Coca Cola Case

I. INTRODUCTION AND CASE SUMMARY

1. About Coca-Cola

The Coca-Cola Company is an American multinational beverage corporation and manufacturer, retailer and marketer of non-alcoholic beverage concentrates and syrups. The company is best known for its flagship product Coca-Cola, invented in 1886 by pharmacist John Stith Pemberton in Columbus, Georgia. The Coca-Cola formula and brand was bought in 1889 by Asa Candler who incorporated The Coca-Cola Company in 1892. Besides its namesake Coca-Cola beverage, Coca-Cola currently offers more than 500 brands in over 200 countries or territories and serves over 1.7 billion servings each day.

The company operates a franchised distribution system dating from 1889 where The Coca-Cola Company only produces syrup concentrate which is then sold to various bottlers throughout the world who hold an exclusive territory. The Coca-Cola Company owns its anchor bottler in North America, Coca-Cola Refreshments.

The company is headquartered in Atlanta, Georgia, United States. Its stock is listed on the NYSE and is part of DJIA, S&P 500 Index, the Russell 1000 Index and the Russell 1000 Growth Stock Index. Its current chairman and chief executive is Muhtar Kent.

2. About India

From 1991, with the economic reforms came into force, India has become an attractive market. The foreign investment on India is high and stable. India’s economy has grown up fast. However, it still needs more investment in manufacturing to increase the people’s living standard.

3. Case summary

Coca-Cola India faced the charge of using contaminated water to produce its products. The Indian government as well as some scientist groups had shown the evidence proving that Coca-Cola contained unsafe levels of pesticides. Meanwhile, Coca-Cola strongly claimed the contrary fact. In order to relieve the public and protect its brand name, Coca-Cola India has actively involved in the Social Responsibility Commitments. However, it is said that Coca-Cola India...