The Coke Machine: The Dirty Truth Behind the World's Favorite Soft Drink
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Page 62 again topped Pepsi in market share: Reis and Trout, 23.
Page 62 “A lot of people said”: Sergio Zyman, The End of Marketing As We Know It (New York: HarperBusiness, 1999), 49.
CHAPTER 3. BIGGERING AND BIGGERING
Page 63 hundredth-anniversary celebration: Ron Taylor, “Coke Bills Party as Biggest Ever in Atlanta,” Atlanta Journal-Constitution, May 10, 1986; Howard Pousher, “Epic Feast for 14,000,” Atlanta Journal-Constitution, May 10, 1986.
Page 64 focusing everything on their quarterly earnings: John D. Martin and J. William Petty, Value Based Management: The Corporate Response to the Shareholder Movement (Boston: Harvard Business School Press), 13-28.
Page 64 “shareholder value movement”: Betsy Morris, “The New Rules,” Fortune, August 2, 2006.
Page 64 cutting waste and inefficiency: Allan A. Kennedy, The End of Shareholder Value (Cambridge, MA: Perseus, 2002), 49-61.
Page 64 rushed to please Wall Street: Betsy Morris, “Tearing Up Jack Welch’s Playbook,” Fortune, July 11, 2006; Kennedy, 164-166.
Page 64 hurt the long-term success of their companies: Kennedy, xi, 63-66; “Buy Now, While Stocks Last,” The Economist, July 17, 1999; John Cassidy, “The Greed Cycle: How the Financial System Encouraged Corporations to Go Crazy,” The New Yorker, September 23, 2002.
Page 64 no CEO was associated: Hays, 90.
Page 64 “I wrestle over how to build”: Faye Rice et al., “Leaders of the Most Admired,” Fortune, January 29, 1990.
Page 64 had a computer screen installed: Hays, 67.
Page 64 another screen at the main entrance: Betsy Morris, “Roberto Goizueta and Jack Welch: The Wealth Builders,” Fortune, December 11, 1995.
Page 64 sloughed off divisions . . . The Karate Kid: Pendergrast, 340-342, 346.
Page 65 “a most unique company”: Morris, “Roberto Goizueta and Jack Welch: The Wealth Builders.”
Page 65 increasing per capita consumption: Hays, 92-93.
Page 65 “If we take full advantage”: Pendergrast, 367.
Page 65 C on the kitchen faucet: “A Conversation with Roberto Goizueta and Jack Welch,” Fortune, December 11, 1995.
Page 65 “biggering and biggering”: Dr. Seuss, The Lorax (New York: Random House, 1971).
Page 65 As the 1990s dawned . . . annual growth in earnings: Hays, 41.
Page 65 Goizueta personally called the Wall Street analysts: Hays, 128-129.
Page 65 “If you weren’t owning Coke”: Hays, 138.
Page 65 “the closest thing we know of”: “CEO of the Year 1996,” Chief Executive, July 1, 1996.
Page 65 Stock prices rose: Hays, 129-131.
Page 66 Goizueta profited handsomely: Ira T. Kay, CEO Pay and Shareholder Value: Helping the U.S. Win the Global Economic War (Boca Raton, FL: St. Lucie Press, 1998), 113; Stacy Perman, “The Man Who Knew the Formula,” Time, June 24, 2001.
Page 66 largest single payout: Hays, 136.
Page 66 “King Size”. . . “Family Size” bottles: Pendergrast, 256-257.
Page 66 “Cheap corn, transformed”: Michael Pollan, “The Agricultural Contradictions of Obesity,” New York Times Magazine, October 12, 2003.
Page 67 rolled out a 50 percent . . . 100 percent HFCS version: “Sugar: A Sticky Boom,” The Economist, October 18, 1980; Rosalind Resnick, “Bad News for Latin Sugar,” Miami Herald, March 16, 1986.
Page 67 concept of “supersizing” really caught on: Melanie Warner, “Does This Goo Make You Groan?” New York Times, July 2, 2006.
Page 67 in the 1990s a 21-ounce medium soda: Eric Schlosser, Fast Food Nation: The Dark Side of the All-American Meal (New York: Houghton Mifflin, 2002 [orig. pub. 2001]), 54.
Page 67 customers could request . . . a quarter of soft drink sales: Greg Critser, Fat Land: How Americans Became the Fattest People in the World (Boston: Houghton Mifflin, 2003), 20-28.
Page 67 It was the same story at the 7-Eleven: Warner, “Does This Goo Make You Groan?”; Francine R. Kaufman, Diabesity: The Obesity-Diabetes Epidemic That Threatens America—And What We Must Do to Stop It (New York: Bantam, 2005), 152.
Page 67 “The Beast”: Ellen Ruppel Shell, The Hungry Gene: The Inside Story of the Obesity Industry (New York: Grove Press, 2002), 205.
Page 67 With two-thirds of the fountain sales: Scott Leith, “Fountain Sales Are a Weak Point for Coca-Cola,” Atlanta Journal-Constitution, December 31, 2002.
Page 68 “Bigger is better”: Hank Cardello, Stuffed: An Insider’s Look at Who’s (Really) Making America Fat (New York: HarperCollins, 2009), 18-19.
Page 68 new 20-ounce bottle: Martha T. Moore, “Coke’s Curvy Shape Is Back,”USA Today, March 28, 1994.
Page 68 reversing years of discounts: Kent Phillips, “Re-Profitizing the Industry,” Beverage World, September 1996.
Page 68 “Our goal was to make Coca-Cola ubiquitous”: Cardello, 134.
Page 68 “We’re putting ice-cold”: The Coca-Cola Company, Annual Report, 1997.
Page 68 “the most important meal of the day”: Chris Warren, “Start the Day Right: Harness the Profit Potential of Breakfast,” Refreshing News, Spring/Summer 2006, Coca-Cola Food Service.
Page 68 56.1 gallons . . . been in 1970: Marc Kaufman, “Fighting the Cola Wars in Schools,” Washington Post, March 23, 1999; Michael Jacobson, Liquid Candy: How Soft Drinks Are Harming Americans’ Health, Center for Science in the Public Interest, 2005 (rev. ed.); Bill Lohmann, “Soft Drinks Vie for Top Position,” United Press International, April 14, 1985.
Page 68 reclaimed 45 percent of the market: Frank Gibney, Jr., “Pepsi Gets Back in the Game: The Company Is on the Rebound with a New Vision, and an Old Problem: Coke,” Time, April 26, 1999.
Page 69 more than $4 billion in net income: Associated Press, “Coke CEO Aims at 2B Servings Daily,” March 3, 1998.
Page 69 3,500 percent increase . . . $88 a share by 1998: Dean Foust, “Coke’s Man on the Spot,” BusinessWeek, May 3, 1999.
Page 69 “We don’t know how”: Morris, “Roberto Goizueta and Jack Welch: The Wealth Builders.”
Page 69 Coke’s annual spending on advertising: Naomi Klein, No Logo: Taking Aim at the Brand Bullies (New York: Picador, 1999), 471.
Page 69 alienating many: Hays, 123-124; Pendergrast, 400.
Page 69 “move the needle”: Zyman, 3-5, 118, 172.
Page 69 “The sole purpose of marketing”: Zyman, 11.
Page 69 “spending to sell” . . . “we poured on more”: Zyman, 15.
Page 69 The domestic ad budget rose: Klein, No Logo, 471.
Page 70 It was Zyman’s job: Zyman, 138.
Page 70 “These are the consumers”: Zyman, 125.
Page 70 “dimensionalizing”... at every occasion: Zyman, 124, 129.
Page 70 compete for Coke’s vast advertising war chest: Zyman, 207.
Page 71 Hollywood powerhouse Creative Artists Agency: Naomi Klein, No Logo, 59.
Page 71 computer-generated family of polar bears: Matthew Grimm, “Coke Plans to Put Its Polar Bears to Work,” Adweek, June 21, 1993; Dottie Enrico, “Coke’s Polar Bear Is a Papa Bear,” USA Today, December 8, 1994.
Page 71 Philip Morris cut the price . . . death knell for the brand: Klein, No Logo, 12-13.
Page 71 “We are getting a bum rap”: John Huey, “The World’s Best Brand CEO,” Fortune, May 31, 1993.
Page 71 companies that succeeded . . . top of her list: Klein, No Logo, 21.
Page 71 original World of Coca-Cola: Klein, No Logo, 29.
Page 72 worth more than a billion dollars: Hays, 170.
Page 72 able to avoid paying: David Cay Johnston, Perfectly Legal: The Covert Campaign to Rig Our Tax System to Benefit the Super Rich—and Cheat Everybody Else (New York: Portfolio, 2003), 51.
Page 72 if anything, more relentless . . . “From his earliest”: Hays, 31-34.
Page 72 buying up any bottlers that were for sale: Oliver, The Real Coke, the Real Story, 31-42.
Page 72 own 49 percent: Hays, 42.
Page 72 forced the new bottling company: Hays, 52-53.
Page 73 “anchor bottlers”: Roberto C. Goizueta, “The Emerging Post-Conglomerate Era: Changing the Shape of Corporate America,” January 1988.
Page 73 rolled right off Coke’s books: Hays, 62.
Page 73 “new era in American capitalism”: Goizueta, “The Emerging Post-Conglomerate Era.”
Page 73 force bottlers to buy syrup: Hays, 151.
Page 73 “marketing support”: Hays, 154.
Page 73 enormous amounts of debt: Hays, 157.
Page 73 “iceman” . . . phones were tapped: Hays, 174-176.
Page 73 “360-degree landscape of Coke”: Hays, 7.
Page 73 “What I always wonder”: Hays, 175.
Page 74 all but howling along: Hays, 35.
Page 74 Coke showed no quarter: Hays, 190.
Page 74 restrictive advertising agreements: Hays, 242-243.
Page 74 Royal Crown Cola sued: Hays, 245.
Page 74 difficulty meeting its high earnings expectations: Huey, “The World’s Best Brand CEO.”
Page 74 less than 20 percent of Pepsi’s business: “Coca-Cola Boosts Water Sales, Still Trailing Pepsi,” Bloomberg News, August 20, 2006.
Page 74 more than 80 percent of its sales: Joe Guy Collier, “Worldwide Sales a Tonic for Coke,” Atlanta Journal-Constitution, November 16, 2008.
Page 75 “Coke fiends” . . . overtly racist coverage: Allen, 46-47.
Page 76 “increased amounts of poisonous and toxic matters”: Harvey W. Wiley, The History of a Crime Against the Food Law (Washington, DC: Harvey W. Wiley, 1929), 29.
Page 76 “poison squad”: Wiley, 57-62.
Page 76 weren’t exactly scientifically rigorous: Clayton A. Coppin and Jack High, The Politics of Purity: Harvey Washington Wiley and the Origins of Federal Food Policy (Ann Arbor: University of Michigan Press, 1999), 55.
Page 76 went on the attack . . . self-promoter: Coppin and High, 3-5.
Page 76 nemesis, however, would be . . . railed against Coke: Pendergrast, 115.
Page 77 addition of “free caffeine” . . . neither coca leaves nor kola nut: Coppin and High, 142-145.
Page 77 couldn’t be considered an additive: Coppin and High, 151.
Page 77 having left town . . . Wilson force him out: Allen, 62-64.
Page 77 all the way up to the Supreme Court . . . Coke’s new formula: Pendergrast, 121-122.
Page 78 policy on Southwest Airlines: Charles Passy, “Little Wiggle Room for XXL Passengers,” New York Times, October 15, 2006; Michelle Higgins, “Excuse Me, Is This Seat Taken?” New York Times, February 28, 2010.
Page 78 motorized carts Wal-Mart now offers: Michael Leahy, “The Weight,” Washington Post Magazine, July 18, 2004.
Page 78 from 14 percent . . . to 34 percent today: Katherine M. Flegal et al., “Prevalence and Trends in Obesity Among US Adults, 1999-2008,” Journal of the American Medical Association 303, no. 3 (January 2010), 235-241.
Page 78 some 75 million people: Calculated from U.S. Census, “Annual Estimates of the Resident Population by Sex and Five-Year Age Groups for the United States: April 1, 2000 to July 1, 2008 (NC-EST2008-01).”
Page 78 more than two-thirds of the adult U.S. population: Flegal et al., “Prevalence and Trends in Obesity Among US Adults, 1999-2008.”
Page 78 increased risks for diseases: Flegal et al., “Prevalence and Trends in Obesity Among US Adults, 1999-2008”; U.S. Surgeon General, “Overweight and Obesity: Health Consequences” (Rockville, MD, 2001).
Page 79 obese teenagers . . . obese children: Cynthia L. Ogden et al., “Prevalence of High Body Mass Index in U.S. Children and Adolescents, 2007-2008,” Journal of the American Medical Association 303, no. 3 (2010), 242-249.
Page 79 a 2006 conference in Boston: Public Health Advocacy Institute, Fourth Annual Conference on Legal Approaches to the Obesity Epidemic, Northeastern University School of Law, November 3-5, 2006.
Page 79 part of the equation is genetic: Kaufman, Diabesity, 225-229; Kelly D. Brownell and Katherine Battle Horgen, Food Fight: The Inside Story of the Food Industry, America’s Obesity Crisis, and What We Can Do About It (New York: McGraw-Hill, 2003), 23; G. S. Barsh et al., “Genetics of Body Weight Regulation,” Nature 404 (2000), 644-651; J. Eric Oliver, Fat Politics: The Real Story Behind America’s Obesity Epidemic (New York: Oxford University Press, 2006), 105.
Page 79 increased prevalence of air-conditioning: David B. Allison et al., “Putative Contributors to the Secular Increase in Obesity: Exploring the Roads Less Traveled,” International Journal of Obesity 30 (2006), 1585-1594.
Page 79 nearly half the increase in calories: Centers for Disease Control, “Trends in Intake of Energy and Macronutrients—United States, 1971-2000,” February 4, 2004.
Page 79 largest single source of calories: Mark Bittman, “Soda: A Sin We Sip Instead of Smoke?” New York Times, February 12, 2010.
Page 79 team analyzing some thirty studies: Frank B. Hu et al., “Intake of Sugar-Sweetened Beverages and Weight Gain: A Systematic Review,” American Journal of Clinical Nutrition 84 (2006), 274-288.
Page 79 followed five hundred eleven-year-olds: David S. Ludwig et al., “Relation Between Consumption of Sugar-Sweetened Drinks and Childhood Obesity: A Prospective, Observational Analysis,” The Lancet 357 (2001), 505-508.
Page 80 later study by Ludwig: David S. Ludwig et al., “Effects of Decreasing Sugar-Sweetened Beverage Consumption on Body Weight in Adolescents: A Randomized, Controlled Pilot Study,” Pediatrics 117, no. 3 (March 2006), 673-680; Melanie Warner, “Soda Sales Fall for the First Time in 20 Years,” New York Times, March 9, 2006.
Page 80 “It’s not the exceptional child”: David Ludwig, interview by the author.
Page 80 Another analysis, of thousands of nurses: Matthias B. Schulze et al., “Sugar-Sweetened Beverages, Weight Gain, and Incidence of Type 2 Diabetes in Young and Middle-Aged Women,” Journal of the American Medical Association 292, no. 8 (August 2004), 927-934.
Page 80 “might be the best single opportunity”: Caroline Apovian, “Sugar-Sweetened Soft Drinks, Obesity, and Type 2 Diabetes,” Journal of the American Medical Association 292, no. 8 (August 2004), 978-979.
Page 80 study by Purdue University nutritionist: R. D. Mattes and D. P. DiMeglio, “Liquid Versus Solid Carbohydrates: Effects on Food Intake and Body Weight,” International Journal of Obesity 24 (2000), 794-800; Brian Wansink, Mindless Eating: Why We Eat More Than We Think (New York: Bantam, 2006), 239.
Page 80 fructose isn’t broken down: George A. Bray, “Diobesity: A Global Problem,” International Journal of Obesity 26 (2002), S63.
Page 80 turning directly into fat: Brownell and Horgen, 30; Shell, 214; Critser, 137-140; John P. Bantle et al., “Effects of Dietary Fructose on Plasma Lipids in Healthy Subjects,” American Journal of Clinical Nutrition 72 (2000), 1128-1134.
Page 81 cells to become more resistant: Kaufman, Diabesity, 29; Sharron Dalton, Our Overweight Children: What Parents, Schools, and Communities Can Do to Control the Fatness Epidemic (Berkeley: University of California Press, 2004), 37.
Page 81 name was changed to simply “type-2 diabetes”: Kaufman, Diabesity, 14.
Page 81 one in three will become diabetic: “Lifetime Risk for Diabetes Mellitus in United States,” http://www.cdc.gov/diabetes/news/docs/lifetime.htm; K. M. Venkat Narayan et al., “Lifetime Risk for Diabetes Mellitus in the United States,” Journal of the American Medical Association 290, no. 14 (October 2003), 1884-1890.
Page 81 continually warning Americans: Michael Pollan, In Defense of Food: An Eater’s Manifesto (New York: The Penguin Press, 2008), 50.
Page 81 Coke wasn’t the only company: Meet the Bloggers, featuring Marion Nestle, November 21, 2008, http://meetthebloggers.org/show_112108.php; Marion Nestle, interview by the author.
Page 81 from 3,200 to 3,900 per capita: USDA Economic Research Service, Nutrient Availability Data, February 27, 2009; Marion Nestle, e-mail to the author.
Page 81 “Whe
n you come in” . . . “At the time . . . your kid is ugly”: Hank Cardello, interview by the author.
Page 82 to sweeten their diet beverages: “Searle Sweetener Expands Its Market,” New York Times, September 20, 1983.
Page 82 100 percent aspartame formula: “Coke Sweetener,” New York Times, November 30, 1984; Pamela G. Hollie, “Pepsi’s Diet Soft Drinks Switched to NutraSweet,” New York Times, November 2, 1984.
Page 82 Complaints about the chemical more than doubled: Centers for Disease Control, “Evaluation of Consumer Complaints Related to Aspartame Use,” Morbidity and Mortality Weekly Report 33, no. 43 (November 2, 1984), 605-607.
Page 82 “unless the CBS story snowballed”: Cardello, 133.
Page 82 concerns about aspartame of minor importance: Centers for Disease Control, “Evaluation of Consumer Complaints Related to Aspartame Use.”
Page 82 more than seven thousand complaints: “Clearing Up the Newest Rumors About Aspartame Sweetener,” Wall Street Journal, June 7, 1999.
Page 82 comprehensive, if controversial, study: Morando Soffritti et al., “First Experimental Demonstration of the Multipotential Carcinogenic Effects of Aspartame Administered in the Feed to Sprague-Dawley Rats,” Environmental Health Perspective 114, no. 3 (March 2006), 384-385.
Page 82 FDA dismissed the study: Food and Drug Administration, “FDA Statement on European Aspartame Study,” May 8, 2006.
Page 82 sending representatives to lobby: “Banning Aspartame in New Mexico,” Carlsbad Current-Argus, January 31, 2007.
Page 83 discovered excessive levels of benzene: Larry Alibrandi, former chemist at Cadbury-Schweppes, interview by the author.
Page 83 reaction of . . . sodium benzoate with ascorbic acid: Lalita K. Gardner and Glen D. Lawrence, “Benzene Production from Decarboxylation of Benzoic Acid in the Presence of Ascorbic Acid and a Transition-Metal Catalyst,” Journal of Agricultural and Food Chemistry 41, no. 5 (May 1993), 693-695.
Page 83 more than 25 parts per billion: “Project Denver” documents provided by Larry Alibrandi.
Page 83 legal limit of 5 ppb: Environmental Protection Agency, “Basic Information About Benzene in Drinking Water,” http://www.epa.gov/ogwdw000/contaminants/basicinformation/benzene.html.