2012.

Abdul Munam Jamil Paracha, Muhammad Waqas, Ali Raza Khan &
Sohaib Ahmad. This is a research/review paper,
distributed under the terms of the Creative Commons AttributionNoncommercial 3.0 Unported License
http://creativecommons.org/licenses/by-nc/3.0/), permitting all noncommercial use, distribution, and reproduction in any
medium, provided the original work is properly cited.
Global Journal of Management and Business Research
Volume 12 Issue 12 Version 1.0 Year 2012
Type: Double Blind Peer Reviewed International Research Journal
Publisher: Global Journals Inc. (USA)
Online ISSN: 2249-4588 & Print ISSN: 0975-5853
Consumer Preference Coca Cola versus Pepsi-Cola
By Abdul Munam Jamil Paracha, Muhammad Waqas, Ali Raza Khan
& Sohaib Ahmad
University of Lahore, Pakistan.
Abstract - This study is conducted between two global giants Coca Cola &
Pepsi-cola. This
research paper is basically a comparative study of two well known
competitors in beverage
industry of Pakistan which are Pepsi Cola & Coca Cola. The primary purpose
of this paper is to
find out which company is leading the market. This research required us to
conduct the
consumer research on why they chose the drink. To find out the factors &
reasons that influence
to choose their preferred drink.
Keywords : Giants, Comparative, Competitors, Leading, Factor & Reasons.
GJMBR-A Classification : FOR Code: 150505,150501, JEL Code: D11, D12

ConsumerPreferenceCocaColaversusPepsi-Cola
Strictly as per the compliance and regulations of:Consumer Preference Coca
Cola Versus
Pepsi-Cola
Abdul Munam Jamil Paracha
, Muhammad Waqas
, Ali Raza Khan

& Sohaib Ahmad

Abstract - This study is conducted between two global giants
Coca Cola & Pepsi-cola. This research paper is basically a
comparative study of two well known competitors in beverage
industry of Pakistan which are Pepsi Cola & Coca Cola. The
primary purpose of this paper is to find out which company is
leading the market. This research required us to conduct the
consumer research on why they chose the drink. To find out
the factors & reasons that influence to choose their preferred
drink.
Keywords : Giants, Comparative, Competitors, Leading,
Factor & Reasons.
I. Introduction & Literature Review
he world's soft drinks market is totally subject by
just two players: - Coke & Pepsi. Coke, 'The
genuine thing' other than a century old was born
eleven years more on of its competitor & a century later
on, still maintains the original lead. Pepsi, 'The
challenger', even now poses as the hurried, young

upstart & is struggle the cola was as the drink for the
younger age group.
The tale of Coke was 1st geared up by
pharmacist John Styth Pemberton in 1886. at first, the
drink was introduced in Atlanta, Georgia, & was sell for
five cents. In 1886, sales of Coke averaged 9 drinks per
day. In 1891, Atlanta entrepreneur Asa G C&ler acquire
entire ownership of the Coke business & in 1919; The
Coca Cola alliance was sold to a set of investor for
twenty five million. In the history 112 years, Coke has
surrounded itself into American society. In 1994, the
American consumption was further than 773 million
helping of Coke, diet Coke Sprite, Fanta, & other
foodstuffs of The Coca Cola Company.[1]
The company's beverage products consist of
bottled & canned beverages produced by independent
& company owned bottling & canning operations. A
variety of products of the business are Coke, Coca Cola
classic, diet Cherry Coke, caffeine free Coca Cola
classic, diet Coke, caffeine free diet Coke, Cherry Coke
Fanta & soft drinks, Sprite, diet Sprite, Mr. PiBB, Mello
Yellow, TAB, Fresca, caffeine free Coca Cola, Barq's
root beer & other flavors, Surge, PowerAde, Fruitopia,
Minute Maid flavors, Saryusaisai, Aquarius, Bonaqa &
Author : Students Lahore Business School, The University of Lahore,
Pakistan. E-mail : mjparacha2002@gmail.com

Author : Students Lahore Business School, The University of Lahore,

Pakistan.
other products developed for particular countries,
including Georgia & ready-to-drink coffees. The Minute
Maid Company, with operations first & foremost in the
US & Canada, produces, distributes & markets mainly
juice & juice-drink products, as well as Minute Maid &
products; Five lively & refreshment beverages; Bright &
breakfast beverages; Bacardi & tropical fruit mixers &
Hi-C & geared up to serve fruit drinks. The mainly
fashionable company of the US at currency value is $ 17
billion.
The tale of Pepsi-Cola was shaped in the late
nineties by pharmacist Caleb Bradham, & Frito-Lay Inc
was created by the 1961 joining of the Frito Company,
establish by Elmer Dolin in 1932, & the H W Lay
Company, found by Herman W Lay, also in 1932.
PepsiCo Inc was found in 1965 by Donald M Kendall,
president & chief executive officer (CEO) of Pepsi-Cola
& Herman W Lay, chairman & CEO of Frito-Lay, through
the merger of the two companies. Herman Lay is
chairman of the board of directors of the new business;
Donald M Kendall is President & CEO. The company
from its beginning had strong on the diversified portfolio
of products. With sales of $ 510 million & 19,000 staff,
the products of the new corporation were Pepsi Cola,

Diet Pepsi, Mountain Dew, Fritos & corn chips, Lay's &
potato chips, Cheeotos & cheese flavored snacks, &
Ruffles & potato chips & Rold Gold & pretzels.[2]
In the year 1984 with a move to merge core
businesses, PepsiCo was restructured to focus on its 3
businesses: soft drinks, snack foods & restaurants.
Transportation & sporting cargo businesses were sold
off. At current, Pepsi-Cola products are offered in nearly
150 countries & territory all over the world. Snack foods
operations are in 10 inter- national markets. At present,
Pepsi-Cola is a $22 billion company with approximately
140,000 employees worldwide.
In 1886, when Atlanta & Fulton County
approved prevention legislation, Pemberton responded
by increasing Coca Cola, basically a non alcoholic
edition of French Wine Coca.[3] The 1st sales were at
Jacob's Pharmacy in Atlanta, on May 8, 1886.[4] It was at
the begin sold as a patent medicine for five cents a
glass at soda fountain, which is well liked in the United
States at the occasion due to the trust that carbonated
water was fine for the fitness. Pemberton claims Coca
Cola cure many diseases, comprise morphine addiction,
impotence, dyspepsia, headache, & neurasthenia
T
2012 Global Journals Inc. (US)
Pemberton run the 1st advertisement for the beverage

on 29th May of the similar year in the Atlanta Journal.[5]

7
Global Journal of Management and Business Research Volume XII Issue XII
Version I 2012 YearIn 1888, 3 versions of Coca Cola sold by 3 part
businesses were on the market. Asa Griggs C&ler
obtain a stake in Pemberton's corporation in 1887 &
integrated it as the Coca Cola business in 1888. The
similar year, while suffering from an constant habit to
morphine,[6] Pemberton sold the rights a 2nd time to 4
extra businessmen: J.C. Mayfield, A.O. Murphy, C.O.
Mullahy & E.H. Bloodworth. In the meantime,
Pemberton's alcoholic sons Charley Pemberton start
selling his personal story of the manufactured goods.
In 1892 C&ler integrated a second company,
The Coca Cola Company, & in 1910 C&ler had the
earliest report of the company burn, further obscuring its
lawful origins. By the position of its 50th anniversary, the
drink had reached the position of a nationwide icon in
the USA. In 1935, it was expert kosher by Rabbi Tobias
Geffen, later than the company made tiny changes in
the sourcing of some ingredients.[7]
On April 23, 1985, Coca Cola, among lot
publicity, attempted to modify the method of the drink
with "New Coke". Follow-up taste test showing that the
majority consumers favored the taste of New Coke
together Coke & Pepsi, but Coca Cola administration
was not ready for the public's wistfulness for the older

drink, leading to a criticism. The company gave in to

protests & returned to a difference of the old formula,
below the name Coca Cola Classic on 10 July, 1985.
On 7th February, 2005, the Coca Cola
Company publicize that in the 2nd quarter of 2005 they
designed to start a Diet Coke product sugared with the
artificial sweetener sucralose, the similar stimulus at
present use in Pepsi One. On 21 March, 2005, it
announces 1 more diet product, Coca Cola Zero,
sweetened to a certain extent with a mix of aspartame &
acesulfame potassium. In 2007, Coca Cola begin to put
up for sale a innovative "healthy soda" Diet Coke with
vitamins B12, niacin, magnesium, and B6, plus zinc,
marketed as "Diet Coke Plus."
In November 2009, due to a clash over general
prices of Coca Cola products, Costco closed restocking
its shelves with Coke & Diet Coke, However, some
Costco locations (like the ones in Tucson, Arizona sell
imported Coca Cola from Mexico.[8]
In 1903, Bradham motivated the bottling of
Pepsi-Cola from the drugstore to a borrowed
storehouse. This year, Bradham sold 7,968 gallons of
syrup. The next year, Pepsi sold in 6 ounce bottles &
sales better to 19,848 gallons. In 1909, automobile race
establish Barney Oldfield was the first celebrity to
endorse Pepsi-Cola, telling it as "A bully drink refreshing,

refreshing, a fine bracer before a race." The advertising

idea "Delicious & Healthful" was then used over the next
two decades. In 1926, Pepsi expected its 1st logo
redesign since the unique drawing of 1905. In 1929, the
logo was altered once more.
In 1931, at the depth of the Great Depression,
the Pepsi-Cola Company entered bankruptcy in
outsized part due to financial losses incur by speculate
on eccentrically changeable sugar price as a
consequence of World War I. Property were sold & Roy
C. Megargel buy the Pepsi trademark. 8 years later, the
company went bankrupt another time. Pepsi's resources
were then purchase by Charles Guth, the President of
Loft Inc. Loft was a c&y creator with put up for sale
stores that contained soda fountains. He requisite
replace Coca Cola at his stores' fountains subsequent
Coke refuse to give him a price cut on syrup. Guth then
had Loft's chemists reformulate the Pepsi Cola syrup
formula.[9]
On three separate occasions between 1922 &
1933, the Coca Cola Company was offered the chance
to buy the Pepsi Cola company & it declined on each
occasion.[10]
II. Methodology & Empirical Results
A total of 400 samples were selected from
different population. The samples should be such that

the consumer of cola drinks. We also tried to get an

adequate ratio of men & women in the samples. The
main demographic targeted were the younger age
group as they are more conscious & aware about the
brand. Also we tried to focus more on students & young
professionals as they would be more interested in trying
out new products & were more conscious.
Buyers who have been consuming cola drinks
were better able to answer the questions regarding the
influencing factors & the reasons for their consumption
& purchase.
Simple random sampling was use in this study.
In this study population was divided into mainly four
samples that were found as follows:
Sample 1: (Students)
Sample 2: (Employees)
Sample 3: (Businessman)
Sample 4: (Labor)
Questionnaires were distributed to sample and
Consumer Preference Coca Cola versus Pepsi-Cola
2012 Global Journals Inc. ( Global Journals Inc. (UUS) S
after few minutes questionnaires were collected.
Global Journal of Management and Business Research Volume XII Issue XII
Version I
8
2012 ear Y
The Pie Chart shows that we have collected data from

76.50% males & 23.50% females.Gender vs preferred cola

Count
which br& do you
prefer?
pepsi cola Total
coca
cola
Gender MALE 102 204 306
FEMALE 39 55 94
Total 141 259 400

Chi-Square Tests
Value df
Asymp. Sig.
(2-sided) (2-sided)
Exact Sig.
(1-sided)
Pearson Chi-Square 2.096a
1 .148
Continuity Correctionb
1.754 1 .185
Likelihood Ratio 2.063 1 .151
Consumer Preference Coca Cola versus Pepsi-Cola
2012 Global Journals Inc. (US)
Fishers Exact Test .174 .093

Linear-by-Linear Association 2.091 1 .148

N of Valid Casesb
400
a. 0 cells (.0%) have expected count less than 5. The minimum expected
count is
33.14.
b. Computed only for a 2x2
table
Exact Sig.
9
Global Journal of Management and Business Research Volume XII Issue XII
Version I 2012 Year
This Bar chart shows that out of 400 questionnaires 259
prefer Coca Cola & 141 prefer Pepsi-cola no value was
missing which means 64.75% people prefer Coca Cola
& 35.25% prefer Pepsi-cola.
In this Pie chart 44.50% sample is strongly agree that
the taste of their preferred cola is good, 39.00% only
agree, 10.00% people neutral, 3.00% disagree & 0.25%
strongly disagree with this statement.
This Bar chart shows that price is an important factor to
choose the brand according to our study.Table 1 is shows that When
comparing gender
versus preferred cola 102 male preferred Pepsi & 204
Coke while 39 female preferred Pepsi & 55 Coke since p
value is greater than 0.05 therefore there is no
association between preferred cola & gender.

Table 2
Age

Questions

No of
Samples

P-value

Which br& do you prefer 393 0.000

From whom do you buy cola 390 0.000
What quantity do you prefer to buy 393 0.000
It's satisfy my basic thirst 385 0.012
Frequency of advertisement 387 0.006
Br& ambassador 385 0.001
Br& value/Br& name 387 0.004
Question of table 2 are associated with age in
which some questions p value is 0.000 which is highly
associated with age so H0 is rejected & H1 is accepted.
Table 3
Average Income

Questions

No of

Samples

Pvalue

From whom do you buy cola 275 0.002

How often do you have drink cola 276 0.044
What quantity do you prefer to buy 276 0.006
Which is your most preferred channel
for purchasing this drink 276 0.027
It's provide enjoyment 276 0.032
Flavor 273 0.049
Cleanliness of bottles/not damaged 272 0.015
Manufacture & expire date 274 0.018
Br& value/Br& name 270 0.033
Questions of table 3 are associated with
average income because there p value is less than 0.05
so here our null hypothesis is rejected & alternative
hypothesis is accepted.
III. Conclusion
According to this research 259 sample prefer to
drink coca cola out of 400 & 149 prefer Pepsi cola. One
of the reasons is that people like Coca cola as it taste is
very good. Another reason is that Coke also acts as
refreshment to our sample which influence on them to
preferred coke. Price is also very important factor that
influence to choose their preferred brand. Frequency of

advertisement is also important factor for coke customer

to choose their brand. It will be also notice in our study
that promotion scheme & discount are also important to
purchase their preferred brand. Mostly people come to
know about their preferred brand through advertisement
on TV so people who watch TV are more aware of their
preferred cola as compare to other medium of
advertisement. Availability of convince is also important
factor to choose the proffered brand. The customers of
Coca Cola give importance to the brand ambassador
while Pepsi-cola customers have no influence on brand
ambassador. Coca cola customer are think that it is not
only used to fill their basic thirst but also for other
purposes while Pepsi cola customer think that there
preferred cola is important because it fill their basic
thirst. Both brand customer think that manufacture &
expire date is very important so that they proffered there
cola according to their perspective. Thus Pepsi have to
work more to compete with Coke & to lead the market.
References Rfrences Referencias
1. Biswas, A., & Sen, A. (1999).Coke vs Pepsi: Local &
Global Strategy. Economic & political weakly,
34(26), 1701-1708.
2. Kahn, B. E., Kalwani, M. U., & Morrison D. G.
(1998).Niching Versus Change-of-Pace Br&s: Using
Purchase Frequencies & Penetration Rates to infer

Br& Positioning. J Journal of Marketing Research,

25(4), 384-390.
3. Hayes, Jack. "Coca Cola Television Advertisements:
Dr. John S. Pemberton". Nation's Restaurant News.
Retrieved 2007-01-21.
4. "The Chronicle of Coca-Cola". Retrieved 2007-11-28.
5. Mark Pendergrast (2000). For God, Country & CocaCola. Basic Books. p. 32.
ISBN 0-465-05468-4.
6. Mark Pendergrast (2000). For God, Country & CocaCola. Basic Books. pp.
45 47. ISBN 0-465-054684.
7. "Beyond Seltzer Water: The Kashering of Coca
Cola", American Jewish Historical Society. Retrieved
2007-02-26.
8. Fredrix, Sarah Skidmore & Emily (November 17,
2009). "Costco nixes Coke products over pricing
dispute". Associated Press.
Consumer Preference Coca Cola versus Pepsi-Cola
Global Journals Inc 2012 Global Journals Inc. ( . US) US
9. "The History of Pepsi-Cola",
sodamuseum.bigstep.com paragraph 8.
10. Mark Pendergrast (2000). For God, Country & CocaCola. Basic Books. pp.
192193. ISBN 0-46505468-4.
Cumminghan, Scott M., (1967) Perceived Risk &
Br& Loyelty, in risk taking & information h&ling in
consumer behavior, D. Cox, ed. Bostan: Harvard

University press.
Basu, P.,Consumer Decision Analysis for purchase
of Fruit Drinks, Symbiosis Institute of Business
Management, Pune.
Chaturvedi, Mukesh, Coca cola: Welcome back!,
Eureka publishers.
Global Journal of Management and Business Research Volume XII Issue XII
Version I
10
2012 ear Y

Founded

1886 1898

Sodium

50mg 15mg

Originally Brewed From

Syrup Colouring
Caffeine

Coca leaves and Kola Nuts

E-150D

34 mg/serving

Taste Sweet Sweet

E-150D
37.5 mg/serving

Pepsin

Sugar Content

39mg 41mg

Carbonation content
Calories

160

80.9%Less

150

Flavors available
COKE
Coca-Cola, New Coke which was renamed Coke II, Diet Coke (also known as
Coca-Cola Light), Diet Coke Plus, Coca-Cola C2, Coca-Cola Zero, Coca-Cola
Cherry Zero, Caffeine Free Coca-Cola, Caffeine Free Diet Coke
Coca-Cola Cherry, Diet Coke Cherry, Coca-Cola with Lemon, Diet Coke with
Lemon,
Coca-Cola Vanilla, Diet Coca-Cola Vanilla, Coca-Cola with Lime, Diet Coke with
Lime,
Coca-Cola Black Cherry Vanilla, Diet Coke Cherry Vanilla, Coca-Cola Blk,
Coca-Cola with Orange (sold in the UK) Coca-Cola Raspberry, Diet Coke
Raspberry, and TaB (original Diet Coke, still available in some countries)
PEPSI
Pepsi Diet, Pepsi, Pepsi max, Pepsi One, Caffeine Free Pepsi, Caffeine free Diet
Pepsi, Pepsi Throwback, and Pepsi Next
Wild Cherry pepsi, Diet wild cherry pepsi, Pepsi Lime, Diet Pepsi Lime, Pepsi
Jazz in two flavors (Strawberries and Cream and Black Cherry Vanilla), Pepsi
Twist (lemon flavored in both regular and diet varieties)
In Australia Pepsi samba is sold, it's a mix of mango or the tamarind which is
like America's version of the Pepsi summer mix they sell here which tastes
like Skittles.
Crystal Pepsi and Blue Pepsi (had quick and fatal runs and didn't last long at
all).
Pepsi X and Holiday spice has more caffeine then regular Pepsi and is similar
to the energy drinks but is not sold in the US.
Price

Prices for coke and pepsi vary by the flavor and size; current prices for these
are available Amazon.com:

Flavor/type PepsiCo

The Coca-Cola Company Dr Pepper Snapple Group

Cola

RC Cola

Pepsi Coca-Cola

Diet Cola

Diet Pepsi / Pepsi Light

Pepsi ONE
Pepsi Max
Pepsi Next

Diet Coke / Coca-Cola Light

Tab
Coca-Cola Zero

Diet Rite

Diet RC
Cherry-flavored cola
"Pepper"-style

Pepsi Wild Cherry

Dr Slice

DOC 360

Mr. Pibb / Pibb Xtra Dr Pepper

Orange

Mirinda

Tropicana Twister
Tango
Slice Fanta
Minute Maid
Simply Orange
Royal Tru Orange (in the Philippines)

Crush

Sunkist
Lemon-lime Teem
Slice
Sierra Mist
7 Up (in countries other than the US)
Lemon & Paeroa

7 Up (in the US)

Other citrus flavors Mountain Dew

Kas
Izze

Sprite

Coca-Cola Cherry

Cherry RC

Citrus Blast Mello Yello

Vault
Fresca
Lift
Lilt

Sun Drop

Squirt
Ginger ale

Patio Seagram's Ginger Ale

Canada Dry

Schweppes
Vernors
Root beer

Mug Root Beer

Barq's

Ramblin' Root Beer (until 1995) A&W Root Beer

Stewart's Rootbeer
Hires Root Beer
Cream soda Mug Cream Soda

Barq's Red Creme Soda

A&W Cream Soda

Juices Tropicana
Dole
(prepackaged only, under license)

Minute Maid

Fruitopia
Simply Orange

Mott's

Nantucket Nectars
Snapple
Iced tea

Lipton

Brisk
(ready-to-drink products only, under license from Unilever)

Nestea

(manufactured by Nestl in the US and by a joint venture between Nestl and

Coca-Cola elsewhere)
Gold Peak Tea

Fuze Snapple
Sports drinks

Gatorade

Propel Powerade
Aquarius
Vitamin Water

All Sport

Energy drinks

AMP

Rockstar
Sting Full Throttle
NOS
Relentless
Burn
Monster
Samurai

Venom

Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending

machines throughout the world.[1] It is produced by The Coca-Cola Company
of Atlanta, Georgia, and is often referred to simply as Coke (a registered
trademark of The Coca-Cola Company in the United States since March 27,
1944). Originally intended as a patent medicine when it was invented in the
late 19th century by John Pemberton, Coca-Cola was bought out by
businessman Asa Griggs Candler, whose marketing tactics led Coke to its
dominance of the world soft-drink market throughout the 20th century.

The company produces concentrate, which is then sold to licensed Coca-Cola

bottlers throughout the world. The bottlers, who hold territorially exclusive
contracts with the company, produce finished product in cans and bottles
from the concentrate in combination with filtered water and sweeteners. The
bottlers then sell, distribute and merchandise Coca-Cola to retail stores and
vending machines. The Coca-Cola Company also sells concentrate for soda
fountains to major restaurants and food service distributors.

The Coca-Cola Company has, on occasion, introduced other cola drinks under
the Coke brand name. The most common of these is Diet Coke, with others
including Caffeine-Free Coca-Cola, Diet Coke Caffeine-Free, Coca-Cola Cherry,
Coca-Cola Zero, Coca-Cola Vanilla, and special versions with lemon, lime or
coffee. In 2013, Coke products could be found in over 200 countries
worldwide, with consumers downing more than 1.8 billion company beverage
servings each day.[2]

Based on Interbrand's best global brand study of 2011, Coca-Cola was the
world's most valuable brand.[3]

John Pemberton, the inventor of Coca-Cola

Contents [hide]
1 History
1.1 19th century historical origins
1.1.1 The Coca-Cola Company
1.2 Origins of bottling
1.3 20th century landmarks
1.4 New Coke
1.5 21st century
2 Production
2.1 Ingredients
2.2 Formula of natural flavorings
2.3 Use of stimulants in formula
2.3.1 Coca cocaine
2.3.2 Kola nuts caffeine
2.4 Franchised production model
3 Geographic spread

4 Brand portfolio
4.1 Logo design
4.2 Contour bottle design
4.3 Types
4.4 Designer bottles
5 Competitors
6 Advertising
6.1 Holiday campaigns
6.2 Sports sponsorship
6.3 In mass media
7 Criticism
7.1 Health effects
7.2 Allergy
8 Use as political and corporate symbol
9 Social causes
10 See also
11 References
12 Further reading
12.1 Primary sources
13 External links
History
19th century historical origins

Eagle Drug and Chemical House, Columbus, Georgia

Believed to be the first coupon ever, this ticket for a free glass of Coca-Cola
was first distributed in 1888 to help promote the drink. By 1913, the company

had redeemed 8.5 million tickets.[4]

This Coca-Cola advertisement from 1943 is still displayed in the small city of
Minden, Louisiana.
Colonel John Pemberton was wounded in the Civil War, became addicted to
morphine, and began a quest to find a substitute for the dangerous opiate.[5]
The prototype Coca-Cola recipe was formulated at Pemberton's Eagle Drug
and Chemical House,[6] a drugstore in Columbus, Georgia, originally as a
coca wine.[7][8] He may have been inspired by the formidable success of Vin
Mariani, a European coca wine.[9]

In 1885, Pemberton registered his French Wine Coca nerve tonic.[10] In 1886,
when Atlanta and Fulton County passed prohibition legislation, Pemberton
responded by developing Coca-Cola, essentially a nonalcoholic version of
French Wine Coca.[11] The first sales were at Jacob's Pharmacy in Atlanta,
Georgia, on May 8, 1886.[12] It was initially sold as a patent medicine for five
cents[13] a glass at soda fountains, which were popular in the United States
at the time due to the belief that carbonated water was good for the health.
[14] Pemberton claimed Coca-Cola cured many diseases, including morphine
addiction, dyspepsia, neurasthenia, headache, and impotence. Pemberton
ran the first advertisement for the beverage on May 29 of the same year in
the Atlanta Journal.[15]

By 1888, three versions of Coca-Cola sold by three separate businesses

were on the market. A copartnership had been formed on January 14, 1888
between Pemberton and four Atlanta businessmen: J.C. Mayfield, A.O.
Murphey; C.O. Mullahy and E.H. Bloodworth. Not codified by any signed
document, a verbal statement given by Asa Candler years later asserted
under testimony that he had acquired a stake in Pemberton's company as
early as 1887.[16] John Pemberton declared that the name "Coca-Cola"
belonged to his son, Charley, but the other two manufacturers could continue
to use the formula.[17]

Charley Pemberton's record of control over the "Coca-Cola" name was the
underlying factor that allowed for him to participate as a major shareholder in
the March 1888 Coca-Cola Company incorporation filing made in his father's
place.[18] Charley's exclusive control over the "Coca Cola" name became a
continual thorn in Asa Candler's side. Candler's oldest son, Charles Howard

Candler, authored a book in 1950 published by Emory University. In this

definitive biography about his father, Candler specifically states: "..., on April
14, 1888, the young druggist [Asa Griggs Candler] purchased a one-third
interest in the formula of an almost completely unknown proprietary elixir
known as Coca-Cola."[19]

Old German Coca-Cola bottle opener.

The deal was actually between John Pemberton's son Charley and Walker,
Candler & Co. with John Pemberton acting as cosigner for his son. For $50
down and $500 in 30 days, Walker, Candler & Co. obtained all of the one-third
interest in the Coca-Cola Company that Charley held, all while Charley still
held on to the name. After the April 14 deal, on April 17, 1888, one-half of the
Walker/Dozier interest shares were acquired by Candler for an additional
$750.[20]

The Coca-Cola Company

In 1892, Candler set out to incorporate a second company; "The Coca-Cola
Company" (the current corporation). When Candler had the earliest records of
the "Coca-Cola Company" burned in 1910, the action was claimed to have
been made during a move to new corporation offices around this time.[21]

After Candler had gained a better foothold on Coca-Cola in April 1888, he

nevertheless was forced to sell the beverage he produced with the recipe he
had under the names "Yum Yum" and "Koke". This was while Charley
Pemberton was selling the elixir, although a cruder mixture, under the name
"Coca-Cola", all with his father's blessing. After both names failed to catch on
for Candler, by the summer of 1888, the Atlanta pharmacist was quite
anxious to establish a firmer legal claim to Coca-Cola, and hoped he could
force his two competitors, Walker and Dozier, completely out of the business,
as well.[22]

When Dr. John Stith Pemberton suddenly died on August 16, 1888, Asa G.
Candler now sought to move swiftly forward to attain his vision of taking full
control of the whole Coca-Cola operation.

Charley Pemberton, an alcoholic, was the one obstacle who unnerved Asa
Candler more than anyone else. Candler is said to have quickly maneuvered
to purchase the exclusive rights to the name "Coca-Cola" from Pemberton's
son Charley right after Dr. Pemberton's death. One of several stories was that
Candler bought the title to the name from Charley's mother for $300;
approaching her at Dr. Pemberton's funeral. Eventually, Charley Pemberton
was found on June 23, 1894, unconscious, with a stick of opium by his side.
Ten days later, Charley died at Atlanta's Grady Hospital at the age of 40.[23]

In Charles Howard Candler's 1950 book about his father, he stated: "On
August 30th {1888}, he {Asa Candler} became sole proprietor of Coca-Cola,
a fact which was stated on letterheads, invoice blanks and advertising
copy."[24]

With this action on August 30, 1888, Candler's sole control became
technically all true. Candler had negotiated with Margaret Dozier and her
brother Woolfolk Walker a full payment amounting to $1,000, which all agreed
Candler could pay off with a series of notes over a specified time span. By
May 1, 1889, Candler was now claiming full ownership of the Coca-Cola
beverage, with a total investment outlay by Candler for the drink enterprise
over the years amounting to $2,300.[25]

In 1914, Margaret Dozier, as co-owner of the original Coca-Cola Company in

1888, came forward to claim that her signature on the 1888 Coca-Cola
Company bill of sale had been forged. Subsequent analysis of certain similar
transfer documents had also indicated John Pemberton's signature was most
likely a forgery, as well, which some accounts claim was precipitated by his
son Charley.[26]

Origins of bottling

Bottling plant of Coca-Cola Canada Ltd. January 8, 1941. Montreal, Canada.

The first bottling of Coca-Cola occurred in Vicksburg, Mississippi, at the
Biedenharn Candy Company in 1891. The proprietor of the bottling works was
Joseph A. Biedenharn. The original bottles were Biedenharn bottles, very
different from the much later hobble-skirt design of 1915 now so familiar.

It was then a few years later that two entrepreneurs from Chattanooga,
Tennessee, namely; Benjamin F. Thomas and Joseph B. Whitehead, proposed
the idea of bottling and were so persuasive that Candler signed a contract
giving them control of the procedure for only one dollar. Candler never
collected his dollar, but in 1899, Chattanooga became the site of the first
Coca-Cola bottling company. Candler remained very content just selling his
company's syrup.[27] The loosely termed contract proved to be problematic
for The Coca-Cola Company for decades to come. Legal matters were not
helped by the decision of the bottlers to subcontract to other companies,
effectively becoming parent bottlers.[28]

The first outdoor wall advertisement that promoted the Coca-Cola drink was
painted in 1894 in Cartersville, Georgia.[29]

Cola syrup is sold as an over-the-counter dietary supplement for upset

stomach.[30][31]

20th century landmarks

By the time of its 50th anniversary, the soft drink had reached the status of a
national icon in the USA. In 1935, it was certified kosher by Atlanta Rabbi
Tobias Geffen, after the company made minor changes in the sourcing of
some ingredients.[32]

Original framed Coca-Cola artist's drawn graphic presented by The Coca-Cola

Company on July 12, 1944 to Charles Howard Candler on the occasion of
Coca-Cola's "1 Billionth Gallon of Coca-Cola Syrup."

Claimed to be the first installation anywhere of the 1948 model "Boat Motor"
styled Coca-Cola soda dispenser, Fleeman's Pharmacy, Atlanta, Georgia. The
"Boat Motor" soda dispenser was introduced in the late 1930s and
manufactured till the late 1950s. Photograph circa 1948.
The longest running commercial Coca-Cola soda fountain anywhere was

Atlanta's Fleeman's Pharmacy, which first opened its doors in 1914.[33] Jack
Fleeman took over the pharmacy from his father and ran it until 1995; closing
it after 81 years.[34]

On July 12, 1944, the one-billionth gallon of Coca-Cola syrup was

manufactured by The Coca-Cola Company.

Cans of Coke first appeared in 1955.[35]

New Coke
Main article: New Coke

The Las Vegas Strip World of Coca-Cola museum in 2003

On April 23, 1985, Coca-Cola, amid much publicity, attempted to change the
formula of the drink with "New Coke". Follow-up taste tests revealed most
consumers preferred the taste of New Coke to both Coke and Pepsi[citation
needed], but Coca-Cola management was unprepared for the public's
nostalgia for the old drink, leading to a backlash. The company gave in to
protests and returned to a variation of the old formula using high fructose
corn syrup instead of cane sugar as the main sweetener, under the name
Coca-Cola Classic, on July 10, 1985.

21st century
On July 5, 2005, it was revealed that Coca-Cola would resume operations in
Iraq for the first time since the Arab League boycotted the company in 1968.
[36]

In April 2007, in Canada, the name "Coca-Cola Classic" was changed back to
"Coca-Cola". The word "Classic" was removed because "New Coke" was no
longer in production, eliminating the need to differentiate between the two.
[37] The formula remained unchanged.

In January 2009, Coca-Cola stopped printing the word "Classic" on the labels
of 16-US-fluid-ounce (470 ml) bottles sold in parts of the southeastern United
States.[38] The change is part of a larger strategy to rejuvenate the product's
image.[38] The word "Classic" was removed from all Coca-Cola products by
2011.

In November 2009, due to a dispute over wholesale prices of Coca-Cola

products, Costco stopped restocking its shelves with Coke and Diet Coke.
However, some Costco locations (such as the ones in Tucson, Arizona), sell
imported Coca-Cola from Mexico.[39]

Coca-Cola introduced the 7.5-ounce mini-can in 2009, and on September 22,

2011, the company announced price reductions, asking retailers to sell eightpacks for $2.99. That same day, Coca-Cola announced the 12.5-ounce bottle,
to sell for 89 cents. A 16-ounce bottle has sold well at 99 cents since being
re-introduced, but the price was going up to $1.19.[40]

In 2012, Coca-Cola would resume business in Myanmar after 60 years of

absence due to U.S.-imposed investment sanctions against the country.[41]
[42] Coca-Cola's bottling plant will be located in Yangon and is part of the
company's five-year plan and $200 million investment in Myanmar.[43]

Coca-Cola with its partners is to invest USD 5 billion in its operations in India
by 2020.[44]

In 2013, it was announced that Coca-Cola Life would be introduced in

Argentina that would contain stevia and sugar.[45]

In August 2014 the company announced it was forming a long-term

partnership with Monster Beverage, with the two forging a strategic
marketing and distribution alliance, and product line swap. As part of the deal
Coca-Cola was to acquire a 16.7% stake in Monster for $2.15 billion, with an
option to increase it to 25%.[46]

Production
Ingredients
Carbonated water
Sugar (sucrose or high-fructose corn syrup depending on country of origin)
Caffeine
Phosphoric acid
Caramel color (E150d)
Natural flavorings[47]
A can of Coke (12 fl ounces/355 ml) has 39 grams of carbohydrates (all from
sugar, approximately 10 teaspoons),[48] 50 mg of sodium, 0 grams fat, 0
grams potassium, and 140 calories.[49]

Formula of natural flavorings

Main article: Coca-Cola formula
The exact formula of Coca-Cola's natural flavorings (but not its other
ingredients, which are listed on the side of the bottle or can) is a trade secret.
The original copy of the formula was held in SunTrust Bank's main vault in
Atlanta for 86 years. Its predecessor, the Trust Company, was the underwriter
for the Coca-Cola Company's initial public offering in 1919. On December 8,
2011, the original secret formula was moved from the vault at SunTrust Banks
to a new vault containing the formula which will be on display for visitors to
its World of Coca-Cola museum in downtown Atlanta.[50]

Coca-Cola Museum in Atlanta, Georgia

A popular myth states that only two executives have access to the formula,
with each executive having only half the formula.[51] The truth is that while
Coca-Cola does have a rule restricting access to only two executives, each
knows the entire formula and others, in addition to the prescribed duo, have
known the formulation process.[52]

On February 11, 2011, Ira Glass revealed on his PRI radio show, This
American Life, that the secret formula to Coca-Cola had been uncovered in a
1979 newspaper. The formula found basically matched the formula found in
Pemberton's diary.[53][54][55][56]

Use of stimulants in formula

An early Coca Cola advertisement.

When launched, Coca-Cola's two key ingredients were cocaine and caffeine.
The cocaine was derived from the coca leaf and the caffeine from kola nut,
leading to the name Coca-Cola (the "K" in Kola was replaced with a "C" for
marketing purposes).[57][58]

Coca cocaine
Pemberton called for five ounces of coca leaf per gallon of syrup, a significant
dose; in 1891, Candler claimed his formula (altered extensively from
Pemberton's original) contained only a tenth of this amount. Coca-Cola once
contained an estimated nine milligrams of cocaine per glass. In 1903, it was
removed.[59]

After 1904, instead of using fresh leaves, Coca-Cola started using "spent"
leaves the leftovers of the cocaine-extraction process with trace levels of
cocaine.[60] Coca-Cola now uses a cocaine-free coca leaf extract prepared at
a Stepan Company plant in Maywood, New Jersey.[61]

In the United States, the Stepan Company is the only manufacturing plant
authorized by the Federal Government to import and process the coca plant,
[62] which it obtains mainly from Peru and, to a lesser extent, Bolivia. Besides
producing the coca flavoring agent for Coca-Cola, the Stepan Company
extracts cocaine from the coca leaves, which it sells to Mallinckrodt, a St.
Louis, Missouri, pharmaceutical manufacturer that is the only company in the
United States licensed to purify cocaine for medicinal use.[63]

Kola nuts caffeine

Kola nuts act as a flavoring and the source of caffeine in Coca-Cola. In Britain,
for example, the ingredient label states "Flavourings (Including
Caffeine)."[64] Kola nuts contain about 2.0 to 3.5% caffeine, are of bitter
flavor and are commonly used in cola soft drinks. In 1911, the U.S.
government initiated United States v. Forty Barrels and Twenty Kegs of CocaCola, hoping to force Coca-Cola to remove caffeine from its formula. The case
was decided in favor of Coca-Cola. Subsequently, in 1912, the U.S. Pure Food
and Drug Act was amended, adding caffeine to the list of "habit-forming" and
"deleterious" substances which must be listed on a product's label.

Coca-Cola contains 34 mg of caffeine per 12 fluid ounces (9.8 mg per 100

ml).[65]

Franchised production model

The actual production and distribution of Coca-Cola follows a franchising
model. The Coca-Cola Company only produces a syrup concentrate, which it
sells to bottlers throughout the world, who hold Coca-Cola franchises for one
or more geographical areas. The bottlers produce the final drink by mixing
the syrup with filtered water and sweeteners, and then carbonate it before
putting it in cans and bottles, which the bottlers then sell and distribute to
retail stores, vending machines, restaurants and food service distributors.[66]

The Coca-Cola Company owns minority shares in some of its largest

franchises, such as Coca-Cola Enterprises, Coca-Cola Amatil, Coca-Cola
Hellenic Bottling Company and Coca-Cola FEMSA, but fully independent
bottlers produce almost half of the volume sold in the world. Independent
bottlers are allowed to sweeten the drink according to local tastes.[67]

The bottling plant in Skopje, Macedonia, received the 2009 award for "Best
Bottling Company".[68]

On May 5, 2014, Coca-Cola said they are working to remove a controversial

ingredient, brominated vegetable oil, from all of their drinks.[69]

Geographic spread

Since it announced its intention to begin distribution in Burma in June 2012,

Coca-Cola has been officially available in every country in the world except
Cuba and North Korea.[70] However, it is reported to be available in both
countries as a grey import.[71][72]

Coca-Cola has been a point of legal discussion in the Middle East. In the early
20th century, a fatwa was created in Egypt to discuss the question of
"whether Muslims were permitted to drink Coca-Cola and Pepsi cola."[73] The
fatwa states: "According to the Muslim Hanefite, Shafi'ite, etc., the rule in
Islamic law of forbidding or allowing foods and beverages is based on the
presumption that such things are permitted unless it can be shown that they
are forbidden on the basis of the Qur'an."[73] The Muslim jurists stated that,
unless the Qu'ran specifically prohibits the consumption of a particular
product, it is permissible to consume. Another clause was discussed, whereby
the same rules apply if a person is unaware of the condition or ingredients of
the item in question

Name Launched
Coca-Cola

Discontinued

1886

Notes

The original version of Coca-Cola.

Caffeine-Free Coca-Cola

1983

The caffeine free version of Coca-Cola.

Coca-Cola Cherry 1985

Was available in Canada starting in 1996.
Called "Cherry Coca-Cola (Cherry Coke)" in North America until 2006.
New Coke/"Coca-Cola II" 1985 2002 Was still available in Yap and American
Samoa[citation needed]
Coca-Cola with Lemon

2001 2005 Available in:

Australia, American Samoa, Austria, Belgium, Brazil, China, Denmark,

Federation of Bosnia and Herzegovina, Finland, France, Germany, Hong Kong,
Iceland, Korea, Luxembourg, Macau, Malaysia, Mongolia, Netherlands, New
Caledonia, New Zealand, Runion, Singapore, Spain, Switzerland, Taiwan,
Tunisia, United Kingdom, United States, and West Bank-Gaza

Coca-Cola Vanilla

2002; 2007; 2013 2005; Available in: Austria, Australia,

China, Czech Republic, Finland, Germany, Hong Kong, New Zealand, Malaysia,
Slovakia, South-Africa, Sweden, United Kingdom and United States. It was
reintroduced in June 2007 by popular demand.
Coca-Cola with Lime
2005
Available in Belgium, Netherlands,
Singapore, Canada, the United Kingdom, and the United States.
Coca-Cola Raspberry
June 2005
End of 2005 Was only available in New
Zealand. Currently available in the United States in Coca-Cola Freestyle
fountain since 2009.
Coca-Cola Black Cherry Vanilla
Vanilla Coke in June 2007

2006 Middle of 2007

Was replaced by

Coca-Cola Blk
2006 Beginning of 2008 Only available in the United
States, France, Canada, Czech Republic, Bosnia and Herzegovina, Bulgaria
and Lithuania
Coca-Cola Citra
2006
New Zealand and Japan.

Only available in Bosnia and Herzegovina,

Coca-Cola Orange 2007

Was available in the United Kingdom and
Gibraltar for a limited time. In Germany, Austria and Switzerland it's sold
under the label Mezzo Mix. Currently available in Coca-Cola Freestyle fountain
outlets in the United States since 2009.
Coca-Cola Life

2013

Only available in Chile and Argentina.

Logo design
The Coca-Cola logo was created by John Pemberton's bookkeeper, Frank
Mason Robinson, in 1885.[74] Robinson came up with the name and chose
the logo's distinctive cursive script. The typeface used, known as Spencerian
script, was developed in the mid-19th century and was the dominant form of
formal handwriting in the United States during that period.

Robinson also played a significant role in early Coca-Cola advertising. His

promotional suggestions to Pemberton included giving away thousands of
free drink coupons and plastering the city of Atlanta with publicity banners
and streetcar signs.[75]

Contour bottle design

"Coke bottle" redirects here. For the song, see Coke Bottle (song).

The Coca-Cola bottle, called the "contour bottle" within the company, was
created by bottle designer Earl R. Dean. In 1915, the Coca-Cola Company
launched a competition among its bottle suppliers to create a new bottle for
their beverage that would distinguish it from other beverage bottles, "a bottle
which a person could recognize even if they felt it in the dark, and so shaped
that, even if broken, a person could tell at a glance what it was."[76]

Chapman J. Root, president of the Root Glass Company of Terre Haute,

Indiana, turned the project over to members of his supervisory staff, including
company auditor T. Clyde Edwards, plant superintendent Alexander
Samuelsson, and Earl R. Dean, bottle designer and supervisor of the bottle
molding room. Root and his subordinates decided to base the bottle's design
on one of the soda's two ingredients, the coca leaf or the kola nut, but were
unaware of what either ingredient looked like. Dean and Edwards went to the
Emeline Fairbanks Memorial Library and were unable to find any information
about coca or kola. Instead, Dean was inspired by a picture of the gourdshaped cocoa pod in the Encyclopdia Britannica. Dean made a rough sketch
of the pod and returned to the plant to show Root. He explained to Root how
he could transform the shape of the pod into a bottle. Root gave Dean his
approval.[76]

Faced with the upcoming scheduled maintenance of the mold-making

machinery, over the next 24 hours Dean sketched out a concept drawing
which was approved by Root the next morning. Dean then proceeded to
create a bottle mold and produced a small number of bottles before the
glass-molding machinery was turned off.[77]

Chapman Root approved the prototype bottle and a design patent was issued
on the bottle in November 1915. The prototype never made it to production
since its middle diameter was larger than its base, making it unstable on
conveyor belts. Dean resolved this issue by decreasing the bottle's middle
diameter. During the 1916 bottler's convention, Dean's contour bottle was
chosen over other entries and was on the market the same year. By 1920, the
contour bottle became the standard for the Coca-Cola Company. Today, the
contour Coca-Cola bottle is one of the most recognized packages on the
planet..."even in the dark!".[28]

As a reward for his efforts, Dean was offered a choice between a $500 bonus

or a lifetime job at the Root Glass Company. He chose the lifetime job and
kept it until the Owens-Illinois Glass Company bought out the Root Glass
Company in the mid-1930s. Dean went on to work in other Midwestern glass
factories.[citation needed]

One alternative depiction has Raymond Loewy as the inventor of the unique
design, but, while Loewy did serve as a designer of Coke cans and bottles in
later years, he was in the French Army the year the bottle was invented and
did not emigrate to the United States until 1919. Others have attributed
inspiration for the design not to the cocoa pod, but to a Victorian hooped
dress.[78]

In 1944, Associate Justice Roger J. Traynor of the Supreme Court of California

took advantage of a case involving a waitress injured by an exploding CocaCola bottle to articulate the doctrine of strict liability for defective products.
Traynor's concurring opinion in Escola v. Coca-Cola Bottling Co. is widely
recognized as a landmark case in U.S. law today.[79]

In 2007, the company's logo on cans and bottles changed. The cans and
bottles retained the red color and familiar typeface, but the design was
simplified, leaving only the logo and a plain white swirl (the "dynamic
ribbon").[citation needed]

Types

The classic Coca-Cola contour bottle design

Earl R. Dean's original 1915 concept drawing of the contour Coca-Cola bottle

The prototype never made it to production since its middle diameter was
larger than its base, making it unstable on conveyor belts.

Two Chinese Coke bottles, a 200 ml glass bottle, which is becoming less
common, and a 300 ml plastic bottle that is now widely available.
Designer bottles
Karl Lagerfeld is the latest designer to have created a collection of aluminum
bottles for Coca-Cola. Lagerfeld is not the first fashion designer to create a
special version of the famous Coca-Cola Contour bottle. A number of other
limited edition bottles by fashion designers for Coca Cola Light soda have
been created in the last few years.

In 2009, in Italy, Coca-Cola Light had a Tribute to Fashion to celebrate 100

years of the recognizable contour bottle. Well known Italian designers Alberta
Ferretti, Blumarine, Etro, Fendi, Marni, Missoni, Moschino, and Versace each
designed limited edition bottles.[80]

Competitors
Pepsi, the flagship product of PepsiCo, The Coca-Cola Company's main rival in
the soft drink industry, is usually second to Coke in sales, and outsells CocaCola in some markets. RC Cola, now owned by the Dr Pepper Snapple Group,
the third largest soft drink manufacturer, is also widely available.[citation
needed]

Around the world, many local brands compete with Coke. In South and
Central America Kola Real, known as Big Cola in Mexico, is a growing
competitor to Coca-Cola.[81] On the French island of Corsica, Corsica Cola,
made by brewers of the local Pietra beer, is a growing competitor to CocaCola. In the French region of Brittany, Breizh Cola is available. In Peru, Inca
Kola outsells Coca-Cola, which led The Coca-Cola Company to purchase the
brand in 1999. In Sweden, Julmust outsells Coca-Cola during the Christmas
season.[82] In Scotland, the locally produced Irn-Bru was more popular than
Coca-Cola until 2005, when Coca-Cola and Diet Coke began to outpace its
sales.[83]

In India, Coca-Cola ranked third behind the leader, Pepsi-Cola, and local drink

Thums Up. The Coca-Cola Company purchased Thums Up in 1993.[84] As of

2004, Coca-Cola held a 60.9% market-share in India.[85] Tropicola, a
domestic drink, is served in Cuba instead of Coca-Cola, due to a United States
embargo. French brand Mecca Cola and British brand Qibla Cola are
competitors to Coca-Cola in the Middle East.[citation needed]

In Turkey, Cola Turka, in Iran and the Middle East, Zam Zam Cola and Parsi
Cola, in some parts of China, China Cola, in Slovenia, Cockta and the
inexpensive Mercator Cola, sold only in the country's biggest supermarket
chain, Mercator, are some of the brand's competitors. Classiko Cola, made by
Tiko Group, the largest manufacturing company in Madagascar, is a serious
competitor to Coca-Cola in many regions. Laranjada is the top-selling soft
drink on Madeira.[citation needed]

Advertising
See also: Coca-Cola slogans

An 1890s advertisement showing model Hilda Clark in formal 19th century

attire. The ad is titled Drink Coca-Cola 5. (US).

Coca-Cola ghost sign in Fort Dodge, Iowa. Older Coca-Cola ghosts behind
Borax and telephone ads.
Coca-Cola's advertising has significantly affected American culture, and it is
frequently credited with inventing the modern image of Santa Claus as an old
man in a red-and-white suit. Although the company did start using the redand-white Santa image in the 1930s, with its winter advertising campaigns
illustrated by Haddon Sundblom, the motif was already common.[86][87]
Coca-Cola was not even the first soft drink company to use the modern image
of Santa Claus in its advertising: White Rock Beverages used Santa in
advertisements for its ginger ale in 1923, after first using him to sell mineral
water in 1915.[88][89] Before Santa Claus, Coca-Cola relied on images of
smartly dressed young women to sell its beverages. Coca-Cola's first such
advertisement appeared in 1895, featuring the young Bostonian actress Hilda
Clark as its spokeswoman.

1941 saw the first use of the nickname "Coke" as an official trademark for the

product, with a series of advertisements informing consumers that "Coke

means Coca-Cola".[90] In 1971 a song from a Coca-Cola commercial called
"I'd Like to Teach the World to Sing", produced by Billy Davis, became a hit
single.

Coca-Cola sales booth on the Cape Verde island of Fogo in 2004.

Coke advertisement 2013

Coke's advertising is pervasive, as one of Woodruff's stated goals was to
ensure that everyone on Earth drank Coca-Cola as their preferred beverage.
This is especially true in southern areas of the United States, such as Atlanta,
where Coke was born.

Some Coca-Cola television commercials between 1960 through 1986 were

written and produced by former Atlanta radio veteran Don Naylor (WGST
19361950, WAGA 19511959) during his career as a producer for the
McCann Erickson advertising agency. Many of these early television
commercials for Coca-Cola featured movie stars, sports heroes and popular
singers.

During the 1980s, Pepsi-Cola ran a series of television advertisements

showing people participating in taste tests demonstrating that, according to
the commercials, "fifty percent of the participants who said they preferred
Coke actually chose the Pepsi." Statisticians pointed out the problematic
nature of a 50/50 result: most likely, the taste tests showed that in blind
tests, most people cannot tell the difference between Pepsi and Coke. CocaCola ran ads to combat Pepsi's ads in an incident sometimes referred to as
the cola wars; one of Coke's ads compared the so-called Pepsi challenge to
two chimpanzees deciding which tennis ball was furrier. Thereafter, Coca-Cola
regained its leadership in the market.

Selena was a spokesperson for Coca-Cola from 1989 till the time of her death.
She filmed three commercials for the company. During 1994, to
commemorate her five years with the company, Coca-Cola issued special
Selena coke bottles.[91]

The Coca-Cola Company purchased Columbia Pictures in 1982, and began

inserting Coke-product images into many of its films. After a few early
successes during Coca-Cola's ownership, Columbia began to under-perform,
and the studio was sold to Sony in 1989.

Coca-Cola has gone through a number of different advertising slogans in its

long history, including "The pause that refreshes," "I'd like to buy the world a
Coke," and "Coke is it" (see Coca-Cola slogans).

In 2006, Coca-Cola introduced My Coke Rewards, a customer loyalty

campaign where consumers earn points by entering codes from specially
marked packages of Coca-Cola products into a website. These points can be
redeemed for various prizes or sweepstakes entries.[92]

In Australia in 2011, Coca-Cola began the "share a Coke" campaign, where

the Coca-Cola logo was replaced on the bottles and replaced with first names.
Coca-Cola used the 150 most popular names in Australia to print on the
bottles.[93][94][95] The campaign was paired with a website page, Facebook
page and an online "share a virtual Coke". The same campaign was
introduced to Coca-Cola, Diet Coke & Coke Zero bottles and cans in the UK in
2013.[96][97]

Coca-Cola has also advertised its product to be consumed as a breakfast

beverage, instead of coffee or tea for the morning caffeine.[98][99]

Holiday campaigns

A Freightliner Coca-Cola Christmas truck in Dresden, Germany.

The "Holidays are coming!" advertisement features a train of red delivery
trucks, emblazoned with the Coca-Cola name and decorated with Christmas
lights, driving through a snowy landscape and causing everything that they
pass to light up and people to watch as they pass through.[100]

The advertisement fell into disuse in 2001, as the Coca-Cola company

restructured its advertising campaigns so that advertising around the world
was produced locally in each country, rather than centrally in the company's
headquarters in Atlanta, Georgia.[101] In 2007, the company brought back
the campaign after, according to the company, many consumers telephoned
its information center saying that they considered it to mark the beginning of
Christmas.[100] The advertisement was created by U.S. advertising agency
Doner, and has been part of the company's global advertising campaign for
many years.[102]

Keith Law, a producer and writer of commercials for Belfast CityBeat, was not
convinced by Coca-Cola's reintroduction of the advertisement in 2007, saying
that "I don't think there's anything Christmassy about HGVs and the
commercial is too generic."[103]

In 2001, singer Melanie Thornton recorded the campaign's advertising jingle

as a single, Wonderful Dream (Holidays are Coming), which entered the popmusic charts in Germany at no. 9.[104][105] In 2005, Coca-Cola expanded
the advertising campaign to radio, employing several variations of the jingle.
[106]

In 2011, Coca-Cola launched a campaign for the Indian holiday Diwali. The
campaign included commercials, a song and an integration with Shah Rukh
Khans film Ra.One.[107][108][109]

Sports sponsorship

1952 Summer Olympics in Helsinki. Coca-Cola vending point

Coca-Cola was the first commercial sponsor of the Olympic games, at the
1928 games in Amsterdam, and has been an Olympics sponsor ever since.
[110] This corporate sponsorship included the 1996 Summer Olympics hosted
in Atlanta, which allowed Coca-Cola to spotlight its hometown. Most recently,
Coca-Cola has released localized commercials for the 2010 Winter Olympics
in Vancouver; one Canadian commercial referred to Canada's hockey heritage
and was modified after Canada won the gold medal game on February 28,
2010 by changing the ending line of the commercial to say "Now they know

whose game they're playing".[111]

Since 1978, Coca-Cola has sponsored the FIFA World Cup, and other
competitions organised by FIFA. One FIFA tournament trophy, the FIFA World
Youth Championship from Tunisia in 1977 to Malaysia in 1997, was called
"FIFA Coca Cola Cup".[112] In addition, Coca-Cola sponsors the annual
Coca-Cola 600 and Coke Zero 400 for the NASCAR Sprint Cup Series at
Charlotte Motor Speedway in Concord, North Carolina and Daytona
International Speedway in Daytona, Florida.

Coca-Cola has a long history of sports marketing relationships, which over the
years have included Major League Baseball, the National Football League, the
National Basketball Association, and the National Hockey League, as well as
with many teams within those leagues. Coca-Cola has had a longtime
relationship with the NFL's Pittsburgh Steelers, due in part to the now-famous
1979 television commercial featuring "Mean Joe" Greene, leading to the two
opening the Coca-Cola Great Hall at Heinz Field in 2001 and a more recent
Coca-Cola Zero commercial featuring Troy Polamalu.

Coca-Cola is the official soft drink of many collegiate football teams

throughout the nation, partly due to Coca-Cola providing those schools with
upgraded athletic facilities in exchange for Coca-Cola's sponsorship. This is
especially prevalent at the high school level, which is more dependent on
such contracts due to tighter budgets.

Coca-Cola was one of the official sponsors of the 1996 Cricket World Cup held
on the Indian subcontinent. Coca Cola is also one of the associate sponsor of
Delhi Daredevils in Indian Premier League.

In England, Coca-Cola was the main sponsor of The Football League between
2004 and 2010, a name given to the three professional divisions below the
Premier League in football (soccer). In 2005, Coca-Cola launched a
competition for the 72 clubs of the football league it was called "Win a
Player". This allowed fans to place one vote per day for their favorite club,
with one entry being chosen at random earning 250,000 for the club; this
was repeated in 2006. The "Win A Player" competition was very controversial,
as at the end of the 2 competitions, Leeds United A.F.C. had the most votes

by more than double, yet they did not win any money to spend on a new
player for the club. In 2007, the competition changed to "Buy a Player". This
competition allowed fans to buy a bottle of Coca-Cola or Coca-Cola Zero and
submit the code on the wrapper on the Coca-Cola website. This code could
then earn anything from 50p to 100,000 for a club of their choice. This
competition was favored over the old "Win a Player" competition, as it
allowed all clubs to win some money. Between 1992 and 1998, Coca-Cola was
the title sponsor of the Football League Cup (Coca-Cola Cup), the secondary
cup tournament of England.

Between 1994 and 1997, Coca-Cola was also the title sponsor of the Scottish
League Cup, renaming it the Coca-Cola Cup like its English counterpart.

Introduced March 1, 2010, in Canada, to celebrate the 2010 Winter Olympics,

Coca Cola sold gold colored cans in packs of 12 355 mL each, in select stores.
[113]

In 2012, Coca-Cola (Philippines) hosted/sponso

PepsiCo Inc. is an American multinational food and beverage corporation

headquartered in Purchase, New York, United States, with interests in the
manufacturing, marketing and distribution of grain-based snack foods,
beverages, and other products. PepsiCo was formed in 1965 with the merger
of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since expanded
from its namesake product Pepsi to a broader range of food and beverage
brands, the largest of which includes an acquisition of Tropicana in 1998 and
a merger with Quaker Oats in 2001which added the Gatorade brand to its
portfolio.

As of January 26, 2012, 22 of PepsiCo's brands generated retail sales of more

than $1 billion apiece,[4] and the company's products were distributed across
more than 200 countries, resulting in annual net revenues of $43.3 billion.
Based on net revenue, PepsiCo is the second largest food and beverage
business in the world. Within North America, PepsiCo is ranked (by net
revenue) as the largest food and beverage business.

Indra Krishnamurthy Nooyi has been the chief executive of PepsiCo since
2006, and the company employed approximately 274,000 people worldwide
as of 2013. The company's beverage distribution and bottling is conducted by
PepsiCo as well as by licensed bottlers in certain regions.

Contents [hide]
1 History
1.1 Origins
1.2 Acquisitions and divestments
1.3 Competition
2 Products and brands
3 Areas of business
3.1 PepsiCo Americas Foods
3.2 PepsiCo Americas Beverages
3.3 PepsiCo Europe
3.4 PepsiCo Asia, Middle East & Africa
4 Corporate governance
4.1 Headquarters
4.2 Charitable activities
5 Environmental record and product nutrition
5.1 Environmental record
5.2 Product nutrition

6 See also
7 References
8 External links
History[edit]

This article's factual accuracy may be compromised due to out-of-date

information. Please update this article to reflect recent events or newly
available information. (May 2013)
Origins[edit]
The recipe for Pepsi (the soft drink), was first developed in the 1880s by a
pharmacist and industrialist from New Bern, North Carolina, named Caleb
Bradhamwho called it "Pepsi-Cola" in 1898. As the cola developed in
popularity, he created the Pepsi-Cola Company in 1902 and registered a
patent for his recipe in 1903.[5] The Pepsi-Cola Company was first
incorporated in the state of Delaware in 1919.[6] The company went
bankrupt in 1931 and on June 8 of that year, the trademark and syrup recipe
were purchased by Charles Guth who owned a syrup manufacturing business
in Baltimore, Maryland. Guth was also the president of Loft, Incorporated, a
leading candy manufacturer, and he used the company's labs and chemists
to reformulate the syrup. He further contracted to stock the soda in Loft's
large chain of candy shops and restaurants, which were known for their soda
fountains, used Loft resources to promote Pepsi, and moved the soda
company to a location close by Loft's own facilities in New York City. In 1935,
the shareholders of Loft sued Guth for his 91% stake of Pepsi-Cola Company
in the landmark case Guth v. Loft Inc. Loft won the suit and on May 29, 1941
formally absorbed Pepsi into Loft, which was then re-branded as Pepsi-Cola
Company that same year. (Loft restaurants and candy stores were spun off at
this time.) In the early 1960s, the company's product lines expanded with the
creation of Diet Pepsi and purchase of Mountain Dew.[7]

In 1965, the Pepsi-Cola Company merged with Frito-Lay, Inc. to become

PepsiCo, Inc., the company it is known as at present. At the time of its
foundation, PepsiCo was incorporated in the state of Delaware and
headquartered in Manhattan, New York. The company's headquarters were
relocated to its still-current location of Purchase, New York in 1970,[8] and in
1986 PepsiCo was reincorporated in the state of North Carolina.[6]

PepsiCo was the first company to stamp expiration dates, starting in March
1994.[citation needed]

Acquisitions and divestments[edit]

Between the late-1970s and the mid-1990s, PepsiCo expanded via acquisition
of businesses outside of its core focus of packaged food and beverage
brands; however it exited these non-core business lines largely in 1997,
selling some, and spinning off others into a new company named Tricon
Global Restaurants, which later became known as Yum! Brand, Inc.[9] PepsiCo
also previously owned several other brands that it later sold so it could focus
on its primary snack food and beverage lines, according to investment
analysts reporting on the divestments in 1997.[10] Brands formerly owned by
PepsiCo include: Pizza Hut,[11] Taco Bell,[11] KFC,[11] Hot 'n Now,[12] East
Side Mario's,[13] D'Angelo Sandwich Shops,[14] Chevys Fresh Mex, California
Pizza Kitchen,[15] Stolichnaya[16] (via licensed agreement), Wilson Sporting
Goods[17] and North American Van Lines.[18]

The divestments concluding in 1997 were followed by multiple large-scale

acquisitions, as PepsiCo began to extend its operations beyond soft drinks
and snack foods into other lines of foods and beverages. PepsiCo purchased
the orange juice company Tropicana Products in 1998,[19] and merged with
Quaker Oats Company in 2001,[20] adding with it the Gatorade sports drink
line and other Quaker Oats brands such as Chewy Granola Bars and Aunt
Jemima, among others.[21]

In August 2009, PepsiCo made a $7 billion offer to acquire the two largest
bottlers of its products in North America: Pepsi Bottling Group and
PepsiAmericas. In 2010 this acquisition was completed, resulting in the
formation of a new wholly owned subsidiary of PepsiCo, Pepsi Beverages
Company.[22] In February 2011, the company made its largest international
acquisition by purchasing a two-thirds (majority) stake in Wimm-Bill-Dann
Foods, a Russian food company that produces milk, yogurt, fruit juices, and
dairy products.[23] When it acquired the remaining 23% stake of Wimm-BillDann Foods in October 2011, PepsiCo became the largest food and beverage
company in Russia.[24][25]

In July 2012, PepsiCo announced a joint venture with the Theo Muller Group
which was named Muller Quaker Dairy. This marked PepsiCo's first entry into

the dairy space in the US. [26]

Competition[edit]
The Coca-Cola Company has historically been considered PepsiCo's primary
competitor in the beverage market,[27] and in December 2005, PepsiCo
surpassed The Coca-Cola Company in market value for the first time in 112
years since both companies began to compete. In 2009, The Coca-Cola
Company held a higher market share in carbonated soft drink sales within the
U.S.[28] In the same year, PepsiCo maintained a higher share of the U.S.
refreshment beverage market, however, reflecting the differences in product
lines between the two companies.[28] As a result of mergers, acquisitions
and partnerships pursued by PepsiCo in the 1990s and 2000s, its business
has shifted to include a broader product base, including foods, snacks and
beverages. The majority of PepsiCo's revenues no longer come from the
production and sale of carbonated soft drinks.[29] Beverages accounted for
less than 50 percent of its total revenue in 2009. In the same year, slightly
more than 60 percent of PepsiCo's beverage sales came from its primary noncarbonated brands, namely Gatorade and Tropicana.[28]

PepsiCo's Frito-Lay and Quaker Oats brands hold a significant share of the
U.S. snack food market, accounting for approximately 39 percent of U.S.
snack food sales in 2009.[28] One of PepsiCo's primary competitors in the
snack food market overall is Kraft Foods, which in the same year held 11
percent of the U.S. snack market share.[28] Other competitors for soda are
RC Cola, Cola Turka, Kola Real, Inca Kola, Zam Zam Cola, Mecca-Cola, Virgin
Cola, Parsi Cola, Qibla Cola, Evoca Cola, Corsica Cola, Breizh Cola, Afri Cola.

Products and brands[edit]

Largest PepsiCo Brands (based on 2009 retail sales)
Brand
Pepsi

Mountain Dew

Lay's potato chips

Gatorade

Diet Pepsi

Tropicana beverages

7 Up (outside U.S.)

Doritos tortilla chips

Lipton teas (PepsiCo/Unilever partnership)

Quaker foods and snacks

Cheetos

Mirinda

Ruffles potato chips

Aquafina bottled water

Pepsi Max

Tostitos tortilla chips

Sierra Mist

Fritos corn chips

Walkers potato crisps

Source: 2009 Annual Report[30]

$15b
$20b

$0

$5b

$10b

PepsiCo's product mix as of 2012 (based on worldwide net revenue) consists

of 63 percent foods, and 37 percent beverages.[28] On a worldwide basis, the
company's current products lines include several hundred brands that in
2009 were estimated to have generated approximately $108 billion in
cumulative annual retail sales.[30]

The primary identifier of a food and beverage industry main brand is annual
sales over $1 billion. As of 2009, 21 PepsiCo brands met that mark: Pepsi,
Mountain Dew, Lay's, Gatorade, Tropicana, 7 Up, Doritos, Lipton Teas, Quaker
Foods, Cheetos, Mirinda, Ruffles, Aquafina, Pepsi Max, Tostitos, Sierra Mist,
Fritos, and Walkers.[30][31]

Areas of business[edit]
The structure of PepsiCo's global operations has shifted multiple times in its
history as a result of international expansion, and as of 2010 it is separated
into four main divisions:[32] PepsiCo Americas Foods, PepsiCo Americas
Beverages, PepsiCo Europe, and PepsiCo Asia, Middle East and Africa. As of
2009, 71 percent of the company's net revenues came from North and South
America, 16 percent from Europe and 13 percent from Asia, the Middle East
and Africa.[33] Approximately 285,000 people are employed by PepsiCo
worldwide as of 2010.[34]

PepsiCo Americas Foods[edit]

PepsiCo Americas Foods consists of the company's food and snack operations
in North and South America. This operating division is further segmented into
Frito-Lay North America, Quaker Foods & Snacks, Sabritas, Gamesa, and Latin
America Foods. Food and snack sales in North and South America combined
contributed 48 percent of PepsiCo's net revenue in 2009.Until November
2009, Christopher Furman, President of Ventura Foods Inc., occupied the
position of Food Services CEO.[30][35][36]

Frito-Lay North America, the result of a merger in 1961 between the Frito
Company and the H.W. Lay Company, produces the top selling line of snack
foods in the U.S. Its main brands in the U.S., Canada and Mexico and include
Lay's and Ruffles potato chips, Doritos tortilla chips, Tostitos tortilla chips and
dips, Cheetos cheese flavored snacks, Fritos corn chips, Rold Gold pretzels,
Sun Chips and Cracker Jack popcorn. Products made by this division are sold
to independent distributors and retailers, and are transported from Frito-Lay's
manufacturing plants to distribution centers, principally in vehicles owned
and operated by the company.[37]

Quaker Foods North America, created following PepsiCo's acquisition of the

Quaker Oats Company in 2001, manufactures, markets and sells Quaker
Oatmeal, Rice-A-Roni, Cap'n Crunch and Life cereals, as well as Near East side
dishes within North America. This division also owns and produces the Aunt
Jemima brand, which as of 2009 was the top selling line of syrups and
pancake mixes within this region.[28][38]

Sabritas and Gamesa are two of PepsiCo's food and snack business lines
headquartered in Mexico, and they were acquired by PepsiCo in 1966 and
1990, respectively. Sabritas markets Frito-Lay products in Mexico, including
local brands such as Poffets, Rancheritos, Crujitos and Sabritones. Gamesa is
the largest manufacturer of cookies in Mexico, distributing brands such as
Emperador, Arcoiris and Maras Gamesa.[39]

PepsiCo's Latin America Foods (Spanish: Snacks Amrica Latina) operations

market and sell primarily Quaker- and Frito-Lay-branded snack foods within
Central and South America, including Argentina, Brazil, Peru and other
countries in this region.[40] Snacks Amrica Latina purchased Peruvian
company Karinto S.A.C. including its production company Bocaditas
Nacionales (with three production facilities in Peru) from the Hayashida family

of Lima in 2009, adding the Karito brand to its product line, including Cuates,
Fripapas, and Papi Frits.[41]

PepsiCo Americas Beverages[edit]

This division contributed 23 percent of PepsiCo's net revenue as of 2009,[30]
and involves the manufacture (and in some cases licensing), marketing and
sales of both carbonated and non-carbonated beverages in North, Central
and South America.[42] The main brands distributed under this division
include Pepsi, Mountain Dew, Gatorade, 7 Up (outside the U.S.), Tropicana
Pure Premium orange juice, Sierra Mist, SoBe Lifewater, Tropicana juice
drinks, AMP Energy, Naked Juice and Izze. Aquafina, the company's bottled
water brand, is also marketed and licensed through PepsiCo Americas
Beverages.[43]

PepsiCo also has formed partnerships with several beverage brands it does
not own, in order to distribute or market them with its own brands.[43] As of
2010, its partnerships include: Starbucks (Frappuccino, DoubleShot and Iced
Coffee), Unilever's Lipton brand (Lipton Brisk and Lipton Iced Tea), and Dole
(licensed juices and drinks).

The company started a new market strategy to sell their Pepsi Cola product in
Mexico, stating that about one third of the population has difficulty
pronouncing "Pepsi". They started manufacturing and selling their product
under the label 'Pcsi', the advertisement campaign features the Mexican
soccer celebrity Cuauhtmoc Blanco. This is not the first time it has
happened, back in 2009, PepsiCo used the same strategy successfully in
Argentina.[44]

PepsiCo Europe[edit]
PepsiCo began to expand its distribution in Europe in the 1980s, and in 2009
it made up 16 percent of the company's global net revenue.[30] Unlike
PepsiCo's Americas business segments, both foods and beverages are
manufactured and marketed under one umbrella division in this region,
known as PepsiCo Europe. The primary brands sold by PepsiCo in Europe
include Pepsi-Cola beverages, Frito-Lay snacks, Tropicana juices and Quaker
food products, as well as regional brands unique to Europe such as Walkers
crisps, Copella, Paw Ridge, Snack-a-Jack, Duyvis and others. PepsiCo also

distributes the soft drink 7UP in Europe via license agreement.[43]

PepsiCo's European presence expanded in Russia in 2009 as the company

announced a $1B investment,[45] and with its acquisition of Russian juice
and dairy product brand Wimm-Bill-Dann Foods in December 2010 and
Lebedyansky juice producer in March 2008.[46]

PepsiCo Asia, Middle East & Africa[edit]

The most recently created operating division of PepsiCo covers Asia, the
Middle East and Africa.[29] In addition to the production and sales of several
worldwide Pepsi-Cola, Quaker Foods and Frito-Lay beverage and food product
lines (including Pepsi and Doritos), this segment of PepsiCo's business
markets regional brands such as Mirinda, Kurkure and Red Rock Deli, among
others.[43] While PepsiCo owns its own manufacturing and distribution
facilities in certain parts of these regions, more of this production is
conducted via alternate means such as licensing (which it does with
Aquafina), contract manufacturing, joint ventures and affiliate operations.
PepsiCo's businesses in these regions, as of 2009, contributed 13 percent to
the company's net revenue worldwide.[30] In August 2012, PepsiCo signed an
agreement with a local Myanmar distributor to sell its softdrinks after a 15year break to re-enter the country.[47]

Corporate governance[edit]
Headquartered in Purchase, New York, with research and development
headquarters in Valhalla, New York, PepsiCo's Chairman and CEO is Indra
Nooyi.[48] The board of directors is composed of eleven outside directors as
of 2010, including Ray Lee Hunt, Shona Brown, Victor Dzau, Arthur C.
Martinez, Sharon Percy Rockefeller, Daniel Vasella, Dina Dublon, Ian M. Cook,
Alberto Ibargen, James J. Schiro and Lloyd G. Trotter. Former top executives
at PepsiCo include Steven Reinemund, Roger Enrico, D. Wayne Calloway, John
Sculley, Michael H. Jordan, Donald M. Kendall, Christopher A. Sinclair and
Alfred Steele.

On October 1, 2006, former Chief Financial Officer and President Indra Nooyi
replaced Steve Reinemund as Chief Executive Officer. Nooyi remained as the
corporation's president, and became Chairman of the Board in May 2007,
later (in 2010) being named No.1 on Fortune's list of the "50 Most Powerful

Women"[49] and No.6 on Forbes' list of the "World's 100 Most Powerful
Women".[50] PepsiCo received a 100 percent rating on the Corporate Equality
Index released by the LGBT-advocate group Human Rights Campaign starting
in 2004, the third year of the report.[51]

Headquarters[edit]
Main article: Donald M. Kendall Sculpture Gardens
The PepsiCo headquarters are located in the neighborhood of Purchase, New
York, in the town of Harrison, New York. It was one of the last architectural
works by Edward Durell Stone. It consists of seven three-story buildings. Each
building is connected to its neighbor through a corner. The property includes
the Donald M. Kendall Sculpture Gardens with 45 contemporary sculptures
open to the public. Works include those of Alexander Calder, Henry Moore,
and Auguste Rodin. Westchester Magazine stated "The buildings square
blocks rise from the ground into low, inverted ziggurats, with each of the
three floors having strips of dark windows; patterned pre-cast concrete panels
add texture to the exterior surfaces." In 2010 the magazine ranked the
building as one of the ten most beautiful buildings in Westchester County.[52]

At one time PepsiCo had its headquarters in 500 Park Avenue in Midtown
Manhattan, New York City.[53] In 1956 PepsiCo paid $2 million for the original
building.[54] PepsiCo built the new 500 Park Avenue in 1960.[55] In 1966,
Mayor of New York City John Lindsay started a private campaign to convince
PepsiCo to remain in New York City.[56] Six months later, the company
announced that it was moving to 112 acres (45 ha) of the Blind Brook Polo
Club in Westchester County.[57] After PepsiCo left the Manhattan building, it
became known as the Olivetti Building.[55]

Charitable activities[edit]

Headquarters of Pepsi-Cola Venezuela (ES)

PepsiCo has maintained a philanthropic program since 1962 called the
PepsiCo Foundation,[58] in which it primarily funds "nutrition and activity,
safe water and water usage efficiencies,[59] and education," according to the
foundation's website.[60] In 2009, $27.9 million was contributed through this
foundation, including grants to the United Way[61] and YMCA,[62] among

others.

In 2009, PepsiCo launched an initiative they call the Pepsi Refresh Project,[63]
in which individuals submit and vote on charitable and nonprofit
collaborations.[64] The main recipients of grants as part of the refresh project
are community organizations with a local focus and nonprofit organizations,
such as a high school in Michigan thatas a result of being selected in 2010
received $250,000 towards construction of a fitness room.[65] Following
the Gulf of Mexico oil spill in the spring of 2010, PepsiCo donated $1.3 million
to grant winners determined by popular vote.[66] As of October 2010, the
company had provided a cumulative total of $11.7 million in funding, spread
across 287 ideas of participant projects from 203 cities in North America.[67]
In late 2010, the refresh project was reported to be expanding to include
countries outside of North Ameri

Evaluation and comparison of PepsiCo and the Coca-cola company

Today Pepsi is a huge international and multibillion dollar soft-drink and snack
food company second only to Coca Cola. It is hardly what Caleb Bradley had
in mind when he created a soft drink formula in his North Carolina pharmacy
store in 1898. In its early days Bradley sold only the syrup needed to make
the Pepsi drink. Today we have countless choices of drinks and snacks all
under the Pepsi name.
Caleb Bradley patented his formula in 1902 and started making and selling it
out of his pharmacy. He had great success with it, and production increased
almost exponentially. During World War I sugar began to be rationed and
prices rose over 500%. Caleb had no choice but to declare bankruptcy and
sell his business to Roy C. Megargel, and INVESTMENT banker, in 1928. But
Megargel had very little luck with the company as well and in 1931, just three
years later declares bankruptcy himself.
A company by the name of Loft Inc. purchases most of the Pepsi shares and
becomes a major shareholder of the corporation. After reorganizing, Pepsi
begins to advertise on a massive scale. With the depression in full swing at

the time Pepsi begins to sell 12 oz bottles of its product for just 5 cents
compared to its competitor selling 6 oz bottle at the same price. It becomes
known as the poor mans drink.
It began to aggressively look to the international market, especially in Canada
and Mexico. In 1934 Pepsi was finally able to open its first distribution center
in an international market, Canada. From that point on the drink and the
name had nowhere to go but up. New products were added to its list such as
DIET Pepsi, Pepsi Free, etc.
In 1965 Pepsi joined forces with a large snake food industry know as Frito Lay.
Thanks to this merger the company was able to make for the first time $1
billion in sales, its first but certainly not its last. Pepsi also become purchasing
fast food restaurants such as Taco Bell, Kentucky Fried Chicken and Pizza Hut.
But in 1997 it spun off these fast food chains into another company.
Today Pepsi make over $40 billion a year and this number is increasing every
year. The brand name alone is worth over $12 billion which puts it in the top
20 most valuable names in the world. There seems to be no stopping this
giant in the soft drink industry, but every company has a rival and Pepsi has
some very powerful ones.
PepsiCo and The Coca Cola Company Performance
Ratio Comparisons: PepsiCo Inc
Fiscal Year 2009
Profitability
Growth
Cash Flow
Financial Health
Efficiency Ratios
Ratio Comparisons: The Coca Cola Company
Ratio Comparisons
Profitability
Growth
Cash Flow
Financial Health

Efficiency Ratios
Stock Charts: PepsiCo Inc
3 month STOCK chart
6 month STOCK chart
1 year stock chart
Stock Charts: The Coca Cola Company
3 month STOCK chart
6 month STOCK chart
1 year stock chart
Stock Prices: PepsiCo Inc
Stock Prices: The Coca Cola Company
Development: PepsiCo Inc
Product
Add more than 200 product variations a year to keep up with changes in
consumer taste
New Age beverages
SoBe No Fear (energy drink)
SoBe Synergy (targeted to school-aged children)
SoBe Fuerte (Hispanic MARKET)
Propel Fitness Water
Obesity concerns
Low-carb Doritos, Cheetos, and Tostitos
Health concerns
Natural and organic chips
Hispanic MARKETS

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Popular brands from a Mexican subsidiary (Sabritones Chile and Lime puffed
wheat snacks)
Culture
Pepsi Refresh Project Pepsi is awarding grants from $5,000 to $250,000 to
consumer-generated ideas that will make a positive impact in the world. The
program launched on January 13, 2010 and will award more than $20 million
in 2010 to move communities forward.
Aug 27, 2010 - CVS Pharmacy and Boundless Playgrounds Join the Refresh
Challenge to Support Children of All Abilities
Current Developments
Aug. 4, 2010 PepsiCo announces company is INVESTING USD $3 million over
next three years to create Agricultural Development Center of Peru (CEDAP),
which will develop new varieties of potatoes and other tubers and roots.
This is meant to develop new and healthier products and to encourage
commercial cultivation of these species in ways that preserve biodiversity
Aug 16, 2010 PepsiCo announces plan to INVEST USD $250 million in
Vietnam over next three years.
New INVESTMENT includes increasing manufacturing capacity, adding
marketplace equipment, further strengthening brands, and broadening
companys product portfolio via innovation
Market Differentiation Strategy
Industry-leading Nutrition Goals

Reduce the average saturated fat per serving in key global food brands in key
MARKETS by 15% by 2020
Reduce the average added sugar per serving in key global beverage brands
in key MARKETS by 25% by 2020
Reduce the average sodium serving in key global food brands in key
MARKETS by 25% by 2020
Increase whole grains, fruits and vegetables, nuts, seeds, and low-fat dairy in
its product portfolio
Environmental Goals
Provide access to safe water to three million people in developing countries
by the end of 2015
Reduce packaging weight by 350 million pounds by 2012
Work to eliminate all solid waste to landfills from PepsiCos production
facilities
Commit to an absolute reduction in greenhouse gas emissions across global
operations
Future
Pepsico hopes to revive Quaker with new products
Pepsi plans to cut sodium by one-fourth in key brands in five years, and cut
sugar per serving in drinks by 25 percent in the next 10 years.
Development: The Coca Cola Company
Product
CALORIE concerns
2006 - Enviga, negative CALORIE green tea drink
2007 Glaceau (Vitamin Water)
2009 90-calorie mini can (7.5 fl oz)
Culture
Live Positively Cokes project to help make a positive difference in the world
through sustainability with focuses on climate protection, balanced living,
education, and community

Give It Back Recycling Program Coca Cola is asking for its consumers to
return the cans and plastic bottles of Coke they buy in order to make
backpacks, t-shirts, rugs, etc.
Aug 24, 2010 - Coca-Cola workers strike in Bellevue
Sept 1, 2010 Strike announced at Edmonton Coca Cola factory
Current Developments
Sept 7, 2010 Coca Cola Enterprises plans to sell its North American business
to Coca Cola Co in the fourth quarter
Aug 30, 2010 - Coca-Cola West (Japan) to buy vegetable juice maker Qsai for
$421 million
Coca Cola Freestyle
A touch screen soda fountain with over 100 different Coca-Cola beverage
products and custom flavors.
Market Differentiation Strategy
????
Future
Coca Cola drinks in Japan made from Kale, a nutrition but not very tasty
vegetable, may turn up in stores

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Coca Cola buys major Russian juice producer Nidan

Company Comparison
In PepsiCos 2009 Annual Report to shareholders, it identifies a plethora of
competitors. Notable competitors include Dr. Pepper Snapple Group, Inc.,
Nestl, and Kellogg. However, no rivalry is longer or larger than the one
between PepsiCo and Coca-Cola. Not only are these two the first and second
largest food and beverage companies in the world, these two have a vested
interest in keeping the competition alive. In this industry, where margins and
market share determine profitability, MARKETING plays a vital role in bringing
in creating new loyal customers and maintaining the old ones. And both of
these companies have benefited from the marketing of the other.
Product Comparison
Its easy to compare these two companies given the similarity in their
products. Both have well-known brands for soda, sports drinks, juices, and
water. They both also see the benefit in vertically integrating their supply
chain. While PepsiCo chose to purchase its two largest bottlers, The CocaCola Company has continued to hold a large share in their bottling
companies. These companies compete on a product by product basis as is
detailed in the chart below. It is important to note that one key line is not
included, popular snacks. PepsiCo has acquired a multitude of brand named
snack companies including Frito-Lay while Coca-Cola while having over 3,000
different beverages sells only that, beverages. This has helped PepsiCo
diversify and increase its sales and MARKET compared to Coca-Cola.
PepsiCo
The Coca-Cola Company
Bottling
Acquired Pepsi Bottling Group and PepsiAmericas
Owns 34% share of Coca-Cola Enterprises and 32% share of Coca-Cola FEMSA
Soda
Pepsi, Mountain Dew, and Mug
Coca-Cola, Fanta, and Sprite
Sports Drink
Gatorade
Powerade

Orange Juice
Tropicana
Minute Maid
Water
Aquafina
Dasani and Evian
Size and Profitability Comparison
As much as PepsiCo tries to compete on the same grounds as The Coca-Cola
Company, for the time being Coca-Cola is still the leader in many ways
FINANCIALLY. For one, PepsiCo is significantly smaller than The Coca-Cola
Company. In 2009, PepsiCos Market Capitalization was only 80% of CocaColas. Furthermore, the Coca-Cola Company has continued to sell more
efficiently than PepsiCo. In 2009, all of Coca-Colas profit ratios were
significantly greater than PepsiCos. Perhaps this is partially explained by the
greater number of employees PepsiCo employees. PepsiCo is winning out on
top line growth however, with more than $10B in sales last year alone.
PepsiCo
The Coca-Cola Company
STOCK Ticker
PEP
KO
Headquarters
Purchase, NY
Atlanta, GA
2009 Number of Employees
203,000
92,800
2009 MARKET Capitalization
$103 B

$130 B
2009 Sales
$43.2 B
$31.0 B
2009 Gross Profit Margin
53.5%
64.2%
2009 Operating Margin
18.6%
26.6%
2009 Net Profit Margin
13.8%
22%
Investment Comparison
At first glance, PepsiCo and Coca-Cola may seem like they are about equal
when it comes to what stockholders are looking at. Shareholders want a
maximum return on their investment either through an increased stock price
or dividends. Given that PepsiCo and Coca-Cola are both seen as value
STOCKS by most investors, the amount they provide in dividends is of
significant importance. Given PepsiCos higher Dividends per Share in this
category regardless of how small is worth noting.

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(2009)
PepsiCo
The Coca-Cola Company
Dividends per Share
$1.77
$1.64
EPS
$3.86
$3.18
P/E
16.61
17.66
Qualitative Comparison
But a company is more than just its numbers. A companys qualitative
features like its core values and growth plans for the future are of equal
importance. Both PepsiCo and Coca-Cola are interested in expressing a
commitment to health, but they do it in significantly different ways. PepsiCos
interest in health is centered around sustainability. They highlight their three
commitments to human, environmental, and talent sustainability whereas
Coca-Cola takes a more human centric view on health. It is specifically trying
to promote a healthy lifestyle through education, nutrition information, and
exercise. Both are trying to fight the obesity epidemic and OFFER healthier
choices, but their ways vary.
The Decision to Invest
Industry Analysis
Before deciding whether or not to INVEST in PepsiCo, one must investigate if
now is the time to investigate in its industry. The difficulty in studying
PepsiCos industry is that it falls into a couple of industries. The Business &

Company Resource Center returned eight possible industries, but the most
salient one and the one PepsiCo aligns most with is the Bottled & Canned Soft
Drinks Industry.
The good news for PepsiCo is that the soft drinks industry is now and is
projected to remain extremely concentrated. PepsiCo, along with Coca-Cola,
are either the cause or effect of this trend and have helped lead the United
States to be the number producer and consumer of soft drinks. But this
market is heavily saturated, and the regions projected to be able to OFFER
the most growth in the next decade are the Asian and South America
markets. By targeting these groups and catering to their cultural
expectations, significant returns can still be made.
The biggest challenge for the industry going forward is addressing the
growing concern that soft drinks are causing an obesity epidemic. By offering
healthier alternatives, or perceived healthier alternatives such as DIET colas,
juices, and bottled water, this can be overcome. The significant investment
that Pepsi has made in its campaign to promote a healthier lifestyle will also
not go unnoticed.
The number one ingredient in soft drinks may become more difficult to
obtain. The supply of water, the largest ingredient in almost all of Pepsis
products, could become more strained as pollution and droughts continue to
plague the resource. Developing a plan to share and conserve this resource
and addressing all the growing concerns over its supply will be important for
Pepsi.
Management Analysis
No company can be successful long term without the right management
team. PepsiCos committed CEO has been with the company for almost two
decades in a variety of strategic and operational leadership positions. She
has a firm understanding of the industry as well the growth strategy that she
has been implementing for years.
Perhaps more important than what PepsiCos leadership is known for, is what
they arent known for. No member has gained public attention for unethical
FINANCIAL decisions or misdoings.
What else should be included here?
Expert Opinions
February 20, 2008 - While many companies saw business decline in the
fourth quarter, PepsiCo met expectations even after INVESTING heavily
abroad for growth. It posted a 17% gain in revenue and an 11% increase in
operating profit as core brands came through. The company had double-digit

growth in snacks and drinks in emerging MARKETS. (article from 2008)

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http://articles.moneycentral.msn.com/Investing/CompanyFocus/WhyPepsiCoSt
ockIsABuyNow.aspx
April 14, 2010 Coke or Pepsi: Which STOCK TO BUY?
The ability to leverage sales across a wider variety of products will be a
powerful driver for PepsiCo here and overseas.
This is referring to PepsiCo and snack items
http://articles.moneycentral.msn.com/learn-how-to-invest/coke-or-pepsiwhich-stock-to-buy.aspx

Find out more from UK Essays here:

http://www.ukessays.com/essays/business/comparison-of-pepsico-and-thecocacola-company-business-essay.php#ixzz3Dg9V4UZr

Pepsi is sweeter than coke, despite what labels on the bottles say about its
sugar percentage.

3. Coke has a vanillan chemical, which gives it a vanilla taste, while Pepsi

has a more citrus flavor.

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4. Pepsi is less carbonized than Coke, because it contains less CO2. Which
means that Coca-Cola drinks are more fizzy than Pepsi ones.

5. In order to compete with Coca-Cola, Pepsi created a new formula for their
Pepsi Challenge. It was a successful move, since people preferred the
distinguishable citrus taste of the less carbonated drink.

6. Coke has a larger salt percentage than Pepsi. While in a 240 ml serving
Pepsi contains 20mg sodium, Coke contains 33mg.

7. Pepsi contains more caffeine than Coca-Cola. So, if youre looking for
something to drink when you need a little bit more energy, you might find
Pepsi more appropriate.

The rivalry between Coca-Cola and Pepsi is legendary. Although the feud
really heated up with the Pepsi Challenge in 1975 which prompted CocaCola's horrific New Coke debacle the brands have been fighting each other
for more than a century.

And not just about product development. Things occasionally get personal,
which sometimes resonates in their marketing. Earlier this year, Pepsi went
after Coke's famed mascots, the polar bears and Santa.

The feud has even moved into outer space and raged over social media.

So how'd it become this way?

The folks at CnnTees put together an amazing infographic entitled "The Soda
Wars" that includes everything you'd ever want to know about the history of
Coca-Cola and Pepsi. Take a look:

Read more: http://www.businessinsider.com/soda-wars-coca-cola-pepsi-

history-infographic-2011-11?op=1#ixzz3DfyrMi6g

How dare you say that my behavior is unacceptable

So condescending unnecessarily critical
I have the tendency of getting very physical
So watch your step 'cause if I do you'll need a miracle

You drain me dry and make me wonder why I'm even here
This Double Vision I was seeing is finally clear
You want to stay but you know very well I want you gone
Not fit to fuckin' [CD cover says: "funkin'"] tread the ground that I'm walking
on

When it gets cold outside and you got nobody to love

You'll understand what I mean when I say
There's no way we're gonna give up
And like a little girl cries in the face of a monster that lives in her dreams
Is there anyone out there 'cause it's getting harder and harder to breathe
Is there anyone out there 'cause it's getting harder and harder to breathe

What you are doing is screwing things up inside my head

You should know better you never listened to a word I said
Clutching your pillow and writhing in a naked sweat
Hoping somebody someday will do you like I did

When it gets cold outside and you got nobody to love

You'll understand what I mean when I say
There's no way we're gonna give up
And like a little girl cries in the face of a monster that lives in her dreams

Is there anyone out there 'cause it's getting harder and harder to breathe
Is there anyone out there 'cause it's getting harder and harder to breathe

Does it kill
Does it burn
Is it painful to learn
That it's me that has all the control

Does it thrill
Does it sting
When you feel what I bring
And you wish that you had me to hold

When it gets cold outside and you got nobody to love

You'll understand what I mean when I say
There's no way we're gonna give up
And like a little girl cries in the face of a monster that lives in her dreams
Is there anyone out there 'cause it's getting harder and harder to breathe
Is there anyone out there 'cause it's getting harder and harder to breathe
Is there anyone out there 'cause it's getting harder and harder to breathe

I was so high I did not recognize

The fire burning in her eyes
The chaos that controlled my mind

Whispered goodbye and she got on a plane

Never to return again
But always in my heart

This love has taken its toll on me

She said Goodbye too many times before
And her heart is breaking in front of me
I have no choice cause I won't say goodbye anymore

I tried my best to feed her appetite

Keep her coming every night
So hard to keep her satisfied
Kept playing love like it was just a game
Pretending to feel the same
Then turn around and leave again

This love has taken its toll on me

She said Goodbye too many times before
And her heart is breaking in front of me
I have no choice cause I won't say goodbye anymore

I'll fix these broken things

Repair your broken wings
And make sure everything's alright
My pressure on your hips
Sinking my fingertips

Into every inch of you

Cause I know that's what you want me to do

This love has taken its toll on me

She said Goodbye too many times before
And her heart is breaking in front of me
I have no choice cause I won't say goodbye anymore

This love has taken its toll on me

She said Goodbye too many times before
And my heart is breaking in front of me
She said Goodbye too many times before

This love has taken its toll on me

She said Goodbye too many times before
And her heart is breaking in front of me
I have no choice cause I won't say goodbye anymore...