Coca-Cola Corporation and the Obesity Crisis

Coca-Cola Corporation
And the
Obesity Crisis

Coca-Cola and the Obesity Crisis

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Prepared for Jenell Barnard Keller

COMM/BUS 338

Prepared by John Euler, Matthew Holmes, Ann Roda, Sean Tasker, Katina Wolfenbarger
University of Michigan-Flint

April 5, 2015

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Memo
TO: Professor Keller, COM 338
FROM: Katina Wolfenbarger, Group 8
DATE: April 5, 2015
SUBJECT: Coca-Cola: A Fortune 500 Company

As requested, the following is a report providing our research on Coca-Cola and the health risks
associated with obesity and Coca-Cola product consumption.
We have included a summary on Coca-Colas history and the strategies they utilize to remain one
of the most profitable companies around the world. Coca-Cola dominates the competition even
though some of the product line effects obesity. Our group believes the company can implement
further improvements in promoting healthy choices for consumers and offer a plan of action to
address the issue.
Dr. John Stith Pemberton, first introduced Coca-Cola in 1886 and has remained a success ever
since. By maintaining a strong presence globally, using various advertising and marketing
strategies, offering a wide array of products and distributing them around the world Coca-Cola
has continued to thrive worldwide ever since.
Coca-Cola remains one of the most profitable companies around the world and dominates the
competition even though some products contribute to obesity and other health risks. Coca-Cola
products containing artificial sweeteners such as aspartame can be damaging to ones health.
Many products are high in calories and promote obesity especially in children. Consequently,
Coca-Cola has since developed plans to promote health and wellness by introducing new
products and sponsoring a wide range of sporting events to promote physical fitness.
The company now has a venturing and emerging brands team, which has invested into other
health drinks such as Honest Tea, Core Power milk-based protein drinks and Zico coconut water.
Our recommendation for Coca-Cola suggests continuing research and development efforts in
order to stay on top of current trends in health and wellness.
Katina Wolfenbarger, Ann Roda, Sean Tasker, John Euler, and Matthew Holmes worked together
to gather the provided information by utilizing various internet sources.
Please send an e-mail with any questions and thank you for your time.

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Table of Contents
Written by John Euler
A)

B)

Introduction
1)

Coca-Colas History and Success within the United States. 5

2)

Coca-Cola Success Globally 6

3)

Coca-Colas Successful Marketing Strategy 6

Coca-Colas Plan Developed in 2013 to Fight Obesity .................................... 8

1)

C)

Is Coca-Cola doing enough to help obesity? ........................................... 8

Health Risks Associated with Obesity

1)

Causes of obesity and risks for children ........................................................... 9

2)

How severe is the obesity crisis in the United States? ......................................... 10

3)

Is obesity a problem in other countries? .............................................................. 10

5)

Obesity and our economy ...................................................................................... 11

3)

Medical complications associated with obesity ................................................... 11

4)

Do artificial sweeteners pose a health risk? ........................................................ 12

5)

Other health risks associated with Coca-Cola products.................................... 13

D) Recommendations: Coca-Cola Can Help Fight Obesity..........14

E)

Illustrations
1)

Illustration A-1: Obesity Projections for 2030 ................................................... 15

2)
Illustration A-2: Medical Complication of
Obesity ........................................ 16

F)

References ........................................................................................................................ 17

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Introduction
Coca-Colas History and Success within the United States - Written by Matt Holmes
It all started in a small pharmacy in Atlanta in 1886, where Dr. John Stith Pemberton
created what would eventually be the worlds number one selling sparkling beverage
(Britannica). Pemberton took his recipe to his then partner and bookkeeper, Frank M. Robinson,
who is the mastermind behind the famous name of Coca-Cola as well as the distinct script, still
used today (Coca-Cola Company). Pemberton sold portions of his business, but most of it to
Atlanta businessman, Asa G. Candler in 1889, who is responsible for distributing the Coca-Cola
beverage to fountains outside of Atlanta (Giebelhaus). In 1916, the company started
manufacturing there trademark contour bottle, which has remained the same as it currently is
today. In 1928, Robert Woodruff, who was the companys president, took the expansion to
another level, and introduced it overseas. The soda fountain business prior to 1920 was the main
source of company sales, but the rapid expansion of bottling interests fueled Coca-Cola syrup
sales through the 1920s and 1930s (Zainaldin). Under Woodruff's directive to establish an
international market, bottling plants, to which the company sold concentrate, were operating in
forty-four countries by the late 1930s (Zainaldin). By the 1960s the company introduced new
flavors such as Fanta, Sprite, and Fresca as well as buying the Minute Maid Company, which are
all still part of the product line today. In the summer of 1980, the Coca-Cola Company
introduced Diet Coke (Moye). Diet Coke would soon become the worlds number one lowcalorie drink in the world. The companys dominance around the world is growing every year,
and the company continues to add to the already distinguished product line. Since the 1990s
they have added products like Powerade, and Schweppes (Britannica).

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Coca-Cola Success Globally - Written by Matt Holmes

Coca-Cola has experienced the highest levels of success in the United States, as well as
around the world. The company is successful for a number of reasons; they have an undeniably
strong presence around the world, the company has licensed bottlers all over the world, they use
strong advertising and marketing campaigns, and they have a product line that accommodates the
entire population as well as occasional innovations. Coca-Cola operates in more than 200
countries and produces nearly 450 brands, the Coca-Cola system has successfully applied a
simple formula on a global scale: provide a moment of refreshment for a very small amount of
money, a billion times a day (Coca-Cola Company). The company is able to take advantage of
opportunities around the world and build bottling facilities. This gives Coca-Cola a way to serve
a more diverse group of people based on geography (MBA Lectures). Each one of these bottlers
manufactures all the products that are then distributed out to local businesses and or vending
machines (MBA Lectures).
Coca-Colas Successful Marketing Strategy - Written by Matt Holmes
The Coca-Cola Company has thrived because of successful marketing strategies. This
dates all the way back to the times of Asa Candler and Robert Woodruff. Candler began
marketing the product by hiring sales staff to pass out coupons giving away a bottle of Coke. His
goal was to let the people try it, like it, and buy it in the future. He also began putting logos all
over the place, on calendars, posters, notebooks, and bookmarks in an attempt to reach customers
on a larger stage. Under Candler's watch, Coca Colas advertising budget grew from $100,000 in
1901 to $1 million in 1911 (Gunderson), trying to make Coke a national brand opposed to only a
regional brand. Woodruff then took advertising and marketing to the next level. He introduced
the six-bottle carton, this made the product easier to take home and have for future consumption.

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In addition, Woodruff created the metal, open top cooler, which made Coca-Cola available in
retail outlets (Zainaldin). Woodruff spent his time as president of the company introducing the
brand Coca-Cola to the world. He captured many foreign markets with elaborate innovative
campaigns (Giebelhaus). In 1928, he sent Coca-Cola with the U.S. Olympic team when they
traveled to Amsterdam. He had the company logo plastered all over Canadian racing dog sleds,
as well as the walls of Spanish bull fighting arenas.
Today, marketing still plays a key role in the success of the Coca-Cola Company.
However, another key element in the success of the company is the addition of innovative items.
Ever since the company was born, there has been a need for innovation. The have come a long
way from the original fountain drink to the glass bottle, to the use of distribution facilities, and
eventually to the expansion of products and use of merchandisers. In the 1960s Coca-Cola made
a bold statement when they added innovative products like Fanta, Sprite, Tab, and Fresca to the
Coke family (Coca-Cola Company). One reason that Coca-Cola began to introduce new
beverages during the 1960s was the competition from Pepsi-Cola, sold by PepsiCo, Inc.
(Bloomberg). In the 1980s soft drink consumers were gravitating to low or no calorie brands,
and the companys business was struggling following the years of inflation and rising costs,
resulting in inefficiencies (Moye). Jack Carew who was the leader of the Diet Coke campaign
said, We needed a big idea to come out of the toughest decades wed ever seen (Moye). That is
why in 1982, Diet Coke was born. All of these campaigns are reasons why the company has been
successful through marketing. The company is never stagnant and is always looking for ways to
expand and appeal to the general public.

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There have been some serious speed bumps along the way to becoming the number one
soft drink in the world, however, the ongoing issue for Coca-Cola has been the widespread issue
of obesity.
Coca-Colas Plan Developed in 2013 to Fight Obesity - Written by John Euler
In 2013, Coca-Cola Corporation developed a plan of action to address obesity in two
hundred countries. The company also plans to stop advertising Coca-Cola products to children
under the age of twelve. The company also plans to include calorie counts in a more visible
manner on its labeling. Beginning in 2009, Coca-Cola offers low calorie and zero calorie
products to the U.K, and is planning to provide these beverages to every country in the future
(Batty, May 2013).
Is Coca Cola doing enough to help obesity? - Written by Matt Holmes
Even Coca-Cola, the world's largest beverage company, is now calling obesity "the issue
of this generation (Tinker). The company has developed multiple solutions to help obesity and
other health issues. Coca-Cola offers over two hundred low calorie or zero calorie options, as
well as offering all the full calorie beverages in a smaller package size. (Coca-Cola Company)
Coca-Cola offers brands like Glaceau, commonly known for their products like Smart Water and
Vitamin Water. They also offer a full product line of tea drinks, and juices such as Fuze, Gold
Peak, and Minute Maid. The Coca-Cola Company has a venturing and emerging brands team,
whose goal is to develop new billion-dollar brands. The team has helped develop and has
invested in Honest Tea, Core Power milk-based protein drinks and Zico coconut water (Stewart).
All of these different packages offer the consumer a more healthy option opposed to the

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sparkling soft drinks. On every package, the company has placed a calorie count, designed to
give the consumer a chance to make an informed decision. (Coca-Cola Company).
Coca-Cola collaborates with local governments, health organizations, and local
communities to support a more active lifestyle. Coca-Cola worked with a program called Troops
for Fitness, which is a collaborative initiative between the National Recreation and Parks
Association, The Coca-Cola Company and the City of Boston (Tentindo). They encourage
exercise throughout the city of Boston by hiring veterans to teach and lead classes in parks
throughout the citys neighborhoods (Tentindo). In 2013, Coke introduced a new campaign
slogan Come Together to encourage consumers to unite in the fight against obesity.
Coca-Cola will fight the obesity battle until the end of time, taking the right approach,
Coca-Cola continues to help and support the obesity crisis whenever possible. The company
offers countless options such as no calorie or low calorie. They have taken it upon themselves to
take part in numerous partnerships against obesity, helping to spread awareness of obesity.
Causes of obesity and risks for children - Written by Sean Tasker & Katina Wolfenbarger
Causes of Obesity: Not getting enough exercise that your body needs, eating more food
than the body can use, consuming too much alcohol, stress, anxiety, feeling sad, not sleeping
well, menopause and pregnancy. Medical problems can cause obesity like underactive thyroid,
medicines like birth control, anti-depressants. Overweight children are more likely to become
overweight as adults (NCBI).
Obesity is on a rise in not only adults, but children as well. Obesity puts children
at risk of high blood pressure and cholesterol, pre diabetes, sleep apnea, and low self-esteem. In a

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study done on children ages 5 to 17, 70% had at least one risk factor. Overtime, obesity can lead
to type two diabetes, heart disease, stroke, and multiple cancers (Centers for Disease Control and
Prevention). Approximately 17% (or 12.7 million) of children and adolescents aged two to
nineteen years have obesity. However, prevalence of obesity among children aged 2 to 5 years
has decreased significantly from 13.9% in 2003-2004 to 8.4% in 2011-2012 (Ogden).
Obesity is associated with an increased risk of several chronic diseases and lifethreatening physical, social, and psychological health problems (Kremers). Gooren (2008)
suggests that 80% of obese adults have at least one associated disease and 40% have two or more
associated diseases, such as diabetes mellitus, cardiovascular disease, gallbladder disease,
respiratory diseases, sleep apnea, and certain forms of cancers (endometrial, breast, and colon).
How severe is the obesity crisis in the United States?(See Illustration A-1) - Written by John
Euler
The American medical association considers obesity a disease. Obesity occurs in thirtysix percent of Americans as reported by The Center for Disease Control. In a study conducted,
researchers predict which states will have the highest obesity rates by the year 2030. The report
predicts at least thirteen states will see obesity rates rise to sixty percent and possibly thirty-nine
states could see obesity rates rise to over fifty percent (MHA Degree, January 2015).
Is obesity a problem in other countries? - Written by Katina Wolfenbarger
The United States is not the only country affected by obesity however. Obesity occurs in
Mexico, Australia, New Zealand, United Kingdom, Canada, and Ireland. Soft drinks are a
common factor leading to an increase (Countries with the Lowest and Highest Obesity Rates in
the World).
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Countries not affected by obesity include Sri Lanka, Indonesia, Sudan, and Singapore,
showing the lowest obesity rates in the world. Coca-Cola is available but poverty levels and
culture are main factors in low obesity levels. The only countries where Coca-Cola is unavailable
are Cuba and North Korea (BBC News).
Obesity and our economy - Written by Katina Wolfenbarger
Not only is obesity affecting our health, it affects our economy as well. A major issue is
our countries medical spending. Since obesity leads to such serious illnesses, the cost of
diagnosing and treating those illnesses continue to rise with our obesity levels. Since obesity
results in so many illnesses, there has been an increase in disability pay and insurance premiums.
If obesity levels were lower, it would allow more room for companies and our overall economy
to thrive in the United States
There is an increasing connection between obesity and absenteeism as well. Studies show
obese employees have little motivation and tend to be less productive. Not only does missing
work affect your personal income, it affects the workplace as well due to a loss in overall
productivity. (Hammond, Levine, Ross).
Medical Complications associated with Obesity (See Illustration A-2) - Written by John Euler
Looking not only within the United States, but also worldwide, obesity has doubled to
over thirty percent of the world population as reported in a study from 2006. Obesity is affecting
the world and appears as a problem even in less affluent countries. Many medical complications
appear when individuals become overweight. When the body mass index reaches a value, over
thirty-five, individuals are at greater risk of death due to obesity. Obesity is strongly linked to

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type two diabetes in all ethnic groups and genders, and the weight gain seems to precede the
development of diabetes. Hypertension is another disease linked to obesity. In a Framington
Health Study excess body weight accounts for twenty-six percent of hypertension in men and
twenty-eight percent in women. The effectiveness of medication to control hypertension reduces
when individuals are obese. The good news is blood pressure falls with every pound of weight
loss. Dyslipidemia, associated with cholesterol, is a disease associated with obesity. As weight is
lost, cholesterol levels decrease thereby improving the health of the individual. Obesity affects
the heart, including coronary heart disease, heart failure, and atrial fibrillation. Obesity is linked
to strokes in both men and women. Sleep apnea, asthma, acid reflux disease, fatty liver disease,
osteoarthritis, cancer, chronic kidney disease, surgical and anesthetic complications,
gynecological and obstetric complications are all associated with obesity. For all diseases
associated with obesity, weight loss improves health. (Malnick and Knobler).
Obesity has many causes such as genetics, behaviors, and the environment. Studies show
behaviors and environmental influences are greater factors contributing to obesity rather than
biological changes. Therefore, if we look for ways to change environmental and behavioral
patterns associated with maintaining a healthy weight, we will improve the overall health of
society (Malnick and Knobler).
Do artificial sweeteners pose a health risk? - Written by John Euler
Reducing calories in sugary sodas, artificial sweeteners provide the science community
with research opportunities as chemically made sweeteners pose possible health risks. In
the1970s saccharin caused bladder cancer in laboratory rats and the Food and Drug
Administration removed saccharin from the approved list. Later, scientist conducted more studies

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and could not prove conclusively that saccharin causes bladder cancer in humans, only rats.
(National Cancer Institute).
Aspartame, another artificial sweetener, fell under scrutiny in 1996 when testing linked
consumption of aspartame to people with brain tumors. Another study revealed brain cancers
began to rise in 1973 and in people over age 70, before aspartame became available. Therefore,
scientists concluded aspartame could not have caused brain cancer because the artificial
sweetener went on the market in 1981, and the results of the study did not establish a clear link
(National Cancer Institute).
The FDA has approved and permits for use in food, the following artificial sweeteners:
acesulfame potassium, sucralose, neotame, saccharin, and aspartame (National Cancer Institute).
Although there is presently no indication of artificial sweeteners causing cancer, scientists
believe artificial sugars have not made much of difference in the obesity crisis (Vergano). The
artificial sweeteners affect the microbiome, the bacteria in our intestines, in ways that cause
glucose intolerance, precluding the elevated blood sugar that often precedes diabetes
(Vergano). The researchers also indicated a lack of understanding why artificial sweeteners
would stimulate the growth of harmful intestinal bacteria. The study also noted some people
responded differently to changes in diet, and approximately forty percent of respondents blood
sugar remained unaffected. In conclusion, the world needs to move towards personalized
nutrition.
Other health risks associated with Coca-Cola products - Written by Katina Wolfenbarher
Coca-Cola has various health risks involved in their products. Coke contains phosphoric
acid, which is known to cause breakdown of bones leading to osteoporosis. Phosphoric acid also

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destroys your teeth (Health Issues). Their products contain carcinogens as well. Carcinogens lead
to multiple cancers (Safety and Health Topics).
Recommendations: Coca Cola Can Help Fight Obesity Written by Sean Tasker and Ann Roda
Coca Cola can do multiple things to help fight obesity. Coca Cola offers more than 3500
different types of beverages ranging from Coca Cola, to bottled water, as well as drinks that are
reduced, low, and no calorie beverages. Coca Cola can start by heavily marketing the more
healthy products on the market like their bottled water. Use the well-known brand name to
promote something healthier for all. Products like Coca Cola are meant to be enjoyed and can be
while still maintaining a healthy lifestyle. This is why Coca Cola has expanded its products and
has multiple choices of beverages. Another step in the right direction would be to make smaller
portions of the less healthy products. With smaller portions the consumers would be limiting the
amounts of sugar and calories that they intake, it would also be at a lower cost. The best thing
that Coca Cola can do is be upfront about their products and educate their consumers about what
is in their products and possible outcomes of drinking large amounts of sugar and empty calories
and how it affects the human body. If Coca Cola is upfront and promotes a healthier lifestyle as a
whole, informed consumers can make a better choice with what and how much of a product they
are going to put into their bodies.
Coca- Cola has done a lot in its fight against obesity. The issue is that their product isnt
exactly the healthiest one on the market. Theyve done their best to widen their variety of drinks
and make some of them healthy, and I think that is the most they can do. They offer a large
variety of low calorie beverages and flavored waters. Selling soft drinks and fighting obesity is a
difficult task, however, as successful as Coca-Cola has been, they make a tremendous effort.

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Recommendations are difficult to give when they already put in such a great effort in the fight
against obesity.

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Illustration A-1-Adult Obesity in 2030 (MHA Degree, January 2015)

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Coca-Cola and the Obesity Crisis

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Illustration A-2-Medical Complications Associated with Obesity (Russette)

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Conclusion Written by Ann Roda

Coca-Cola is a worldwide company that doesnt exactly help improvement with the
worlds obesity issues. Although these issues are mostly in the United States, this refreshing
drink supplies multiple sugars, sodium, and carbohydrates that increase societies chances of
obesity. In order to reduce child obesity, Coca-Cola decided to stop advertising to children under
the age of twelve.
Obesity causes a wide variety of health risks. People dont realize that their diet and
exercise habits can be a danger to them, creating complications anywhere from heart disease to
sleep apnea. This is why Coca-Cola has done everything they can do to prevent health issues and
still sell their product. They have created multiple low calorie and low sugar drinks that taste
good and are much better for you. However, as a soda pop company, they were obviously having
trouble creating carbonated syrup that is actually healthy for you. Soon they came out with new
brands of drinks such as Honest Tea, Core Power milk-based protein drinks and Zico coconut
water. They also bought the minute maid company selling lemonade and other types of fruit
juices. This obviously increased their production sales and was much better for the health of their
consumers.
Many things were explored on Coca-Colas journey to health and success. They
advertised their original product and did well. When competition came forward, they began to
create different flavors. When obesity in the United States became a bigger issue, like anything
or anyone successful, they adjusted to the environment. They took their product and made it
something more modern that society would want, still not straying from their original product.

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Although they could not reach their expectations with their original product, they increased their
range with other types of drinks that could satisfy the customers.

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