With the release of the iPad and the growing popularity of the Kindle, Nook and other e-reading devices, a few outlets such as The New York Times and Meanjin are contemplating the fate of the book cover. Not only do they act as the outward display of our undeniably exquisite reading tastes (or something to be bent back to hide what we’re reading from prying eyes, should our tastes lapse ever so slightly), but they can draw us toward a book that we wouldn’t otherwise pick up. Such is the case with Constance L. Hays’ Pop: Truth and Power at the Coca-Cola Company. Some savvy librarian had placed the book on a display shelf at the end of the 300s, and myself, unable to resist a pup looking sadly hopeful at a rosy cheeked woman and her old-fashioned bottle of Coke held daintily in gloved hands, took it home.
One Wall Street analyst liked to describe Coke and Pepsi in terms of two diametrically opposed college students: Coke was the studious one, the one who was always in the library and aced his exams. Pepsi, meanwhile, was the fraternity brother who lived to socialize, studying just enough to get by and occasionally surprising himself by doing very well – often enough to make him believe that his approach worked just fine. In product development, in marketing, and in overall strategy, throughout all the years of their competitive relationship, Coke had been the diligent one and Pepsi’s record had been hit-or-miss. By 1997, when Goizueta died, analysts all believed fervently in Coke, that Coke could do no wrong, while Pepsi was regarded as a joke.
I expected, or wanted perhaps, an overview of the cultural and historical impact of Coca-Cola. Pop does cover some of this ground, but for the most part it is an insight into the fraught business of Coca-Cola, from the turbulent relationship between the company and the bottlers, to internal politics, to stock options and stock prices and aggressive marketing campaigns. I’m not exactly what one could call business-minded, but Hays tells the story of the intense business of selling Coca-Cola in a way that makes it accessible to readers. The numerous chief executive officers and their tribulations are told as great overarching narratives that represent the changing world in which Coke existed. Sometimes, it is hard to believe the stories. At one point, Roberto Guizueta the CEO of Coca-Cola from 1980 to 1997, and the man who tried to introduce the world to the infamous New Coke, owned one billion dollars worth of shares. At that stage, the gross national product of his home country of Cuba was ten billion dollars. This is what I don’t really understand about business, how much money is enough? What kind of life would you be living if no amount of money is ever enough? Okay, one of gold-plated cars and money vaults like Scrooge McDuck. The strategic moves made in order to make profit and keep the shareholders are astronomical, such as the dramatic dismissal of Doug Ivester after creating billions of dollars in value to the company and only two years in the top job. And yet, employees were disappointed that Ivester’s business strategy had become solely about “the bottom line.” Although with the severance payouts, I don’t see cause to complain too much, we’re talking double figure millions here.
Thankfully, Pop isn’t all about the business side of Coca-Cola, and interesting tidbits are supplied in abundance by Hays extensive research. Such as the use of Coca-Cola in World War 2, in which it was used as a patriotic symbol through which homesick American soldiers were reminded of home. Between 1941 and 1945, ten billion bottles of Coke were sold to troops; a clever ruse through which to create patriotism and marketing value home and abroad. Prohibitionists displayed concern over the caffeine levels of Coca-Cola from the introduction of the beverage, but little attention is given to the concerns over sugar content that seems to have exploded over the past few years. (A recent article compares excessive soda consumption to tobacco usage.) The New Coke fiasco, basically an attempt by Coca-Cola to undo the damage of the Pepsi Challenge, altered the recipe for Coke and caused widespread outrage among consumers, who rallied and lobbied for the return of the old recipe. Eventually New Coke was scrapped altogether, but the experiment exemplified the cultural significance of Coke, as well as the nostalgia consumers attach to the product; through and after the ordeal, sales of the old recipe soared and stock prices were raised – causing no real or lasting financial damage to the company, though it would be used as an example of what not to do in business.
Pop: Truth and Power at the Coca-Cola Company is packed a wealth of information about the business of Coca-Cola, from those mentioned above to product recalls, lawsuits charging the company with racial discrimination and the ruthless introduction of the company into foreign markets. Though focused primarily on the business aspect of the company, Pop provides insight into what has made the Coca-Cola Company a dominant strength, not only within the beverage industry, but in the global economy.
