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These are the user uploaded subtitles that are being translated: 1 00:00:00,380 --> 00:00:07,048 the soft drink industry is a 100 billion 2 00:00:04,110 --> 00:00:09,388 dollar international juggernaut the 3 00:00:07,049 --> 00:00:11,490 coca-cola company and PepsiCo controlled 4 00:00:09,388 --> 00:00:15,199 vast empires which reach into 5 00:00:11,490 --> 00:00:15,199 practically every corner of the globe 6 00:00:15,500 --> 00:00:20,160 through huge networks of bottlers 7 00:00:17,778 --> 00:00:22,230 distributors and retailers there's 8 00:00:20,160 --> 00:00:24,000 hardly a spot on earth where you can't 9 00:00:22,230 --> 00:00:28,618 quench your thirst with a Coke or a 10 00:00:24,000 --> 00:00:31,379 Pepsi so heavily promoted their presence 11 00:00:28,618 --> 00:00:33,920 is practically inescapable coke and 12 00:00:31,379 --> 00:00:37,350 pepsi are twin icons of American culture 13 00:00:33,920 --> 00:00:40,109 such everyday familiar symbols that a 14 00:00:37,350 --> 00:00:48,870 time before their existence is almost 15 00:00:40,109 --> 00:00:53,519 unfathomable it was 1886 the height of 16 00:00:48,869 --> 00:00:56,250 the Gilded Age the civil war was over 17 00:00:53,520 --> 00:00:57,739 and America was hurtling headlong into 18 00:00:56,250 --> 00:01:00,988 the modern age 19 00:00:57,738 --> 00:01:03,718 electric lights hummed victrolas cranked 20 00:01:00,988 --> 00:01:06,140 up vaudeville tunes horseless carriages 21 00:01:03,719 --> 00:01:09,650 sputtered to life and the first 22 00:01:06,140 --> 00:01:12,390 skyscrapers thrust toward the sky 23 00:01:09,650 --> 00:01:14,340 against this backdrop this whirling 24 00:01:12,390 --> 00:01:16,170 kaleidoscope where everything was fresh 25 00:01:14,340 --> 00:01:18,990 new and bubbling over with fervent 26 00:01:16,170 --> 00:01:21,629 energy the world's most famous trademark 27 00:01:18,989 --> 00:01:25,419 was born launched with a tiny 28 00:01:21,629 --> 00:01:28,219 advertisement in Atlanta newspaper 29 00:01:25,420 --> 00:01:31,219 coca-cola was created by an Atlanta 30 00:01:28,219 --> 00:01:34,280 pharmacy owner named John doc Pemberton 31 00:01:31,219 --> 00:01:36,500 the Pemberton was no doctor he just 32 00:01:34,280 --> 00:01:40,790 purchased a $5 medical license and 33 00:01:36,500 --> 00:01:42,978 started calling himself doc a visit to 34 00:01:40,790 --> 00:01:44,990 dr. Merton usually included a vapor bath 35 00:01:42,978 --> 00:01:47,750 and a forcible cleansing of the 36 00:01:44,989 --> 00:01:51,530 digestive system he believed you could 37 00:01:47,750 --> 00:01:55,040 cure all human ills by in fact drinking 38 00:01:51,530 --> 00:01:58,159 poisons and and purging your body the 39 00:01:55,040 --> 00:02:00,740 1880s with a heyday of miracle cures and 40 00:01:58,159 --> 00:02:02,478 patent medicines store shelves were 41 00:02:00,739 --> 00:02:04,129 crammed with a bewildering array of 42 00:02:02,478 --> 00:02:07,280 elixirs and tonics of dubious 43 00:02:04,129 --> 00:02:09,728 reliability Pemberton's own concoctions 44 00:02:07,280 --> 00:02:13,640 included triplets liver pills and 45 00:02:09,729 --> 00:02:16,459 compound extracted still NGO dr. 46 00:02:13,639 --> 00:02:20,089 Sanford's great invigorate ER and Eureka 47 00:02:16,459 --> 00:02:22,550 oil federal regulation of food and drugs 48 00:02:20,090 --> 00:02:24,890 was years away and for the patent 49 00:02:22,550 --> 00:02:29,000 medicine business the sky was the limit 50 00:02:24,889 --> 00:02:31,219 you could concoct any sort of Mao potion 51 00:02:29,000 --> 00:02:35,419 and claim all sorts of miraculous cures 52 00:02:31,219 --> 00:02:37,340 for it and in fellin most patent 53 00:02:35,419 --> 00:02:39,889 medicines contained copious amounts of 54 00:02:37,340 --> 00:02:44,060 alcohol or even stronger drugs often 55 00:02:39,889 --> 00:02:47,298 both laudanum a popular painkiller was a 56 00:02:44,060 --> 00:02:49,549 mixture of opium and alcohol others 57 00:02:47,299 --> 00:02:54,879 contain powerful doses of what was in 58 00:02:49,549 --> 00:02:57,439 1886 the latest wonder drug cocaine 59 00:02:54,879 --> 00:03:00,829 cocaine had been relatively unknown in 60 00:02:57,439 --> 00:03:03,709 America until 1884 when former president 61 00:03:00,830 --> 00:03:05,690 and civil war hero ulysses s grant was 62 00:03:03,709 --> 00:03:08,449 stricken with throat cancer and was 63 00:03:05,689 --> 00:03:11,569 prescribed cocaine by his doctor grams 64 00:03:08,449 --> 00:03:13,609 dying and gained relief from his 65 00:03:11,569 --> 00:03:15,979 suffering by the use of cocaine which 66 00:03:13,610 --> 00:03:17,930 was in turn publicized and he was 67 00:03:15,979 --> 00:03:20,959 probably the most famous and popular 68 00:03:17,930 --> 00:03:23,090 figure in the country at that point so a 69 00:03:20,959 --> 00:03:26,870 lot of people had reason to think that 70 00:03:23,090 --> 00:03:30,560 cocaine was it was a good thing and doc 71 00:03:26,870 --> 00:03:32,480 Pemberton was one of those people among 72 00:03:30,560 --> 00:03:37,300 his early product was a concoction 73 00:03:32,479 --> 00:03:41,000 called French wine coca Pemberton used 74 00:03:37,300 --> 00:03:43,849 cocaine and caffeine and and Sarah's 75 00:03:41,000 --> 00:03:45,770 early creations his most successful one 76 00:03:43,848 --> 00:03:47,988 before he turned to coca-cola was a 77 00:03:45,770 --> 00:03:50,530 combination of wine which of course is 78 00:03:47,989 --> 00:03:53,680 alcohol cocaine and caffeine in it 79 00:03:50,530 --> 00:03:57,620 French wine coca was an immediate hit 80 00:03:53,680 --> 00:03:59,599 but its success was short-lived months 81 00:03:57,620 --> 00:04:01,819 after the potent mixture hit drug store 82 00:03:59,598 --> 00:04:04,669 shelves French wine Coca's main 83 00:04:01,818 --> 00:04:10,369 ingredient was outlawed it wasn't the 84 00:04:04,669 --> 00:04:11,479 cocaine it was the wine in 1885 Atlanta 85 00:04:10,370 --> 00:04:13,640 voted to go dry 86 00:04:11,479 --> 00:04:16,189 Pemberton panicked because his French 87 00:04:13,639 --> 00:04:18,589 wine coca just come out in 1885 it was 88 00:04:16,189 --> 00:04:21,490 doing real well and he thought what am I 89 00:04:18,589 --> 00:04:24,469 going to do if they make this illegal 90 00:04:21,490 --> 00:04:26,389 what he did was get out of the patent 91 00:04:24,470 --> 00:04:30,110 medicine business and into the soft 92 00:04:26,389 --> 00:04:32,089 drink business there were five immensely 93 00:04:30,110 --> 00:04:33,979 popular soda fountains in Atlanta that 94 00:04:32,089 --> 00:04:37,310 offered cool refreshment from the city's 95 00:04:33,978 --> 00:04:38,689 blistering summer heat Pemberton wanted 96 00:04:37,310 --> 00:04:39,829 a beverage that would sell at these 97 00:04:38,689 --> 00:04:44,300 popular fountains 98 00:04:39,829 --> 00:04:47,538 these huge soda fountains that that were 99 00:04:44,300 --> 00:04:49,939 like palaces of Onyx and marble with 100 00:04:47,538 --> 00:04:53,000 gorgeous accoutrements and they would 101 00:04:49,939 --> 00:04:55,370 they would create 300 different soft 102 00:04:53,000 --> 00:04:59,180 drinks at one soda fountain and so there 103 00:04:55,370 --> 00:05:01,189 was this immense competition with soft 104 00:04:59,180 --> 00:05:03,220 drinks like hires root beer and white 105 00:05:01,189 --> 00:05:05,598 rock ginger ale already successful 106 00:05:03,220 --> 00:05:08,479 Pemberton's challenge was to transform 107 00:05:05,598 --> 00:05:10,099 his wine and cocaine mixture into a soft 108 00:05:08,478 --> 00:05:12,409 drink 109 00:05:10,100 --> 00:05:13,129 what he came up with was anything but 110 00:05:12,410 --> 00:05:15,320 soft 111 00:05:13,129 --> 00:05:19,699 thanks to Eddy doses of cocaine and 112 00:05:15,319 --> 00:05:22,699 another stimulant extract of Cola coma 113 00:05:19,699 --> 00:05:25,610 spelled with a cave was a nut native to 114 00:05:22,699 --> 00:05:29,539 West Africa it's active ingredient was 115 00:05:25,610 --> 00:05:31,730 nothing more than caffeine Pemberton 116 00:05:29,540 --> 00:05:34,100 merely combined two popular stimulants 117 00:05:31,730 --> 00:05:36,350 in a single cold beverage that since it 118 00:05:34,100 --> 00:05:40,310 contained no alcohol could be sold at 119 00:05:36,350 --> 00:05:43,580 soda fountains Pemberton tinkered with 120 00:05:40,310 --> 00:05:47,959 the French wine coca formula to try to 121 00:05:43,579 --> 00:05:50,409 take out the alcohol and he added a 122 00:05:47,959 --> 00:05:53,529 bunch of sugar he added some acid and 123 00:05:50,410 --> 00:05:56,150 basically he came up with coca cola and 124 00:05:53,529 --> 00:05:59,449 it was Pemberton's bookkeeper Frank 125 00:05:56,149 --> 00:06:03,560 Robinson who came up with the name Frank 126 00:05:59,449 --> 00:06:06,829 Robinson had the inspiration to think of 127 00:06:03,560 --> 00:06:08,689 the name Coca Cola as he liked the way 128 00:06:06,829 --> 00:06:13,120 it sounded and he changed the spelling 129 00:06:08,689 --> 00:06:16,100 of Cola from beginning with a K to a C 130 00:06:13,120 --> 00:06:18,709 besides a memorable name Robinson also 131 00:06:16,100 --> 00:06:21,740 supplied the trademark spending months 132 00:06:18,709 --> 00:06:24,250 perfecting the flowing script he had a 133 00:06:21,740 --> 00:06:26,629 bookkeepers ability to write beautiful 134 00:06:24,250 --> 00:06:28,550 Spencerian script and that's actually 135 00:06:26,629 --> 00:06:30,800 his handwriting that became the 136 00:06:28,550 --> 00:06:33,920 trademark that's familiar all around the 137 00:06:30,800 --> 00:06:35,810 world today but what would become the 138 00:06:33,920 --> 00:06:39,350 world's most recognized brand name 139 00:06:35,810 --> 00:06:41,149 almost failed in its first year he was a 140 00:06:39,350 --> 00:06:43,700 rotten business man and he'd gone 141 00:06:41,149 --> 00:06:46,099 bankrupt several times and you did not 142 00:06:43,699 --> 00:06:50,569 want to be a business partner of dr. 143 00:06:46,100 --> 00:06:52,760 Burton sales were slow only 25 gallons 144 00:06:50,569 --> 00:06:55,250 of syrup sold the first year 145 00:06:52,759 --> 00:06:57,680 to make matters worse Pemberton's health 146 00:06:55,250 --> 00:06:59,689 was failing he was suffering from a 147 00:06:57,680 --> 00:07:02,569 problem that afflicted many druggists of 148 00:06:59,689 --> 00:07:07,250 the day it was by this time addicted to 149 00:07:02,569 --> 00:07:09,649 cocaine so this I would say contributed 150 00:07:07,250 --> 00:07:13,759 to his lack of business acumen a just 151 00:07:09,649 --> 00:07:17,810 spaced out mr. time in the winter of 152 00:07:13,759 --> 00:07:21,079 1888 Pemberton Lay Dying it looked as if 153 00:07:17,810 --> 00:07:23,360 coca-cola might die with him but that 154 00:07:21,079 --> 00:07:28,759 winter something would happen that would 155 00:07:23,360 --> 00:07:31,100 ensure cokes future when we return a 156 00:07:28,759 --> 00:07:34,509 splitting headache transforms the 157 00:07:31,100 --> 00:07:36,820 failing soft drink into a household word 158 00:07:34,509 --> 00:07:39,680 [Music] 159 00:07:36,819 --> 00:07:41,659 the coca plant had been chewed by 160 00:07:39,680 --> 00:07:44,300 natives of Peru and Bolivia for over 161 00:07:41,660 --> 00:07:47,000 2,000 years and was reputed to act as a 162 00:07:44,300 --> 00:07:50,000 stimulant aid to digestion aphrodisiac 163 00:07:47,000 --> 00:07:51,639 and life extender the cola wars will 164 00:07:50,000 --> 00:07:59,769 return on modern marvels 165 00:07:51,639 --> 00:08:02,149 [Music] 166 00:07:59,769 --> 00:08:04,549 Atlanta Georgia is one of the busiest 167 00:08:02,149 --> 00:08:08,119 fastest-growing cities in the sutler 168 00:08:04,550 --> 00:08:10,579 and the same is true back in the 1880s 169 00:08:08,119 --> 00:08:12,519 but it was a place where men of ambition 170 00:08:10,579 --> 00:08:15,348 aim to strike it rich 171 00:08:12,519 --> 00:08:17,689 among these eager men was a high-strung 172 00:08:15,348 --> 00:08:20,178 but determined 21 year old druggist 173 00:08:17,689 --> 00:08:23,419 apprentice from Villa Rica Georgia named 174 00:08:20,178 --> 00:08:24,859 ASA Kendler he came to Atlanta with a 175 00:08:23,418 --> 00:08:27,168 dollar and seventy five cents in his 176 00:08:24,860 --> 00:08:29,869 pocket like a real life a ratio Alger 177 00:08:27,168 --> 00:08:31,519 and I went around all the drugstores 178 00:08:29,869 --> 00:08:33,949 looking for a job one of which father 179 00:08:31,519 --> 00:08:37,578 while he was Pemberton's and who didn't 180 00:08:33,948 --> 00:08:39,788 harm turned down by Pemberton Candler 181 00:08:37,578 --> 00:08:42,708 landed a job at another pharmacist shop 182 00:08:39,788 --> 00:08:45,470 within four years he was in business for 183 00:08:42,708 --> 00:08:47,659 himself he was not the creative genius 184 00:08:45,470 --> 00:08:49,939 that Pemberton was and he was not the 185 00:08:47,659 --> 00:08:52,639 scholar that temperance n' was but he 186 00:08:49,938 --> 00:08:54,889 was a hustler he made a lot you know he 187 00:08:52,639 --> 00:08:57,860 wanted to make money and he knew how to 188 00:08:54,889 --> 00:08:58,129 do it Chandler's long hours of work paid 189 00:08:57,860 --> 00:09:01,028 off 190 00:08:58,129 --> 00:09:03,919 but his success came at a price 191 00:09:01,028 --> 00:09:06,370 excruciating headaches he was plainly a 192 00:09:03,919 --> 00:09:08,568 very tightly wound man who suffered from 193 00:09:06,370 --> 00:09:12,259 headaches from time to time brought on 194 00:09:08,568 --> 00:09:14,349 by by stress yet Cantler stress was 195 00:09:12,259 --> 00:09:17,720 nothing compared to Pemberton's troubles 196 00:09:14,350 --> 00:09:19,970 flat broken near-death coca-cola's 197 00:09:17,720 --> 00:09:21,980 creator offered to sell the business to 198 00:09:19,970 --> 00:09:25,550 the young druggist he once refused to 199 00:09:21,980 --> 00:09:27,680 hire at first he wasn't interested but 200 00:09:25,549 --> 00:09:30,349 then Candler racked by one of his 201 00:09:27,679 --> 00:09:33,609 recurring migraines sampled his first 202 00:09:30,350 --> 00:09:36,589 cook he'd tried quite a few different 203 00:09:33,610 --> 00:09:38,500 hit acremant is nothing at work but Ron 204 00:09:36,589 --> 00:09:41,660 coca-cola and it seemed to work 205 00:09:38,500 --> 00:09:45,438 his headache cured canler's mind was 206 00:09:41,659 --> 00:09:50,639 made up for $2,300 Candler became the 207 00:09:45,438 --> 00:09:53,469 sole proprietor of coca-cola in May 1889 208 00:09:50,639 --> 00:09:55,569 counselors first move was to refine the 209 00:09:53,470 --> 00:09:58,660 formula and rid coca-cola of its 210 00:09:55,570 --> 00:10:02,920 medicinal flavor he had a more sugar for 211 00:09:58,659 --> 00:10:04,779 example he added some citric products to 212 00:10:02,919 --> 00:10:07,629 mask the taste and to give a little bit 213 00:10:04,779 --> 00:10:09,610 more by night a little bit less sweet 214 00:10:07,629 --> 00:10:14,649 because of all the sugar that had to be 215 00:10:09,610 --> 00:10:16,600 added beyond cokes taste the dour deeply 216 00:10:14,649 --> 00:10:17,949 religious cancer also had serious 217 00:10:16,600 --> 00:10:19,029 reservations about the trademark 218 00:10:17,950 --> 00:10:22,390 ingredient 219 00:10:19,029 --> 00:10:25,299 he sent a sample of coke syrup off to a 220 00:10:22,389 --> 00:10:27,000 chemist to find out how much cocaine was 221 00:10:25,299 --> 00:10:31,569 actually in it and the report came back 222 00:10:27,000 --> 00:10:34,509 that it was substantial enough to be 223 00:10:31,570 --> 00:10:36,970 worrisome Candler devised a new means of 224 00:10:34,509 --> 00:10:38,439 exhausting these coca leaves so that 225 00:10:36,970 --> 00:10:41,950 there was no more than an infant 226 00:10:38,440 --> 00:10:44,890 estimate of cocaine as great from that 227 00:10:41,950 --> 00:10:46,570 day forward coca-cola would contain only 228 00:10:44,889 --> 00:10:51,069 trace amounts of its trademark 229 00:10:46,570 --> 00:10:53,650 ingredients in a way Coca Cola's names 230 00:10:51,070 --> 00:10:57,010 is very misleading because there's 231 00:10:53,649 --> 00:11:01,509 virtually no coca and virtually no Cola 232 00:10:57,009 --> 00:11:03,700 in it coca cola's potent combination of 233 00:11:01,509 --> 00:11:08,319 sugar and caffeine still packed a punch 234 00:11:03,700 --> 00:11:10,360 only now it tasted good to Frank 235 00:11:08,320 --> 00:11:12,940 Robinson Pemberton's former bookkeeper 236 00:11:10,360 --> 00:11:15,519 and now canler's chief of advertising 237 00:11:12,940 --> 00:11:18,250 once again provided the inspiration to 238 00:11:15,519 --> 00:11:21,220 take the product to the next level he 239 00:11:18,250 --> 00:11:23,559 launched a pioneering ad campaign among 240 00:11:21,220 --> 00:11:26,460 the first direct mail campaigns in 241 00:11:23,559 --> 00:11:28,779 history they would go to the biggest 242 00:11:26,460 --> 00:11:31,120 pharmacists in the town who had a soda 243 00:11:28,779 --> 00:11:32,949 fountain and they would ask him who his 244 00:11:31,120 --> 00:11:35,409 best customers were and they'd get their 245 00:11:32,950 --> 00:11:38,950 addresses and they would mail them free 246 00:11:35,409 --> 00:11:40,679 coupons for coca-cola driven by 247 00:11:38,950 --> 00:11:43,450 Robinson's aggressive advertising 248 00:11:40,679 --> 00:11:46,329 coca-cola expanded to soda fountains 249 00:11:43,450 --> 00:11:48,720 across the country sales jumped to half 250 00:11:46,330 --> 00:11:53,220 a million gallons of syrup by 1901 251 00:11:48,720 --> 00:11:53,220 roughly 60 million cokes 252 00:11:54,830 --> 00:12:00,600 America seemed addicted to coca-cola 253 00:11:57,570 --> 00:12:02,970 the only problem was that some people 254 00:12:00,600 --> 00:12:06,090 began to wonder why there were a lot of 255 00:12:02,970 --> 00:12:08,730 stories begin appearing in in various 256 00:12:06,090 --> 00:12:12,420 national publications about people who 257 00:12:08,730 --> 00:12:14,759 were afflicted with addictions to 258 00:12:12,419 --> 00:12:18,089 coca-cola and other soft drinks that 259 00:12:14,759 --> 00:12:23,179 contain could contain cocaine and there 260 00:12:18,090 --> 00:12:26,100 was an outcry building against it in 261 00:12:23,179 --> 00:12:28,439 1906 with public pressure mounting 262 00:12:26,100 --> 00:12:30,899 cancer went back to the laboratory and 263 00:12:28,440 --> 00:12:33,450 developed a complicated process that rid 264 00:12:30,899 --> 00:12:36,269 the drink of any trace of the drug once 265 00:12:33,450 --> 00:12:40,460 and for all this beverage this magic 266 00:12:36,269 --> 00:12:45,149 concoction Coca Cola a simple a simple 267 00:12:40,460 --> 00:12:49,769 refreshment advertised now only as a 268 00:12:45,149 --> 00:12:55,019 refreshment having no no magic qualities 269 00:12:49,769 --> 00:12:59,569 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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