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the soft drink industry is a 100 billion
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dollar international juggernaut the
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coca-cola company and PepsiCo controlled
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vast empires which reach into
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practically every corner of the globe
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through huge networks of bottlers
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distributors and retailers there's
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hardly a spot on earth where you can't
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quench your thirst with a Coke or a
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Pepsi so heavily promoted their presence
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is practically inescapable coke and
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pepsi are twin icons of American culture
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such everyday familiar symbols that a
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time before their existence is almost
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unfathomable it was 1886 the height of
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the Gilded Age the civil war was over
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and America was hurtling headlong into
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the modern age
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electric lights hummed victrolas cranked
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up vaudeville tunes horseless carriages
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sputtered to life and the first
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skyscrapers thrust toward the sky
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against this backdrop this whirling
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kaleidoscope where everything was fresh
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new and bubbling over with fervent
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energy the world's most famous trademark
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was born launched with a tiny
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advertisement in Atlanta newspaper
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coca-cola was created by an Atlanta
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pharmacy owner named John doc Pemberton
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the Pemberton was no doctor he just
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purchased a $5 medical license and
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started calling himself doc a visit to
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dr. Merton usually included a vapor bath
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and a forcible cleansing of the
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digestive system he believed you could
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cure all human ills by in fact drinking
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poisons and and purging your body the
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1880s with a heyday of miracle cures and
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patent medicines store shelves were
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crammed with a bewildering array of
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elixirs and tonics of dubious
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reliability Pemberton's own concoctions
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included triplets liver pills and
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compound extracted still NGO dr.
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Sanford's great invigorate ER and Eureka
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oil federal regulation of food and drugs
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was years away and for the patent
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medicine business the sky was the limit
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you could concoct any sort of Mao potion
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and claim all sorts of miraculous cures
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for it and in fellin most patent
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medicines contained copious amounts of
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alcohol or even stronger drugs often
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both laudanum a popular painkiller was a
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mixture of opium and alcohol others
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contain powerful doses of what was in
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1886 the latest wonder drug cocaine
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cocaine had been relatively unknown in
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America until 1884 when former president
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and civil war hero ulysses s grant was
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stricken with throat cancer and was
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prescribed cocaine by his doctor grams
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dying and gained relief from his
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suffering by the use of cocaine which
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was in turn publicized and he was
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probably the most famous and popular
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figure in the country at that point so a
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lot of people had reason to think that
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cocaine was it was a good thing and doc
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Pemberton was one of those people among
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his early product was a concoction
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called French wine coca Pemberton used
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cocaine and caffeine and and Sarah's
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early creations his most successful one
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before he turned to coca-cola was a
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combination of wine which of course is
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alcohol cocaine and caffeine in it
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French wine coca was an immediate hit
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but its success was short-lived months
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after the potent mixture hit drug store
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shelves French wine Coca's main
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ingredient was outlawed it wasn't the
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cocaine it was the wine in 1885 Atlanta
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voted to go dry
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Pemberton panicked because his French
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wine coca just come out in 1885 it was
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doing real well and he thought what am I
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going to do if they make this illegal
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what he did was get out of the patent
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medicine business and into the soft
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drink business there were five immensely
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popular soda fountains in Atlanta that
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offered cool refreshment from the city's
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blistering summer heat Pemberton wanted
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a beverage that would sell at these
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popular fountains
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these huge soda fountains that that were
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like palaces of Onyx and marble with
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gorgeous accoutrements and they would
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they would create 300 different soft
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drinks at one soda fountain and so there
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was this immense competition with soft
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drinks like hires root beer and white
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rock ginger ale already successful
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Pemberton's challenge was to transform
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his wine and cocaine mixture into a soft
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drink
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what he came up with was anything but
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soft
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thanks to Eddy doses of cocaine and
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another stimulant extract of Cola coma
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spelled with a cave was a nut native to
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West Africa it's active ingredient was
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nothing more than caffeine Pemberton
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merely combined two popular stimulants
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in a single cold beverage that since it
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contained no alcohol could be sold at
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soda fountains Pemberton tinkered with
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the French wine coca formula to try to
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take out the alcohol and he added a
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bunch of sugar he added some acid and
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basically he came up with coca cola and
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it was Pemberton's bookkeeper Frank
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Robinson who came up with the name Frank
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Robinson had the inspiration to think of
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the name Coca Cola as he liked the way
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it sounded and he changed the spelling
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of Cola from beginning with a K to a C
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besides a memorable name Robinson also
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supplied the trademark spending months
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perfecting the flowing script he had a
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bookkeepers ability to write beautiful
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Spencerian script and that's actually
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his handwriting that became the
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trademark that's familiar all around the
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world today but what would become the
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world's most recognized brand name
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almost failed in its first year he was a
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rotten business man and he'd gone
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bankrupt several times and you did not
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want to be a business partner of dr.
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Burton sales were slow only 25 gallons
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of syrup sold the first year
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to make matters worse Pemberton's health
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was failing he was suffering from a
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problem that afflicted many druggists of
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the day it was by this time addicted to
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cocaine so this I would say contributed
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to his lack of business acumen a just
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spaced out mr. time in the winter of
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1888 Pemberton Lay Dying it looked as if
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coca-cola might die with him but that
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winter something would happen that would
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ensure cokes future when we return a
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splitting headache transforms the
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failing soft drink into a household word
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[Music]
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the coca plant had been chewed by
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natives of Peru and Bolivia for over
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2,000 years and was reputed to act as a
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stimulant aid to digestion aphrodisiac
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and life extender the cola wars will
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return on modern marvels
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[Music]
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Atlanta Georgia is one of the busiest
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fastest-growing cities in the sutler
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and the same is true back in the 1880s
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but it was a place where men of ambition
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aim to strike it rich
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among these eager men was a high-strung
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but determined 21 year old druggist
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apprentice from Villa Rica Georgia named
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ASA Kendler he came to Atlanta with a
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dollar and seventy five cents in his
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pocket like a real life a ratio Alger
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and I went around all the drugstores
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looking for a job one of which father
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while he was Pemberton's and who didn't
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harm turned down by Pemberton Candler
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landed a job at another pharmacist shop
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within four years he was in business for
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himself he was not the creative genius
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that Pemberton was and he was not the
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scholar that temperance n' was but he
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was a hustler he made a lot you know he
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wanted to make money and he knew how to
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do it Chandler's long hours of work paid
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off
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but his success came at a price
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excruciating headaches he was plainly a
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very tightly wound man who suffered from
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headaches from time to time brought on
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by by stress yet Cantler stress was
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nothing compared to Pemberton's troubles
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flat broken near-death coca-cola's
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creator offered to sell the business to
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the young druggist he once refused to
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hire at first he wasn't interested but
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then Candler racked by one of his
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recurring migraines sampled his first
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cook he'd tried quite a few different
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hit acremant is nothing at work but Ron
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coca-cola and it seemed to work
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his headache cured canler's mind was
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made up for $2,300 Candler became the
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sole proprietor of coca-cola in May 1889
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counselors first move was to refine the
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formula and rid coca-cola of its
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medicinal flavor he had a more sugar for
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example he added some citric products to
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mask the taste and to give a little bit
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more by night a little bit less sweet
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because of all the sugar that had to be
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added beyond cokes taste the dour deeply
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religious cancer also had serious
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reservations about the trademark
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ingredient
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he sent a sample of coke syrup off to a
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chemist to find out how much cocaine was
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actually in it and the report came back
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that it was substantial enough to be
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worrisome Candler devised a new means of
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exhausting these coca leaves so that
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there was no more than an infant
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estimate of cocaine as great from that
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day forward coca-cola would contain only
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trace amounts of its trademark
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ingredients in a way Coca Cola's names
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is very misleading because there's
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virtually no coca and virtually no Cola
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in it coca cola's potent combination of
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sugar and caffeine still packed a punch
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only now it tasted good to Frank
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Robinson Pemberton's former bookkeeper
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and now canler's chief of advertising
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once again provided the inspiration to
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take the product to the next level he
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launched a pioneering ad campaign among
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the first direct mail campaigns in
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history they would go to the biggest
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pharmacists in the town who had a soda
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fountain and they would ask him who his
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best customers were and they'd get their
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addresses and they would mail them free
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coupons for coca-cola driven by
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Robinson's aggressive advertising
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coca-cola expanded to soda fountains
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across the country sales jumped to half
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a million gallons of syrup by 1901
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roughly 60 million cokes
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America seemed addicted to coca-cola
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the only problem was that some people
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began to wonder why there were a lot of
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stories begin appearing in in various
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national publications about people who
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were afflicted with addictions to
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coca-cola and other soft drinks that
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contain could contain cocaine and there
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was an outcry building against it in
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1906 with public pressure mounting
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cancer went back to the laboratory and
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developed a complicated process that rid
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the drink of any trace of the drug once
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and for all this beverage this magic
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concoction Coca Cola a simple a simple
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refreshment advertised now only as a
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refreshment having no no magic qualities
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no health inducing properties but just
270
00:12:55,019 --> 00:13:04,429
simple refreshment that the success of
271
00:12:59,570 --> 00:13:08,460
Atlanta holy water a Coca Cola was
272
00:13:04,429 --> 00:13:11,549
repeated over and over again its critics
273
00:13:08,460 --> 00:13:14,790
silenced Coca Cola's sales continued to
274
00:13:11,549 --> 00:13:16,709
climb almost all the coke sales came
275
00:13:14,789 --> 00:13:19,349
from selling syrup to soda fountains
276
00:13:16,710 --> 00:13:23,220
back then carbonated drinks were seldom
277
00:13:19,350 --> 00:13:25,950
sold in bottles at all changed in 1899
278
00:13:23,220 --> 00:13:28,950
when the first coca-cola bottling plant
279
00:13:25,950 --> 00:13:30,990
was set up in nearby Chattanooga soon
280
00:13:28,950 --> 00:13:34,080
bottling plants sprang up across the
281
00:13:30,990 --> 00:13:37,470
country now it seemed coke was
282
00:13:34,080 --> 00:13:39,690
everywhere coca-cola was a pervasive
283
00:13:37,470 --> 00:13:42,210
kind of thing you'd see it on Main
284
00:13:39,690 --> 00:13:43,710
Street you'd see it at your your Civic
285
00:13:42,210 --> 00:13:47,970
Club you'd see it at the high-school
286
00:13:43,710 --> 00:13:51,300
football game soon others attempted to
287
00:13:47,970 --> 00:13:53,430
cash in on coke success with sound-alike
288
00:13:51,299 --> 00:13:56,189
names and identical-looking bottles and
289
00:13:53,429 --> 00:13:59,689
logos cokes competitors had an easy time
290
00:13:56,190 --> 00:13:59,690
confusing the drink buying
291
00:14:00,360 --> 00:14:05,139
determined to set his product apart
292
00:14:02,649 --> 00:14:08,049
Candler directed his bothers to come up
293
00:14:05,139 --> 00:14:11,799
with a unique distinctive package the
294
00:14:08,049 --> 00:14:15,159
result unveiled in 1916 was so simple
295
00:14:11,799 --> 00:14:18,508
yet so original it became an American
296
00:14:15,159 --> 00:14:22,889
icon it was the same everywhere a
297
00:14:18,509 --> 00:14:25,959
universal bottle that even a blind man
298
00:14:22,889 --> 00:14:29,230
when the bottle is placed in his hand he
299
00:14:25,958 --> 00:14:32,919
can feel its contours and know that that
300
00:14:29,230 --> 00:14:35,350
is coca-cola the pains the company took
301
00:14:32,919 --> 00:14:38,159
to protect the formula were equaled only
302
00:14:35,350 --> 00:14:43,058
by how vigorously coke defended its name
303
00:14:38,159 --> 00:14:45,519
coke militantly protected its trademark
304
00:14:43,058 --> 00:14:48,188
against anyone who tried to use a
305
00:14:45,519 --> 00:14:51,308
similar name and they were successful in
306
00:14:48,188 --> 00:14:54,998
literally hundreds of infringement suits
307
00:14:51,308 --> 00:14:58,409
and they drove competing Coca's and
308
00:14:54,999 --> 00:15:00,240
colas out of business for years
309
00:14:58,409 --> 00:15:02,730
if Candler seemed obsessive about
310
00:15:00,240 --> 00:15:04,590
protecting his trademark it was nothing
311
00:15:02,730 --> 00:15:06,920
compared to how obsessive he was about
312
00:15:04,590 --> 00:15:10,019
protecting the ingredients of coca-cola
313
00:15:06,919 --> 00:15:13,309
the only written copy of the formula was
314
00:15:10,019 --> 00:15:16,169
kept in a bank Walt and why not
315
00:15:13,309 --> 00:15:19,829
coca-cola had made Candler fabulously
316
00:15:16,169 --> 00:15:21,929
wealthy success that he attributed as
317
00:15:19,830 --> 00:15:23,940
much to the taste of coke as to the
318
00:15:21,929 --> 00:15:27,719
marketing and distribution operation he
319
00:15:23,940 --> 00:15:31,650
had created but despite his phenomenal
320
00:15:27,720 --> 00:15:35,070
success Candler was dissatisfied I think
321
00:15:31,649 --> 00:15:37,980
he felt guilty about the massive wealth
322
00:15:35,070 --> 00:15:39,300
he was accumulating selling coca-cola I
323
00:15:37,980 --> 00:15:43,680
don't think he thought the product was
324
00:15:39,299 --> 00:15:45,949
terribly worthwhile in 1919 Candler and
325
00:15:43,679 --> 00:15:48,419
his family decided to sell coca-cola
326
00:15:45,950 --> 00:15:50,900
among those interested was a powerful
327
00:15:48,419 --> 00:15:53,429
Atlanta banker named Ernest Woodruff
328
00:15:50,899 --> 00:15:56,429
almost everybody hated Ernest Woodruff
329
00:15:53,429 --> 00:16:00,199
he was a unpleasant person by all
330
00:15:56,429 --> 00:16:03,059
accounts although I found this wonderful
331
00:16:00,200 --> 00:16:06,120
quote from a contemporary newspaper from
332
00:16:03,059 --> 00:16:08,759
around 1919 saying Ernest Woodruff is
333
00:16:06,120 --> 00:16:11,730
not a companionable man and he has few
334
00:16:08,759 --> 00:16:14,909
friends but when he calls the dollars
335
00:16:11,730 --> 00:16:17,519
come Chandler did not want to sell his
336
00:16:14,909 --> 00:16:19,709
company to a man like Woodruff so when
337
00:16:17,519 --> 00:16:21,840
his family accepted an offer to sell for
338
00:16:19,710 --> 00:16:24,330
twenty five million dollars he figured
339
00:16:21,840 --> 00:16:26,790
Woodruff was out of the running he think
340
00:16:24,330 --> 00:16:29,129
you're drunk he was considered a shark
341
00:16:26,789 --> 00:16:31,589
and a sharp operator and someone not to
342
00:16:29,129 --> 00:16:33,360
be entirely trusted and ASA Candler in
343
00:16:31,590 --> 00:16:35,759
particular would have nothing to do with
344
00:16:33,360 --> 00:16:38,490
him he considered Ernest Woodruff to be
345
00:16:35,759 --> 00:16:40,379
an unsavory figure and so it was a big
346
00:16:38,490 --> 00:16:43,279
surprise days a Candler when he found
347
00:16:40,379 --> 00:16:46,169
out who had actually bought coca-cola
348
00:16:43,279 --> 00:16:48,629
Woodruff wanted coca-cola merely as an
349
00:16:46,169 --> 00:16:52,469
investment he had no real interest in
350
00:16:48,629 --> 00:16:54,990
running the company in 1923 Woodruff
351
00:16:52,470 --> 00:16:58,259
turned coca-cola over to his 33 year old
352
00:16:54,990 --> 00:17:00,240
son Robert the story goes that Robert
353
00:16:58,259 --> 00:17:03,210
took the job with the explicit
354
00:17:00,240 --> 00:17:05,609
understanding that his father would not
355
00:17:03,210 --> 00:17:06,720
be countermanding everything he did
356
00:17:05,609 --> 00:17:08,969
would not be looking over his shoulder
357
00:17:06,720 --> 00:17:09,480
that he would really be the boss of the
358
00:17:08,970 --> 00:17:12,240
company
359
00:17:09,480 --> 00:17:15,899
and indeed he became known as the boss
360
00:17:12,240 --> 00:17:18,449
that was his nickname unlike his father
361
00:17:15,898 --> 00:17:21,629
Robert was very interested in running
362
00:17:18,449 --> 00:17:23,759
the company he oversaw virtually every
363
00:17:21,630 --> 00:17:28,470
facet of the operation from production
364
00:17:23,759 --> 00:17:32,519
to marketing but he overlooked one small
365
00:17:28,470 --> 00:17:35,130
detail when we returned coca-cola
366
00:17:32,519 --> 00:17:37,169
bundles the chance to crush a struggling
367
00:17:35,130 --> 00:17:43,950
upstart challenger that would one day
368
00:17:37,169 --> 00:17:46,740
emerge as cokes greatest nemesis in 1891
369
00:17:43,950 --> 00:17:48,929
of the first coca-cola slogans read the
370
00:17:46,740 --> 00:17:51,960
wonderful nerve and brain tonic and
371
00:17:48,929 --> 00:17:54,019
remarkable therapeutic agent the cola
372
00:17:51,960 --> 00:18:01,940
wars will return on modern marvels
373
00:17:54,019 --> 00:18:01,940
[Music]
374
00:18:02,839 --> 00:18:07,409
well the colas portion was made in the
375
00:18:05,788 --> 00:18:10,109
bustling metropolis of Atlanta
376
00:18:07,410 --> 00:18:14,759
pepsi-cola originated in a more remote
377
00:18:10,109 --> 00:18:17,250
location it was created in 1898 in New
378
00:18:14,759 --> 00:18:21,089
Bern North Carolina by a pharmacist
379
00:18:17,250 --> 00:18:23,429
named Caleb Bradham Kayla was a druggist
380
00:18:21,089 --> 00:18:25,619
a pharmacist who liked to fool around
381
00:18:23,429 --> 00:18:27,330
with a soda fountain then came up with a
382
00:18:25,619 --> 00:18:31,649
drink at that time was called Brad's
383
00:18:27,329 --> 00:18:33,629
drink very popular in New Bern marketing
384
00:18:31,650 --> 00:18:36,150
for it supposed the digital quality's
385
00:18:33,630 --> 00:18:38,460
Pepsi's patent medicine origins were
386
00:18:36,150 --> 00:18:41,280
similar to cokes with one noted
387
00:18:38,460 --> 00:18:43,409
exception rather than coca-cola which
388
00:18:41,279 --> 00:18:45,990
was created as a Madison Pepsi was
389
00:18:43,409 --> 00:18:49,289
essentially a meant to be a drink from
390
00:18:45,990 --> 00:18:50,940
the very first as a refreshing pepper
391
00:18:49,288 --> 00:18:52,740
operon certainly with the caffeine that
392
00:18:50,940 --> 00:18:57,600
was in it from the Kola nut it would do
393
00:18:52,740 --> 00:19:01,200
that in 1902 Bradham renamed Brad's
394
00:18:57,599 --> 00:19:04,259
drink Pepsi Cola and just like Coca Cola
395
00:19:01,200 --> 00:19:06,419
the name was misleading Bradham used the
396
00:19:04,259 --> 00:19:08,640
name column from the popularity of coal
397
00:19:06,419 --> 00:19:11,370
at that time and he combined that with a
398
00:19:08,640 --> 00:19:14,250
pepsin which aids digestion and that was
399
00:19:11,369 --> 00:19:16,709
the one of the early advertising claims
400
00:19:14,250 --> 00:19:18,808
of Pepsi Cola that did a digestion
401
00:19:16,710 --> 00:19:23,610
although Pepsi never had any pepsin in
402
00:19:18,808 --> 00:19:26,460
it by 1907 Pepsi was selling 100,000
403
00:19:23,609 --> 00:19:27,058
gallons of syrup a year less than 10
404
00:19:26,460 --> 00:19:29,519
years later
405
00:19:27,058 --> 00:19:33,149
Radames budding Pepsi Empire had grown
406
00:19:29,519 --> 00:19:36,389
to nearly 300 bottling operations in 24
407
00:19:33,150 --> 00:19:40,048
states it became an instant success by
408
00:19:36,390 --> 00:19:42,288
about 1910 Pepsi Cola was being sold
409
00:19:40,048 --> 00:19:46,889
throughout North and South Carolina
410
00:19:42,288 --> 00:19:50,190
Virginia Georgia Alabama so it had done
411
00:19:46,890 --> 00:19:53,460
very well very quickly
412
00:19:50,190 --> 00:19:58,149
then in the midst of World War one
413
00:19:53,460 --> 00:20:01,298
disaster struck sugar prices shot up
414
00:19:58,148 --> 00:20:03,728
dramatically to keep pepsi flowing into
415
00:20:01,298 --> 00:20:06,819
the nation soda fountains Bratton took a
416
00:20:03,729 --> 00:20:10,179
huge gamble random decided to bite the
417
00:20:06,819 --> 00:20:12,608
bullet and order a lot of sugar and buy
418
00:20:10,179 --> 00:20:15,399
sugar futures at the high price because
419
00:20:12,608 --> 00:20:18,128
he thought would go higher unfortunately
420
00:20:15,398 --> 00:20:20,468
the price of sugar dropped from 22 cents
421
00:20:18,128 --> 00:20:23,588
down to below three cents a pound again
422
00:20:20,469 --> 00:20:26,859
almost overnight and the Pensacola
423
00:20:23,588 --> 00:20:30,759
Company was simply ruined ruined and out
424
00:20:26,858 --> 00:20:34,838
of business with his company shut down
425
00:20:30,759 --> 00:20:36,669
Bratton returned to his drugstore the
426
00:20:34,838 --> 00:20:39,038
Pepsi story would have ended then and
427
00:20:36,669 --> 00:20:41,630
there if it weren't for a blunder by
428
00:20:39,038 --> 00:20:44,299
coca-cola
429
00:20:41,630 --> 00:20:47,600
after the war and aided by prohibition
430
00:20:44,299 --> 00:20:53,029
Coca Cola's sales skyrocketed reaching
431
00:20:47,599 --> 00:20:55,519
23 million dollars in 1923 with the bars
432
00:20:53,029 --> 00:20:57,019
shut down soda fountains did a booming
433
00:20:55,519 --> 00:21:00,019
business that not even the Great
434
00:20:57,019 --> 00:21:02,779
Depression could dent according to
435
00:21:00,019 --> 00:21:05,059
Barron's magazine that merry symphony of
436
00:21:02,779 --> 00:21:06,920
nickels and dimes rolling into myriad
437
00:21:05,059 --> 00:21:09,049
cash registers across the nation and
438
00:21:06,920 --> 00:21:11,390
eventually into the coca-cola company's
439
00:21:09,049 --> 00:21:15,609
treasury has meant a remarkably steady
440
00:21:11,390 --> 00:21:15,610
income both in good times and bad
441
00:21:17,019 --> 00:21:23,240
lost candy stores a new york-based chain
442
00:21:20,480 --> 00:21:27,589
of soda fountains alone sold nearly 4
443
00:21:23,240 --> 00:21:30,019
million cokes a year in 1932 Lofts
444
00:21:27,589 --> 00:21:32,480
president the bottom line minded Charles
445
00:21:30,019 --> 00:21:34,490
guff approached Woodruff and coca-cola
446
00:21:32,480 --> 00:21:37,190
demanding a discount on the syrup for
447
00:21:34,490 --> 00:21:40,549
his fund ins gut thought that he should
448
00:21:37,190 --> 00:21:41,600
get a discount the Coca Cola was so high
449
00:21:40,549 --> 00:21:45,529
and mighty they didn't give anybody
450
00:21:41,599 --> 00:21:47,929
discounts so guff bought Pepsi when it
451
00:21:45,529 --> 00:21:50,869
was in one of its perennial bankruptcies
452
00:21:47,930 --> 00:21:54,440
and he started selling it in his soda
453
00:21:50,869 --> 00:21:56,599
fountains but with the lofts doors as
454
00:21:54,440 --> 00:21:59,150
its only outfit it wasn't long before
455
00:21:56,599 --> 00:22:01,879
Pepsi was verging on bankruptcy once
456
00:21:59,150 --> 00:22:03,620
again at this point he decide that maybe
457
00:22:01,880 --> 00:22:07,280
he had done the best thing and bringing
458
00:22:03,619 --> 00:22:09,529
Pepsi cult aloft swallowing his
459
00:22:07,279 --> 00:22:11,450
considerable pride guff went back to
460
00:22:09,529 --> 00:22:12,500
Woodruff and offered to sell Pepsi to
461
00:22:11,450 --> 00:22:14,870
him
462
00:22:12,500 --> 00:22:18,890
Coco listen you know you've got nothing
463
00:22:14,869 --> 00:22:21,169
we're not interested and as I say the
464
00:22:18,890 --> 00:22:23,050
rest is history it was a blunder because
465
00:22:21,170 --> 00:22:26,230
he could have eliminated his principle
466
00:22:23,049 --> 00:22:28,460
competition for a very cheap price
467
00:22:26,230 --> 00:22:31,450
Woodruff had missed a golden opportunity
468
00:22:28,460 --> 00:22:34,819
to crush Pepsi before it became a threat
469
00:22:31,450 --> 00:22:44,660
worse Woodruff Farragut's only stiffened
470
00:22:34,819 --> 00:22:46,450
guts result in 1934 all of America was
471
00:22:44,660 --> 00:22:49,100
in the grips of the Great Depression
472
00:22:46,450 --> 00:22:52,670
millions were out of work and money was
473
00:22:49,099 --> 00:22:56,029
tight a nickel was a lot of money to
474
00:22:52,670 --> 00:22:58,100
depression starved Americans gov came up
475
00:22:56,029 --> 00:23:01,329
with a plan to give people more for
476
00:22:58,099 --> 00:23:04,819
their money and keep his company afloat
477
00:23:01,329 --> 00:23:07,220
he managed to buy some old beer bottles
478
00:23:04,819 --> 00:23:09,799
and beer bottles in those days had paper
479
00:23:07,220 --> 00:23:12,170
labels so that you could put on a new
480
00:23:09,799 --> 00:23:13,669
label for the brawny brand you wanted
481
00:23:12,170 --> 00:23:17,300
and he bought a lot of them for very
482
00:23:13,670 --> 00:23:20,570
little money and he sold at 12 ounce
483
00:23:17,299 --> 00:23:23,599
bottle for five cents at that time every
484
00:23:20,569 --> 00:23:24,519
other soft it was being sold six ounces
485
00:23:23,599 --> 00:23:28,009
for a nickel
486
00:23:24,519 --> 00:23:30,529
within days all the pepsi-cola stock
487
00:23:28,009 --> 00:23:31,940
they had it was gone people love the 12
488
00:23:30,529 --> 00:23:34,190
ounce for a nickel
489
00:23:31,940 --> 00:23:37,759
although Pepsi's advertisement at that
490
00:23:34,190 --> 00:23:40,070
time was centered around a nickel twice
491
00:23:37,759 --> 00:23:43,160
as much for nickel America's biggest
492
00:23:40,069 --> 00:23:45,740
nickel drink a nickel was really a lot
493
00:23:43,160 --> 00:23:47,600
of money and the fact that you can pay a
494
00:23:45,740 --> 00:23:50,450
nickel get twice as much really
495
00:23:47,599 --> 00:23:54,049
influenced a lot of people to buy Pepsi
496
00:23:50,450 --> 00:23:54,529
Cola instead of Coca Cola in just six
497
00:23:54,049 --> 00:23:57,579
months
498
00:23:54,529 --> 00:24:01,309
Pepsi went from bankruptcy to turning a
499
00:23:57,579 --> 00:24:03,649
$100,000 profit a Pepsi sales were still
500
00:24:01,309 --> 00:24:07,250
minuscule compared to cokes but Pepsi
501
00:24:03,650 --> 00:24:10,280
was alive down in Atlanta the giant of
502
00:24:07,250 --> 00:24:13,819
the Cola business was suddenly anxious
503
00:24:10,279 --> 00:24:17,980
when we return Coke and Pepsi battle it
504
00:24:13,819 --> 00:24:17,980
out in a grudge match for number one
505
00:24:18,069 --> 00:24:20,899
John
506
00:24:19,339 --> 00:24:22,939
dr. Merton was a Confederate
507
00:24:20,900 --> 00:24:25,820
lieutenant-colonel earned a medical
508
00:24:22,940 --> 00:24:28,009
degree at 19 and set up a top-rated lab
509
00:24:25,819 --> 00:24:30,529
for chemical analysis and manufacture
510
00:24:28,009 --> 00:24:31,430
the cola wars will return on modern
511
00:24:30,529 --> 00:24:40,200
marvels
512
00:24:31,430 --> 00:24:40,200
[Music]
513
00:24:41,089 --> 00:24:46,558
as World War two raged in Europe the
514
00:24:44,669 --> 00:24:52,200
slumbering giant of American industry
515
00:24:46,558 --> 00:24:54,839
awakened steel mills aircraft factories
516
00:24:52,200 --> 00:24:57,480
in shipyards sprang to life to support
517
00:24:54,839 --> 00:25:00,629
the war effort but the war presented a
518
00:24:57,480 --> 00:25:03,630
serious challenge to Coke and Pepsi when
519
00:25:00,630 --> 00:25:05,669
world war ii broke out coca-cola was
520
00:25:03,630 --> 00:25:08,278
immediately confronted with the threat
521
00:25:05,669 --> 00:25:12,480
of sugar rationing that would probably
522
00:25:08,278 --> 00:25:14,880
cut its domestic sales by half while his
523
00:25:12,480 --> 00:25:17,909
management team was panicking Woodruff
524
00:25:14,880 --> 00:25:19,679
seized the initiative and went off to
525
00:25:17,909 --> 00:25:21,210
Washington and tried to argue with the
526
00:25:19,679 --> 00:25:23,970
government and tell them that coca-cola
527
00:25:21,210 --> 00:25:27,569
was a wartime necessity and to a
528
00:25:23,970 --> 00:25:29,880
remarkable extent he succeeded soon
529
00:25:27,569 --> 00:25:31,859
millions of cases of coca-cola were
530
00:25:29,880 --> 00:25:34,679
being supplied to military training
531
00:25:31,859 --> 00:25:36,750
camps but Woodruff had managed to do
532
00:25:34,679 --> 00:25:38,639
more than just secure the exclusive
533
00:25:36,750 --> 00:25:42,089
rights to sell soft drinks to servicemen
534
00:25:38,638 --> 00:25:45,569
he dealt Pepsi a devastating blow as
535
00:25:42,089 --> 00:25:47,819
well any Coca Cola that went to the
536
00:25:45,569 --> 00:25:51,500
Troops was the exempt from sugar
537
00:25:47,819 --> 00:25:54,178
rationing and Pepsi did not get this
538
00:25:51,500 --> 00:25:55,759
while coke it unrestricted access to
539
00:25:54,179 --> 00:25:59,309
rationed sugar and other commodities
540
00:25:55,759 --> 00:26:01,169
Pepsi struggled there was a bother in
541
00:25:59,308 --> 00:26:04,648
West Virginia who during the World War
542
00:26:01,169 --> 00:26:07,169
two could not get enough sugar for Pepsi
543
00:26:04,648 --> 00:26:09,000
so what he did is he also had a candy
544
00:26:07,169 --> 00:26:12,028
business he melted down all his rock
545
00:26:09,000 --> 00:26:15,210
candy and extracted the pepper sugar of
546
00:26:12,028 --> 00:26:17,700
it for his Pepsi coca-cola on the other
547
00:26:15,210 --> 00:26:19,069
hand had full access to all the sugar
548
00:26:17,700 --> 00:26:22,110
they needed
549
00:26:19,069 --> 00:26:23,879
wherever American GIs went from the
550
00:26:22,109 --> 00:26:27,509
North African desert to the jungles of
551
00:26:23,880 --> 00:26:31,649
the Pacific Coca Cola followed at the
552
00:26:27,509 --> 00:26:37,470
coca-cola company I remember a telegram
553
00:26:31,648 --> 00:26:40,619
that was framed and and put there on the
554
00:26:37,470 --> 00:26:46,110
fourth floor offices the executive suite
555
00:26:40,619 --> 00:26:49,539
and it said send six coca-cola bottling
556
00:26:46,109 --> 00:26:52,519
plants Ike
557
00:26:49,539 --> 00:26:56,420
during World War two American servicemen
558
00:26:52,519 --> 00:26:58,250
consumed 10 billion bottles of coke the
559
00:26:56,420 --> 00:27:00,950
cokes support of the war effort was more
560
00:26:58,250 --> 00:27:03,079
than just racking up sales it was the
561
00:27:00,950 --> 00:27:07,250
single greatest marketing coup in the
562
00:27:03,079 --> 00:27:11,509
company's history coca-cola provided the
563
00:27:07,250 --> 00:27:14,769
GIS with a taste of home and it was
564
00:27:11,509 --> 00:27:17,359
there as they came back from battle
565
00:27:14,769 --> 00:27:20,389
often at the very front lines
566
00:27:17,359 --> 00:27:22,759
he had technical advisors of Coca Cola
567
00:27:20,390 --> 00:27:24,380
Colonels if you will who were there to
568
00:27:22,759 --> 00:27:27,049
see that the bottling was done right
569
00:27:24,380 --> 00:27:32,000
that was different from product I
570
00:27:27,049 --> 00:27:35,169
daresay like spam that some GIS had less
571
00:27:32,000 --> 00:27:40,880
pleasant memories of the coca-cola
572
00:27:35,170 --> 00:27:44,300
became an icon to the American GI what
573
00:27:40,880 --> 00:27:46,670
began as a mercenary business decision
574
00:27:44,299 --> 00:27:50,089
ended up taking on a life of its own and
575
00:27:46,670 --> 00:27:52,789
and the American GI came to have a
576
00:27:50,089 --> 00:27:53,990
devotion to coke it was like a letter
577
00:27:52,789 --> 00:27:56,869
from your sweetheart
578
00:27:53,990 --> 00:27:59,690
pour time for play of course means forth
579
00:27:56,869 --> 00:28:01,609
they're still the neap are used to the
580
00:27:59,690 --> 00:28:04,220
devotion of a generation of servicemen
581
00:28:01,609 --> 00:28:07,429
coca-cola entered the 50s feeling
582
00:28:04,220 --> 00:28:09,440
invincible Woodruff and coca-cola all
583
00:28:07,430 --> 00:28:13,070
but turned their backs to the threat
584
00:28:09,440 --> 00:28:14,809
posed by PepsiCo with a great contempt
585
00:28:13,069 --> 00:28:17,509
that Robert Woodruff and the other
586
00:28:14,809 --> 00:28:20,059
leaders of coca-cola had for Pepsi is
587
00:28:17,509 --> 00:28:23,920
it's almost amusing now they called it
588
00:28:20,059 --> 00:28:28,970
the imitator we would refer to the
589
00:28:23,920 --> 00:28:31,970
competitor as the Pecola we have to look
590
00:28:28,970 --> 00:28:35,299
out for that cooler over here or over
591
00:28:31,970 --> 00:28:39,259
there or at that important supermarket
592
00:28:35,299 --> 00:28:41,059
or food store t Cola will make a run at
593
00:28:39,259 --> 00:28:43,839
us Pecola
594
00:28:41,059 --> 00:28:46,579
[Laughter]
595
00:28:43,839 --> 00:28:48,980
Woodruff and Coca Cola had good reason
596
00:28:46,579 --> 00:28:51,980
to feel invulnerable just becoming its
597
00:28:48,980 --> 00:28:54,710
president in 1923 Woodruff had led coke
598
00:28:51,980 --> 00:28:57,750
on a meteoric climb
599
00:28:54,710 --> 00:29:00,360
the drink now had a worldwide presence
600
00:28:57,750 --> 00:29:07,740
with annual sales approaching 1 billion
601
00:29:00,359 --> 00:29:10,500
dollars Woodruff that proven is worth to
602
00:29:07,740 --> 00:29:14,490
his father and a coca-cola stockholders
603
00:29:10,500 --> 00:29:18,299
many of whom he made very rich a single
604
00:29:14,490 --> 00:29:24,269
$40 share purchased in 1919 was now in
605
00:29:18,299 --> 00:29:25,759
1950 worth nearly $5,000 secure in his
606
00:29:24,269 --> 00:29:29,819
dominance of the soft drink industry
607
00:29:25,759 --> 00:29:33,809
Woodruff let the company coast along you
608
00:29:29,819 --> 00:29:35,129
had Woodruff refusing to to change the
609
00:29:33,809 --> 00:29:37,200
things that had worked for him and I
610
00:29:35,130 --> 00:29:40,290
think a lot of successful businessmen
611
00:29:37,200 --> 00:29:45,269
have that problem but he insisted on
612
00:29:40,289 --> 00:29:48,170
having one price the nickel even as the
613
00:29:45,269 --> 00:29:52,319
cost of ingredients was going on one
614
00:29:48,170 --> 00:29:53,670
product coca-cola no other flavors for
615
00:29:52,319 --> 00:29:57,829
the vending machines that were now
616
00:29:53,670 --> 00:30:00,420
popping up and only one size of
617
00:29:57,829 --> 00:30:05,099
container the old six and a half ounce
618
00:30:00,420 --> 00:30:06,870
bottle but in the 50s and 60s the soft
619
00:30:05,099 --> 00:30:10,319
drink business along with the rest of
620
00:30:06,869 --> 00:30:12,089
the world was rapidly changing companies
621
00:30:10,319 --> 00:30:15,029
were expanding and diversifying their
622
00:30:12,089 --> 00:30:17,399
products and marketing efforts Pepsi was
623
00:30:15,029 --> 00:30:20,160
controlled not by one man like Woodruff
624
00:30:17,400 --> 00:30:23,580
at coke but by a conglomerate of CEOs
625
00:30:20,160 --> 00:30:26,460
brand managers and directors
626
00:30:23,579 --> 00:30:28,679
as the soft drink industry grew more and
627
00:30:26,460 --> 00:30:31,319
more products flavours and packages
628
00:30:28,680 --> 00:30:33,180
entered the market each year even a
629
00:30:31,319 --> 00:30:35,929
staunch traditionalist like Woodruff
630
00:30:33,180 --> 00:30:40,049
reluctantly had to follow suit
631
00:30:35,930 --> 00:30:42,720
finally in 1955 Woodruff allowed a
632
00:30:40,049 --> 00:30:44,970
bigger Coca Cola and eventually like in
633
00:30:42,720 --> 00:30:48,230
1961 they came out with sprite so they
634
00:30:44,970 --> 00:30:48,230
began to come out with other flavors
635
00:30:49,700 --> 00:30:55,289
there would be other changes to the cola
636
00:30:52,950 --> 00:30:58,430
wars were escalating and there was a new
637
00:30:55,289 --> 00:31:04,109
all-powerful weapon in the battle
638
00:30:58,430 --> 00:31:06,120
television say what I have more fun and
639
00:31:04,109 --> 00:31:10,649
come on along and let's join the Pepsi
640
00:31:06,119 --> 00:31:14,819
crowd trailing Coke in sales Pepsi made
641
00:31:10,650 --> 00:31:16,890
full use of the new medium faced with a
642
00:31:14,819 --> 00:31:19,200
world war two generations fanatical
643
00:31:16,890 --> 00:31:21,690
devotion to coca-cola Pepsi simply
644
00:31:19,200 --> 00:31:25,430
ignored them focusing on their kids
645
00:31:21,690 --> 00:31:28,200
instead places the people they love and
646
00:31:25,430 --> 00:31:30,720
Pensacola is their one Cola that belongs
647
00:31:28,200 --> 00:31:33,000
with every happy hopeful moment we came
648
00:31:30,720 --> 00:31:34,860
upon the notion of instead of talking
649
00:31:33,000 --> 00:31:37,019
about the product so much let's talk
650
00:31:34,859 --> 00:31:39,779
about the consumer that uses it the type
651
00:31:37,019 --> 00:31:41,759
of person that would buy or use this
652
00:31:39,779 --> 00:31:46,769
product and it was Willie at that time
653
00:31:41,759 --> 00:31:48,690
termed a necktie philosophy meaning that
654
00:31:46,769 --> 00:31:50,700
if you look at a man's tie you can tell
655
00:31:48,690 --> 00:31:52,860
something about him usually I mean it's
656
00:31:50,700 --> 00:31:54,569
it's right there and then was true about
657
00:31:52,859 --> 00:31:57,990
what soft drink he would hold in his
658
00:31:54,569 --> 00:32:01,409
hand that if he had a Pepsi Cola ends
659
00:31:57,990 --> 00:32:06,420
and chances are he would be less
660
00:32:01,410 --> 00:32:08,430
traditional he might be more youthful it
661
00:32:06,420 --> 00:32:10,500
didn't take long for coke to realize
662
00:32:08,430 --> 00:32:12,539
that if they seated the youth market to
663
00:32:10,500 --> 00:32:16,200
Pepsi eventually they'd run out of
664
00:32:12,539 --> 00:32:18,059
customers coke struck back with one of
665
00:32:16,200 --> 00:32:18,830
the most famous commercials ever
666
00:32:18,059 --> 00:32:21,940
produced
667
00:32:18,829 --> 00:32:21,939
[Music]
668
00:32:32,069 --> 00:32:37,538
the funny story behind that is that the
669
00:32:35,288 --> 00:32:40,148
president of the company at the time did
670
00:32:37,538 --> 00:32:41,950
not think that that ad was a very good
671
00:32:40,148 --> 00:32:44,439
idea he thought it was a little too
672
00:32:41,950 --> 00:32:47,470
pacifistic a little too treacly to
673
00:32:44,440 --> 00:32:48,548
saccharine sweet but he shrugged and he
674
00:32:47,470 --> 00:32:50,288
said well that's why we have an
675
00:32:48,548 --> 00:32:51,908
advertising department so he gave the
676
00:32:50,288 --> 00:32:55,329
green light to it and became immensely
677
00:32:51,909 --> 00:33:00,179
popular song that I think captured
678
00:32:55,329 --> 00:33:02,619
something of a generational feeling
679
00:33:00,179 --> 00:33:05,019
despite the success of Coca Cola's
680
00:33:02,619 --> 00:33:06,599
extraordinary ad it was too little too
681
00:33:05,019 --> 00:33:09,190
late
682
00:33:06,599 --> 00:33:14,788
Betsy's market share continued to climb
683
00:33:09,190 --> 00:33:16,990
and in 1975 Pepsi went for the jugular
684
00:33:14,788 --> 00:33:21,038
they launched a massive ad campaign
685
00:33:16,990 --> 00:33:23,980
called the Pepsi challenge we did an
686
00:33:21,038 --> 00:33:27,069
illegitimate taste tests with all kinds
687
00:33:23,980 --> 00:33:28,628
of specifications on the freshness of
688
00:33:27,069 --> 00:33:30,519
the two products being tested the
689
00:33:28,628 --> 00:33:32,259
temperature of the two products and so
690
00:33:30,519 --> 00:33:34,720
forth and alternating which one was
691
00:33:32,259 --> 00:33:37,149
tasted first and which one wasn't and
692
00:33:34,720 --> 00:33:40,450
all through those tests we learned that
693
00:33:37,148 --> 00:33:44,589
Pepsi when it was not identified was
694
00:33:40,450 --> 00:33:47,169
preferred by 1984 Pepsi had grown from
695
00:33:44,589 --> 00:33:50,259
depression near underdog to a vicious
696
00:33:47,169 --> 00:33:52,179
attack dog Pepsi's market share now
697
00:33:50,259 --> 00:33:53,319
trailed Koch's by less than three
698
00:33:52,179 --> 00:33:56,409
percentage points
699
00:33:53,319 --> 00:33:58,808
Pepsi sales were were about equal to
700
00:33:56,409 --> 00:34:01,509
coca-cola that's something that never
701
00:33:58,808 --> 00:34:04,750
occurred before and in some markets uh
702
00:34:01,509 --> 00:34:06,519
Pepsi had even pulled ahead taste after
703
00:34:04,750 --> 00:34:09,309
years of relentless and aggressive
704
00:34:06,519 --> 00:34:13,000
marketing the imitator had finally
705
00:34:09,309 --> 00:34:16,599
caught up in Coca Cola's Atlanta
706
00:34:13,000 --> 00:34:19,909
headquarters panic ensued
707
00:34:16,599 --> 00:34:24,230
when we return coca-cola stages a
708
00:34:19,909 --> 00:34:26,148
classic blunder John Pemberton's first
709
00:34:24,230 --> 00:34:28,128
soft drink was sold to the public at the
710
00:34:26,148 --> 00:34:32,210
soda fountain and Jacobs pharmacy in
711
00:34:28,128 --> 00:34:33,860
Atlanta on May 8 1886 the cola wars will
712
00:34:32,210 --> 00:34:41,039
return on modern marvels
713
00:34:33,860 --> 00:34:44,500
[Music]
714
00:34:41,039 --> 00:34:47,949
in the early 1980s coca-cola was in
715
00:34:44,500 --> 00:34:49,630
trouble Pepsi's relentless pursuit of
716
00:34:47,949 --> 00:34:52,059
the youth market and their highly
717
00:34:49,630 --> 00:34:54,220
successful Pepsi challenge campaign had
718
00:34:52,059 --> 00:34:55,900
brought them to within a few share
719
00:34:54,219 --> 00:35:00,099
points of cokes once insurmountable
720
00:34:55,900 --> 00:35:02,110
market dominance unbeknownst to the
721
00:35:00,099 --> 00:35:04,599
public and all but the highest of coke
722
00:35:02,110 --> 00:35:07,090
management the company began to tinker
723
00:35:04,599 --> 00:35:11,289
with the most guarded most sacred part
724
00:35:07,090 --> 00:35:14,350
of Coca Cola's Empire the formula the
725
00:35:11,289 --> 00:35:16,119
decision was made that that they
726
00:35:14,349 --> 00:35:19,000
actually had to change the formula to
727
00:35:16,119 --> 00:35:21,759
make a little bit more like Pepsi to
728
00:35:19,000 --> 00:35:23,800
fend off the competition the change
729
00:35:21,760 --> 00:35:25,630
would have been unthinkable if Robert
730
00:35:23,800 --> 00:35:28,810
Woodruff still held a tight rein on the
731
00:35:25,630 --> 00:35:31,180
company but by the 1980s Coca Cola's
732
00:35:28,809 --> 00:35:33,489
aging patriarch was a fading relic a
733
00:35:31,179 --> 00:35:36,399
mere shadow of the man who'd run the
734
00:35:33,489 --> 00:35:40,199
company for over 60 years I don't
735
00:35:36,400 --> 00:35:43,720
believe that Robert Woodruff in 1985 was
736
00:35:40,199 --> 00:35:46,239
capable of understanding much he was 95
737
00:35:43,719 --> 00:35:49,289
years old by that of severely diminished
738
00:35:46,239 --> 00:35:51,639
capacity was virtually blind and deaf
739
00:35:49,289 --> 00:35:55,329
running a company in Woodruff's plates
740
00:35:51,639 --> 00:35:59,259
was Roberto Gus waiter my ass Roberto
741
00:35:55,329 --> 00:36:03,190
Gazeta who was born in Cuba had become
742
00:35:59,260 --> 00:36:05,200
the CEO and had announced early on that
743
00:36:03,190 --> 00:36:08,070
there were no sacred cows there were no
744
00:36:05,199 --> 00:36:10,659
sacred formulas he would do anything to
745
00:36:08,070 --> 00:36:14,769
be aggressive and to get this company
746
00:36:10,659 --> 00:36:17,619
going again to going no one at coca-cola
747
00:36:14,769 --> 00:36:20,139
would dare admit it more likely Cola
748
00:36:17,619 --> 00:36:22,809
they had ridiculed for years as the
749
00:36:20,139 --> 00:36:24,369
imitator they were an awkward position
750
00:36:22,809 --> 00:36:25,809
they couldn't say we're making a case
751
00:36:24,369 --> 00:36:28,839
more like Pepsi which is what they were
752
00:36:25,809 --> 00:36:32,230
doing and they couldn't really explain
753
00:36:28,840 --> 00:36:35,010
why they were changing it so they just
754
00:36:32,230 --> 00:36:37,690
said well it's new and improved I do ask
755
00:36:35,010 --> 00:36:39,880
unshaken in his belief that New Coke was
756
00:36:37,690 --> 00:36:42,130
a superior product cause way too
757
00:36:39,880 --> 00:36:45,400
launched a new formula with a tremendous
758
00:36:42,130 --> 00:36:47,380
fanfare inviting over 700 members of the
759
00:36:45,400 --> 00:36:49,590
press to the unveiling at New York's
760
00:36:47,380 --> 00:36:52,329
Lincoln Center
761
00:36:49,590 --> 00:36:56,350
across the country premiere parties
762
00:36:52,329 --> 00:36:59,529
trumpeted new coke Robin you nation
763
00:36:56,349 --> 00:37:01,659
coca-cola and you too will like it just
764
00:36:59,530 --> 00:37:04,840
is everybody here and Robert Woodruff
765
00:37:01,659 --> 00:37:09,129
Park enjoys the taste of coca-cola well
766
00:37:04,840 --> 00:37:11,289
y'all come on down to the bar we despite
767
00:37:09,130 --> 00:37:13,900
the dramatic unveiling things quickly
768
00:37:11,289 --> 00:37:15,880
soured for goys widow and new cook I
769
00:37:13,900 --> 00:37:16,599
don't like it have you tried the new
770
00:37:15,880 --> 00:37:18,579
coaster
771
00:37:16,599 --> 00:37:20,139
what do you think of that so I get very
772
00:37:18,579 --> 00:37:23,500
disappointed I think we've lost the
773
00:37:20,139 --> 00:37:26,799
American tradition that the real taste
774
00:37:23,500 --> 00:37:29,679
is gone down here what the coca-cola
775
00:37:26,800 --> 00:37:31,990
people had forgotten was how well they
776
00:37:29,679 --> 00:37:34,679
had succeeded with their advertising how
777
00:37:31,989 --> 00:37:39,129
well they had made coca-cola a part of
778
00:37:34,679 --> 00:37:41,559
people's everyday lives within a matter
779
00:37:39,130 --> 00:37:43,599
of days goes waiter was rudely awakened
780
00:37:41,559 --> 00:37:47,860
to a fact that Candler and Woodruff had
781
00:37:43,599 --> 00:37:52,369
long known coca-cola had an intensely
782
00:37:47,860 --> 00:37:56,269
loyal following not the real thing
783
00:37:52,369 --> 00:37:58,429
calls flooded cokes 800-number newspaper
784
00:37:56,269 --> 00:38:01,579
editorials blasted the formula change
785
00:37:58,429 --> 00:38:05,109
and new cokes rollout parties in 45
786
00:38:01,579 --> 00:38:07,699
cities turned into angry protests
787
00:38:05,110 --> 00:38:10,519
hundreds and thousands and ultimately
788
00:38:07,699 --> 00:38:13,279
tens of thousands of bitterly angry
789
00:38:10,519 --> 00:38:14,420
phone calls came in and a lot of them
790
00:38:13,280 --> 00:38:17,420
were from people who didn't even drink
791
00:38:14,420 --> 00:38:19,430
coca-cola was just American citizens who
792
00:38:17,420 --> 00:38:21,019
thought that something familiar and
793
00:38:19,429 --> 00:38:23,089
important in their lives had been taken
794
00:38:21,019 --> 00:38:25,519
away from them without their permission
795
00:38:23,090 --> 00:38:28,160
they got these letters saying I wouldn't
796
00:38:25,519 --> 00:38:30,050
be as upset if you'd burn the flag on my
797
00:38:28,159 --> 00:38:31,879
lawn I wouldn't be as upset as if you
798
00:38:30,050 --> 00:38:33,860
told me God was dead I wouldn't be as
799
00:38:31,880 --> 00:38:37,970
upset if you change the American
800
00:38:33,860 --> 00:38:41,570
Constitution I mean this is the changing
801
00:38:37,969 --> 00:38:44,029
the flavor of a soft drink and it
802
00:38:41,570 --> 00:38:46,940
dominated the news for three months it
803
00:38:44,030 --> 00:38:48,620
was unbelievable and finally and they
804
00:38:46,940 --> 00:38:49,460
had psychologists listening in on the
805
00:38:48,619 --> 00:38:52,940
800-number
806
00:38:49,460 --> 00:38:55,280
wine who said that these people sounded
807
00:38:52,940 --> 00:38:57,500
as if a family member had died that was
808
00:38:55,280 --> 00:39:00,620
the way they felt we have planned the
809
00:38:57,500 --> 00:39:03,849
attack the angry letters poured in and
810
00:39:00,619 --> 00:39:06,500
one message rang through loud and clear
811
00:39:03,849 --> 00:39:10,880
there's no way you're not taking my
812
00:39:06,500 --> 00:39:15,559
coca-cola away if Pepsi was the imitator
813
00:39:10,880 --> 00:39:18,470
just what was new coke all the company's
814
00:39:15,559 --> 00:39:19,480
years of smug superiority came crashing
815
00:39:18,469 --> 00:39:22,869
down
816
00:39:19,480 --> 00:39:26,840
Pepsi of course had a field day
817
00:39:22,869 --> 00:39:29,569
Pepsi very cleverly declared a holiday
818
00:39:26,840 --> 00:39:32,240
in celebration that announced that they
819
00:39:29,570 --> 00:39:34,289
had won the cola wars let everybody off
820
00:39:32,239 --> 00:39:36,809
for a day
821
00:39:34,289 --> 00:39:40,019
the formula change boosted more than
822
00:39:36,809 --> 00:39:42,750
pepsi self-confidence Pepsi sales surged
823
00:39:40,019 --> 00:39:48,840
as well Pepsi became the top-selling
824
00:39:42,750 --> 00:39:52,050
Cola in the world by July boys Wetty had
825
00:39:48,840 --> 00:39:56,100
had enough the old formula was back and
826
00:39:52,050 --> 00:39:57,900
soon so was cokes market share the news
827
00:39:56,099 --> 00:40:01,159
about the introduction of coca-cola
828
00:39:57,900 --> 00:40:04,230
classic ran on the Dow Jones wire at
829
00:40:01,159 --> 00:40:07,559
3:18 p.m. yesterday
830
00:40:04,230 --> 00:40:10,199
once coca-cola classic came back it was
831
00:40:07,559 --> 00:40:12,420
wildly successful the same beverage that
832
00:40:10,199 --> 00:40:15,329
had been losing market share for 20
833
00:40:12,420 --> 00:40:17,309
years started to gain it so much so that
834
00:40:15,329 --> 00:40:19,199
many people think that they did this on
835
00:40:17,309 --> 00:40:22,259
purpose there's this sort of folklore
836
00:40:19,199 --> 00:40:26,189
that the coke guys did this whole new
837
00:40:22,260 --> 00:40:27,960
coke thing fiasco as a marketing ploy
838
00:40:26,190 --> 00:40:30,179
because of what happened from it or let
839
00:40:27,960 --> 00:40:33,750
me tell you it was not a marketing ploy
840
00:40:30,179 --> 00:40:36,089
they screwed up there was the marketing
841
00:40:33,750 --> 00:40:39,780
blunder of the century but it came out
842
00:40:36,090 --> 00:40:41,910
well for them today Coke and Pepsi are
843
00:40:39,780 --> 00:40:46,109
locked in mortal kombat for market share
844
00:40:41,909 --> 00:40:48,989
and not just in Cola both companies have
845
00:40:46,108 --> 00:40:51,779
expanded into multiple brands coke with
846
00:40:48,989 --> 00:40:56,219
Minute Maid sprite surge and a multitude
847
00:40:51,780 --> 00:40:59,690
of others other Pepsi brands include
848
00:40:56,219 --> 00:41:02,669
Tropicana Mountain Dew and slice and
849
00:40:59,690 --> 00:41:06,900
then there are the myriad offsprings of
850
00:41:02,670 --> 00:41:09,480
their marquee products FC also owns
851
00:41:06,900 --> 00:41:14,430
Frito Lay the number one snack food
852
00:41:09,480 --> 00:41:17,608
company in the world in the mid 1980s
853
00:41:14,429 --> 00:41:20,309
flush with cash both companies were on a
854
00:41:17,608 --> 00:41:23,159
buying spree expanding well beyond the
855
00:41:20,309 --> 00:41:24,920
beverage markets they dominated coke
856
00:41:23,159 --> 00:41:27,899
bought Columbia Pictures
857
00:41:24,920 --> 00:41:31,829
PepsiCo bought Kentucky Fried Chicken
858
00:41:27,900 --> 00:41:33,960
Taco Bell and Pizza they both since
859
00:41:31,829 --> 00:41:38,840
divested those spin-offs sticking to
860
00:41:33,960 --> 00:41:38,840
what they do best marketing beverages
861
00:41:39,409 --> 00:41:45,239
the cola wars continued unabated a
862
00:41:42,920 --> 00:41:47,250
worldwide struggle that's more than just
863
00:41:45,239 --> 00:41:48,719
a war for market share
864
00:41:47,250 --> 00:41:52,789
more than a mere battle for the
865
00:41:48,719 --> 00:41:57,179
consumers spare change the passions of
866
00:41:52,789 --> 00:41:59,159
cola loyalty come from all the
867
00:41:57,179 --> 00:42:01,079
psychology of the advertising and
868
00:41:59,159 --> 00:42:03,929
marketing that we grow up with families
869
00:42:01,079 --> 00:42:07,199
or coke families or Pepsi families it's
870
00:42:03,929 --> 00:42:09,059
almost like North and South and what the
871
00:42:07,199 --> 00:42:10,939
product actually tastes like is only a
872
00:42:09,059 --> 00:42:13,769
small part of that you can't really
873
00:42:10,940 --> 00:42:16,740
separate the psychological impact of the
874
00:42:13,769 --> 00:42:21,119
trademark and what it evokes in you from
875
00:42:16,739 --> 00:42:23,489
the actual product itself to some the
876
00:42:21,119 --> 00:42:26,579
cooler war is about far more than simple
877
00:42:23,489 --> 00:42:28,529
rival companies or rival flavors it's an
878
00:42:26,579 --> 00:42:32,069
epic battle between two competing
879
00:42:28,530 --> 00:42:34,800
ideologies between right and wrong or
880
00:42:32,070 --> 00:42:38,190
good and evil I believe the Coke and
881
00:42:34,800 --> 00:42:41,550
Pepsi together this cold war they've
882
00:42:38,190 --> 00:42:43,800
been in for decades now actually help
883
00:42:41,550 --> 00:42:45,150
each other sell an awful lot of product
884
00:42:43,800 --> 00:42:45,900
I think they've been they've been good
885
00:42:45,150 --> 00:42:49,380
for each other
886
00:42:45,900 --> 00:42:52,619
so had coke ended up with a monopoly on
887
00:42:49,380 --> 00:42:55,640
the Cola beverage what would have
888
00:42:52,619 --> 00:42:55,639
happened who knows
63691
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