The Coke Machine: The Dirty Truth Behind the World's Favorite Soft Drink
Page 34
Page 28 first of an eventual $8 million: The Emory Alumnus 27, no. 10 (December 1951), 3.
Page 28 mortgaged his own fortune: Candler, Asa Griggs Candler, 309-320.
Page 29 raising water rates . . . urged rich citizens: Pendergrast, 125-126.
Page 29 Howard was a lackluster president: Pendergrast, 126-127.
Page 29 head of the Atlanta Chamber . . . take over the company now: Allen, 91.
Page 29 His occupation was to make money: Tedlow, 56.
Page 29 breaking into a rival’s office: Allen, 92-94.
Page 29 strapping $2 million in bonds to himself: Dietz, 97.
Page 29 secured signatures . . . $10 million in stock: Allen, 95-97; Pendergrast, 130.
Page 29 largest financial transaction: Kahn, 61.
Page 29 Not one of the children said a word: Candler, Asa Griggs Candler, 184.
Page 29 syndicate of three banks . . . three-man Voting Trust: Allen, 97-99; Pendergrast, 131.
Page 30 nearly 250 bottling plants . . . more than 1,000: The Coca-Cola Company, “Bottling Plants, 1886-1940,” Records of The Coca-Cola Co.; Tedlow, p. 44.
Page 30 price of sugar, which skyrocketed: Allen 104; Pendergrast, 127, 139.
Page 30 “parent bottlers” . . . $1.20 a gallon: Allen, 107-109.
Page 30 “contracts at will”: Pendergrast, 136.
Page 31 bottlers countered with a sliding scale: Allen, 114.
Page 31 The bottlers sued: Allen, 116.
Page 31 leeches . . . pocketed $5 million: Pendergrast, 138; Allen, 117.
Page 31 forced Dobbs to resign: Pendergrast, 139; Allen, 119-120.
Page 31 verdict in the bottler case: Pendergrast, 140-141.
Page 31 offered a compromise: Bottler agreement amendment, January 6, 1920, exhibit, The Coca-Cola Bottling Co. v. The Coca-Cola Company, U.S. District Court for the District of Delaware, 1920.
Page 31 take another sixty-five years: Hays, 24.
Page 31 back above $40: Allen, 138.
Page 31 to $24 million by 1923: The Coca-Cola Company, Annual Report, 1924.
Page 32 “They sold out a big share”: Candler, Asa Griggs Candler, 185.
Page 32 “I sometimes think that once”: Pendergrast, 132.
Page 32 “The syrup of life by now”: Watters, 109.
Page 32 scandalized Atlanta society: Pendergrast, 132; Allen, 152.
Page 32 “Everybody is dead but me”: Asa Candler testimony, My-Coca Company v. Baltimore Process Company, 1924.
Page 32 dying alone in a New York City hotel room: Pendergrast, 133.
Page 32 millions of dollars a year: The Coca-Cola Company, Annual Report, 1929.
CHAPTER 2. BUILDING THE BRAND
Page 36 “a woman with three breasts”: E. S. Turner, The Shocking History of Advertising! (New York: E. P. Dutton, 1953), 21-23.
Page 36 the first serious ads . . . runaway slaves: Sivulka, 7, 12.
Page 36 wine, wigs, and perfumes: Turner, 70-71.
Page 36 first advertising agency . . . succeed on its own merit: Stephen Fox, Mirror Makers: A History of American Advertising and Its Creators (Urbana and Chicago: University of Illinois Press, 1997), 14-15.
Page 36 first industry to throw good taste . . . collectible trade cards: Bingham, 117-124, 129-132.
Page 36 “step a mile into the open country”: Young, 122.
Page 36 One enterprising laxative maker . . . U.S. Government turned him down: David W. Dunlap, “Miss Liberty’s Scrapbook,” New York Times, May 18, 1986; Zach Nauth, “Some Trying to Cash In on Lady Liberty,” Los Angeles Times, March 30, 1985.
Page 37 new way to reach the masses: Young, 38-39.
Page 37 11 million medicine ads . . . name of a tablet or salve: Bingham, 113-114.
Page 37 “I can advertise dish water”: Young, 101.
Page 37 “The Army protects our country”: Carson, 100.
Page 37 Hembold’s Extract of Buchu: Sivulka, 39-40.
Page 37 half-robed girl entering or exiting a bath: Carson, 15, 25, 33, 103; Bingham, 107, color insert 39-40.
Page 37 “The greatest advertising men of my day”: Turner, 138-139.
Page 37 necessity for products sold nationally: Turner, 170-171; Jeffrey Schrank, Snap, Crackle, and Popular Taste: The Illusion of Free Choice in America (New York: Dell, 1997), 109-110.
Page 37 concept of a “brand”: Sivulka, 48.
Page 37 from mere middlemen to full-stop shops: Fox, 13.
Page 38 developing cloying catchphrases: Turner, 110-111.
Page 38 “How really different was this product”: Tedlow, 27.
Page 38 spent more than $70 . . . earning less than $50: Pendergrast, 31, 475; Allen, 29.
Page 38 Coke’s Spencerian script . . . advertising accrual: Watters, 50.
Page 38 advertising budget had swollen to more than $11,000: Louis and Yazijian, 23.
Page 38 Coke’s very first ad: Atlanta Journal, May 26, 1886.
Page 39 touting the drink as refreshment and “nerve tonic”: Pendergrast, 30; Allen, 36.
Page 39 “satisfies the thirsty”: Louis and Yazijian, 95.
Page 39 Alfred Lasker . . . “We Do the Rest”: Fox, 50.
Page 39 “Instead of advertising to one man”: Robinson testimony, Rucker, 86.
Page 39 total of $29,500 . . . almost entirely removed: Allen, 43-45.
Page 39 E. W. Kemble and especially Samuel Hopkins Adams: Young, 215-217.
Page 40 procession of smiling, fancily dressed Victorian women: Dietz, 50; Goodrum, 90.
Page 40 convulsive demographic changes: Mady Schutzman, The Real Thing: Performance, Hysteria, & Advertising (Hanover, NH, and London: Wesleyan University Press, 1999), 36.
Page 40 “evidence of leisure”: Thorstein Veblen, The Theory of the Leisure Class (Amherst, NY: Prometheus, 1998 [orig. pub. 1899]), 265, 171; see also Rob Walker, Buying In: The Secret Dialogue Between What We Buy and Who We Are, (New York: Random House, 2008), 64-65.
Page 40 “The President drinks Coke”: Paul Richard, “Andy Warhol, the Ghostly Icon: At the N.Y. Show, Summoning Images of the Pop Legend,” Washington Post, February 6, 1989.
Page 40 “the effect of modern advertising”: Fox, 70.
Page 41 subconscious desires: Turner, 146.
Page 41 especially adopted by makers of luxury items: Sivulka, 117.
Page 41 took over advertising from the older Frank Robinson: Candler, Asa Griggs Candler, 139.
Page 41 Dobbs dumped Massengale . . . baseball legend Ty Cobb: Dietz, 50-52.
Page 41 circuses, cigarettes . . . soft drink companies . . . “Interestingly enough”: Tom Reichert, The Erotic History of Advertising (Amherst, NY: Prometheus Books, 2003), 29, 46, 88.
Page 42 One 1910 ad . . . no “hint of impurity”: Watters, 218.
Page 42 “clean, truthful, honest publicity”: Allen, 79.
Page 42 “claiming nothing for Coca-Cola”: Watters, 98.
Page 42 half a million dollars a year: Watters, 98.
Page 42 more than $750,000: Dietz, 52.
Page 42 “best advertised article in America”: Graham and Roberts, 62.
Page 42 spent $1.4 million . . . just one year: Dietz, 55.
Page 43 Coke’s sales declined: Pendergrast, 128.
Page 43 frequent trips to Washington . . . limited syrup producers: Allen, 89.
Page 43 “Making a Soldier of Sugar”: Martin Shartar and Norman Shavin, The Wonderful World of Coca-Cola (Atlanta: Perry Communications, 1978), 39.
Page 43 “Lobby furiously behind the scenes”: Allen, 89.
Page 43 “the very joy of living to Our Boys”: Sivulka, 134.
Page 44 A lackluster student . . . manual laborer: Charles Elliott, “Mr. Anonymous”: Robert W. Woodruff of Coca-Cola (Atlanta: Cherokee, 1982), 87-91.
Page 44 born salesman: Elliott, 93-96.
Page 44 By 1922, he was: Elliott, 97.
Page 44 Ernest Woodruff both resented and admired: Allen, 154.
Page 44
established itself as the national brand: Tedlow, 55; Kahn, 123.
Page 44 “The chief economic problem” . . . anxieties of not owning: Fox, 94-95.
Page 45 brief attempt to increase rural sales: Dietz, 44; Waters, 149.
Page 45 “within an arm’s reach of desire”: Allen, 158.
Page 45 newspaper reporter in North Carolina: Watters, 147.
Page 45 “A man who can see life”: Dietz, 101-102.
Page 45 writing the entire Coca-Cola campaign: Dietz, 104.
Page 45 some of the best artists of the day: Pendergrast, 160.
Page 45 most memorable slogans: Louis and Yazijian, 44; Gyvel Young-Witzel and Michael Karl Witzel, The Sparkling History of Coca-Cola (Stillwater, MN: Voyageur Press, 2002), 95.
Page 46 Woodruff created a Statistical Department: Pendergrast, 161-163.
Page 46 “Salesmen should keep calling”. . . “We can count”: Tedlow, 33-35.
Page 46 quadrupling from $40 to $160: Allen, 176.
Page 47 $4 million . . . a cool million: Allen, 177.
Page 47 celebrity endorsements: Pendergrast, 175.
Page 47 an extra $1 million: Allen, 204.
Page 47 top twenty-five advertisers: Tedlow, 86.
Page 47 gradually following the lead: Barbara Fahs Charles and Robert Staples, Dream of Santa: Haddon Sundblom’s Vision (Washington, DC: Staples & Charles, 1992), 14.
Page 47 children leaving a Coke: V. Dennis Wrynn, Coke Goes to War (Missoula, MT: Pictorial Histories, 1996), 23.
Page 48 Profits of $14 million . . . $29 million: The Coca-Cola Company Annual Reports 1934 and 1939.
Page 48 “the essence of capitalism”: Robert Woodruff, interview by E. J. Kahn, 1.
Page 48 personally transferred it by train: Dietz, 97.
Page 48 “Robert Woodruff could still look”: Louis and Yazijian, 45.
Page 48 a backlash against the greed of corporations: Beatty, 263-272.
Page 48 he up and moved to Wilmington: Wells, 115.
Page 48 available everywhere . . . available for a nickel: Louis and Yazijian, 56.
Page 48 “The opening of foreign markets is a costly undertaking”: The Coca-Cola Company, Annual Report, 1928, 63.
Page 49 “His reward was a bottle of Coca-Cola”: Camilia Ascher Restrepo, “War in the Times of Coke,” Cokeheads: Exploring the New World of Coke, group project of English 752: Historical Tourism, Emory University (2008).
Page 49 twenty-four-page pamphlet . . . “A nation at war”: The Coca-Cola Company, “Importance of the Rest-Pause in Maximum War Effort” (1942).
Page 49 One of Coke’s own . . . offered an exemption: Pendergrast, 196-197.
Page 50 reportedly had been in talks with the government: Louis and Yazijian, 67.
Page 50 order signed by General George C. Marshall . . . North Africa campaign: Pendergrast, 198-201; Allen, 255.
Page 50 “You don’t fuck with Coca-Cola!”: Howard Fast, Being Red (Boston: Houghton Mifflin, 1990), 10.
Page 50 “If anyone were to ask us”: Pendergrast, 206.
Page 50 “To my mind, I am”: Kahn, 12.
Page 50 full-color ads: Wrynn, 37-78.
Page 50 One ad in 1946 . . . A sign at Coke’s own: Louis and Yazijian, 78.
Page 51 Ray Powers . . . ending “Heil Hitler”: Pendergrast, 214.
Page 51 Max Keith . . . mustache: Pendergrast, 217-219.
Page 51 Nazi Youth rallies . . . bottler conventions: Pendergrast, 220-221.
Page 51 Keith wangled an appointment . . . Nazi general: Pendergrast, 221-223.
Page 51 Coca-Cola investigators . . . modest amount of profit: Allen, 264.
Page 52 sixty-three overseas bottling plants, financed for $5.5 million: Allen, 265.
Page 52 just 20 percent of one year’s net profits: The Coca-Cola Company, Annual Report, 1945.
Page 52 In 1950, Time magazine: Time, May 15, 1950.
Page 52 shifting from D’Arcy to a new agency: Dietz, 167; Sivulka, 265.
Page 52 the company was unexpectedly rudderless: Allen, 297.
Page 52 falling flat in the messier conflict with Korea: Watters, 224.
Page 53 Madison Avenue again turned . . . attribute that sets a product apart: Mark Tungate, Ad Land: A Global History of Advertising (London: Kogan Page, 2007), 44.
Page 53 North Carolina pharmacist . . . stomachache: Milward W. Martin, Twelve Full Ounces: The Story of Pepsi-Cola (New York: Holt, Rinehart and Winston, 1962), 5-7.
Page 53 three hundred bottlers in twenty-four states: Martin, 28-31.
Page 53 spike in sugar prices all but put it out of business: Martin, 33-45.
Page 53 The company probably would have died . . . $50,000 in 1933: Pendergrast, 188-190. Page 53 12-ounce beer bottles . . . $4 million in 1938: Martin, 60-61.
Page 53 infectious jingle: Martin, 103-104.
Page 54 went straight to the government . . . any company could use: Allen, 243-244. Page 54 Coke sued for peace: Allen, 191-192.
Page 54 “Stay young and fair” . . . $14 million by 1955: Martin, 133.
Page 54 Coke’s market share began slipping . . . “Coke can hardly”: Pendergrast, 256. Page 54 “For those who think young”: Sivulka, 261.
Page 54 In 1956 . . . $53 million a year: Vance Packard, The Hidden Persuaders (New York: Simon & Schuster, 1953), 95.
Page 55 surveying customers in all of 1.6 million retail outlets: Kahn, 153.
Page 55 newfangled approach of “motivational research”: Packard, 23, 215.
Page 55 Maidenform . . . exploited: Sivulka, 267.
Page 55 “possible symbolic mistress”: Packard, 82.
Page 55 “The greater the similarity”: Packard, 17.
Page 55 Vance Packard exposed the “depth boys”: Packard, 24-25.
Page 55 researcher named James Vicary . . . made the whole thing up: August Bullock, The Secret Sales Pitch: An Overview of Subliminal Advertising (San Jose, CA: Norwich, 2004), 8-10; Stuart Rogers, “How a Publicity Blitz Created the Myth of Subliminal Advertising,” Public Relations Quarterly 37, no. 4 (Winter 1992/1993), 12-17.
Page 55 Advertisers further denounced: Max Sutherland and Alice K. Sylvester, Advertising and the Mind of the Consumer: What Works, What Doesn’t, and Why (St. Leonard’s, Australia: Allen & Unwin, 2000 [orig. pub. 1993]), 35.
Page 56 “You’d have to be an idiot” . . . “it’s precisely because we don’t”: Rob Walker, Buying In: The Secret Dialogue Between What We Buy and Who We Are (New York: Random House, 2008), 111, 68.
Page 56 Coke redoubled its efforts . . . to fill in the blank: Allen, 323; Pendergrast, 273; Louis and Yazijian, 233-234.
Page 56 both companies had an advertising style: Pendergrast, 274.
Page 56 Between 1954 and 1964 . . . 227 in 1964: Allen, 322.
Page 56 got over its single-product fetish: Allen, 330; Pendergrast, 272, 277-278.
Page 57 confronted the changing reality of America: Fox, 272.
Page 57 company stayed on the sidelines: Pendergrast, 266; Louis and Yazijian, 87.
Page 57 “I’ve heard the phrase”: Kahn, 158.
Page 57 Woodruff personally risked . . . company dragged its feet: Allen, 338-339; Pendergrast, 280-282.
Page 57 no soldier made of sugar in Danang: Allen, 349; Pendergrast, 286-287.
Page 57 Pepsi filled the gap: Pendergrast, 288.
Page 57 reached into the World War II archive to pull out: Pendergrast, 288.
Page 57 campaign protesting the deplorable conditions: Pendergrast, 293-295.
Page 58 effectively ended union representation: Jerry Jackson, “Grove Sale Deals Blow to Labor: Coca-Cola Transaction Cancels State’s Only Field Worker Contract,” Orlando Sentinel , February 14, 1994.
Page 58 company launched new initiatives: Pendergrast, 291, 296; Allen, 356.
Page 58 plane was fogged in . . . “a tiny bit of commonality”: Coca-Cola Heritage, “‘I’d Like to Buy the World a Coke’—The Hilltop Story,” http://www.thecoca-colacompan
y.com/heritage/cokelore_hilltop.html.
Page 58 the shoot was a nightmare: Pendergrast, 300.
Page 58 “sure-fire form of subliminal advertising”: “Have a Coke, World,” Newsweek, January 3, 1972.
Page 58 “Look Up, America!”: Pendergrast, 305-306.
Page 58 sales of soft drinks continued to soar: William Moore and Peter Buzzanell, Trends in U.S. Soft Drink Consumption. Demand Implications for Low-Calorie and Other Sweeteners, Sugar and Sweeteners: Situation and Outlook Report. U.S. Department of Agriculture, Economic Research Service, September 1991.
Page 59 “At Pepsi, we like the Cola Wars”: Tedlow, 104.
Page 59 new regional manager decided . . . liked Pepsi better: Thomas Oliver, The Real Coke, the Real Story (New York: Penguin, 1987), 49-53.
Page 59 The campaign doubled market share: Oliver, The Real Coke, the Real Story, 56-58.
Page 59 realized the scorched-earth tactics . . . “The Pepsi Challenge”: Tedlow, 106.
Page 59 more traditional forms of advertising: Al Reis and Jack Trout, The 22 Immutable Laws of Marketing (New York: HarperBusiness, 1993), 81.
Page 60 high of 60 percent after World War II: Allen, 402.
Page 60 just 22 percent . . . “advertising alone couldn’t”: Oliver, The Real Coke, the Real Story, 118.
Page 60 fled the island . . . learned the secret formula: Hays, 68-77.
Page 60 rise to the top . . . hotly contested top slot: Hays, 77-79, 89.
Page 60 “There are no sacred cows”: Oliver, The Real Coke, the Real Story, 74.
Page 61 The company should have known better: Oliver, The Real Coke, the Real Story, 127.
Page 61 The project was so secret: Oliver, The Real Coke, the Real Story, 138.
Page 61 Company executives stood: Oliver, The Real Coke, the Real Story, 155.
Page 61 montage of cowboys: Allen, 411.
Page 61 press corps leaped . . . Pepsi had nothing to do with it: Oliver, The Real Coke, the Real Story, 159-167.
Page 61 more than 400,000: Roger Enrico and Jesse Kornbluth, The Other Guy Blinked: How Pepsi Won the Cola Wars (Toronto: Bantam, 1986), 14.
Page 61 “You’ve taken away my childhood”: Hays, 118-119.
Page 61 “Changing Coke is like”: Allen, 414.
Page 61 “We have heard you” . . . “I think, by the end”: Matt Haig, Brand Failures: The Truth About the Biggest Branding Mistakes of All Time (London: Kogan Page, 2003), 17; Enrico and Kornbluth, 238.