against
coke reached its peak when in 2003 a campaign was launched called stop killer coke that claimed the coca-cola company
was responsible for the murder of union members who worked in coke bottling plants in colombia now cope deny this
and the exact truth remains unclear but what we do know is that since 1989 countless unionized workers employed at
the coca-cola bottling plants in colombia have been killed and many more have received death threats in fact in
2001 the international labor rights fund filed a lawsuit against coca-cola butlers claiming they'd openly engaged
death squads to intimidate torture kidnap and even murder union officials in latin america a few years later
another lawsuit was brought about by guatemalan workers alleging that they and their families at the cocom bottling
plant had been victims of violence after the workers decided to join unions they'd wanted to join a union because
some workers were earning just 15 per day for 15 hour shifts however again there were allegations of kidnapped
torture and murder of union leaders and their family members now coca-cola argued that the guatemalan plant is
independently owned and coke had absolutely no knowledge of these incidents and coke genuinely may be
telling the truth here we don't know if they actually colluded or knew about the violence or if they just indirectly
benefited but either way the unions have been decimated by the attacks and threats and
in parts of latin america coco has been referred to as the sparkle of death what
we do know for sure is that the deeper you look into coke's past the more you chip away at their wholesome image they
try to present for example ace asa candler the entrepreneur who incorporated the coca-cola company and
played a pivotal role in popularizing the drink once said the most beautiful sight that we see is the childhood labor
the younger the boy began work the more beautiful however before we all get the pitchforks out i think it's important to
acknowledge that if you look at any giant company with such a long history you're probably gonna find some ethical
disasters in their past that's not an excuse but a reminder that business is brutal many of the same criticisms of
coke also apply it to many of their competitors and of course coke has done plenty of good for the world too we can't come to
conclusions from just one side of the story it's never black and white what's ironic though is that some of the worst
press coca-cola has ever received was nothing to do with any of these moral or legal issues nope folks biggest backlash
of all came from changing the taste of their drink
Chapter 5: New Coke - The Greatest Disaster
the coca-cola company has been offered the chance to buy pepsi's business multiple times including for only fifty
thousand dollars in 1933 but coke turned them down instead coke tried to sue
pepsi for using the word cola in their ads claiming that they were trying to rip off coca-cola's products this
backfired when pepsi countersued a coke was using anti-competitive tactics to build a monopoly the courts agreed and
ruled that kola was a generic term anyone could use however since coke missed their chance to buy pepsi they
ended up getting locked in an ongoing marketing battle with them at one point coke and pepsi both started cutting
their prices and offering discounts to try and compete with each other but they soon realized this was hurt in both of
them whether they made a secret deal behind closed doors or not is unknown but soon they both reverted back to
their normal pricing and tried to compete on advertising instead but eventually pepsi had the simple but
genius idea to actually compete on taste in 1975 pepsi launched the pepsi
challenge where they gave people two white cups one containing pepsi and one containing coca-cola people didn't know
which was which and were encouraged to taste both to see which they preferred the test results showed that pepsi was
preferred by slightly more people and so pepsi started using this stat in all of their advertising and all across america
more people
denied this was true but when they conducted their own tests they found that pepsi did indeed score slightly
higher in a blind taste test meanwhile coca-cola was slowly but steadily losing market share they tried
everything huge marketing campaigns and price promotions but every year coke's market share slightly declined and pepsi
slightly increased it started to seem that perhaps the pepsi challenge was right the problem was that more people
simply preferred the taste of pepsi and thus coca-cola began an incredibly secret mission they were going to change
coke's formula after rigorous testing and trials they discovered a new cola formula that consistently performed
better than both original coke and pepsi over and over they repeated the blind
taste test and the data was clear the new formula was more popular and so just short of coca-cola's 100-year
anniversary they did the unthinkable they changed the coca-cola formula and replaced it with new coke coca-cola is
about to announce what it calls the most significant development in its history pepsi cola says coke is merely trying to
match pepsi's success these two products pepsi and coke have been going at it eyeballed eyeball
and in my view the other guy just blinked and immediately the chaos began
every single day thousands of phone calls and letters arrived at coke's offices they were a mixture of distraught people begging for the old
version of coke mac and people who were downright furious coco had the nerve to take away the original formula coke
expected the uproar would soon die down especially once people actually tried the new formula but the outrage simply
intensified the media was equally full of outrage reports and at the coke phone lines were constantly jammed with
complaints for months when new coke advertisements were shown on giant screens and stadiums people loudly
booged it became popular to hate new coke of course many of the people complaining hadn't even tried the new
formula as one coke employee put it we could have introduced the elixir of the gods and it wouldn't have made any
difference it was soon very clear that taste hadn't been the issue it didn't matter if new coke technically tasted
better in blind taste tests coke success had never been about taste in the first place thanks to its incredible marketing
the world viewed coca-cola as an old friend a piece of everyday life for around 100 years coke had been present
never changing no matter what was going on in the world it was an icon and changing something that meant so much to
people was considered a betrayal one angry letter commented that changing coke is like making the grass purple
another claimed you've taken away my childhood even months later the protests were not dying down and it soon became
clear the company had to revert back to the old formula they had made a gigantic mistake there were very few instances in
history of such strong backlash against the company's decision and yet despite that the new coat disaster ended up
being one of coke's greatest marketing triumphs you see when coke caved in and brought back the original formula under
the name classic coke suddenly all of the anger turned to euphoria and praise
suddenly all the letters and phone calls arriving at the company were filled with adoring fans thanking the company and
commenting how much it meant to them one coke marketer said you would have thought we'd invented a cure for cancer
immediately after reintroducing the old flavor coke sales dramatically increased business week named the whole thing the
marketing blunder of the decade but some skeptical analysts felt the company had staged the entire thing for publicity
and to remind customers how much coke means to them if the whole stunt really was planned it would be one of the
greatest marketing strategies imaginable but that was not the case at all new coke was a catastrophic misjudgment by
coke they really had thought people would prefer new coke in fact even after they reintroduced the classic version
they kept new coke available in shops as well because they thought once people actually had more time to try the new flavor eventually people would convert
to the new formula i'm don keogh president of the coca-cola company when we brought you the new
taste of coke we knew that millions would prefer it and millions do and we knew that it would beat the taste
of our major competitor and it does what we didn't know was how many thousands of you would phone and write
asking us to bring back the classic taste of original coca-cola well we read
and we listened and you know the rest they're both yours the new taste of coke and coca-cola classic your right of
choice is back but they were wrong again sales of new coke never improved and eventually it was removed from
circulation completely however despite being so completely wrong the end result
was that new coke had unintentionally made people realize how much they loved original coke the whole thing helped
people feel more attached and loyal to coke than ever before which is why new coke was one of the most successful
mistakes ever but here is the craziest part of all this it was proven time and time again that in a test where people
didn't know which drink was which people wrote new coke the best pepsi second and original coke third
and yet customers had overwhelmingly decided they wanted original coke they wanted the drink they liked the taste of
the least and that is the biggest compliment coca-cola's marketing could ever hope to get the image of cochlear
created in people's minds is so powerful that it overrides taste logic or data in
many ways coke was still operating off the same principle that the patent medicine industry had used all those
years ago it's not about what your product really is it's about what your customer thinks your product is it's about what it
represents and that's the reason coke continued to spend billions and billions on advertising every year even though
around 94 percent of the world's entire population recognized the coke logo already and over 2 billion servings of
coca-cola is drunk every day coke is built on an image that needs to be constantly reinforced because sure you
can hear about coke's devastating impact on the health of children their lobbying of governments and countless
controversies they've tried to sweep under the carpet but does it really make any difference
because ultimately poke have never tried to sell you on their sugar water they sell you on the good times friends
family and happy memories coke positions itself as an old friend and hey what's a
little controversy between friends
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