The History of the Coca-Cola Company

The Coca-Cola Company, one of the most iconic brands in the world, traces its origins to a modest pharmacy in Atlanta, Georgia. Invented in 1886 by pharmacist John Stith Pemberton, Coca-Cola began as a medicinal syrup intended to cure ailments like headaches and morphine addiction. Pemberton, a Civil War veteran, formulated the drink using coca leaves (containing cocaine) and kola nuts (a source of caffeine), promoting it as a "healthy tonic." The first serving occurred on May 8, 1886, at Jacobs' Pharmacy, where it was mixed with carbonated water and sold for five cents a glass. In its inaugural year, sales averaged just nine drinks per day. Pemberton's bookkeeper, Frank Mason Robinson, coined the name "Coca-Cola" and designed its distinctive Spencerian script logo, which remains in use today.

Initially, the product contained cocaine, but by 1903, it was removed due to growing public concerns about the drug. Pemberton sold portions of the business before his death in 1888, and by 1891, Atlanta businessman Asa Griggs Candler acquired full ownership for about $2,300. Candler incorporated The Coca-Cola Company in 1892 as a Georgia corporation, capitalizing it at $100,000. He focused aggressively on marketing, using coupons, merchandise, and newspaper ads to build demand. By 1895, Coca-Cola was available in every U.S. state and territory, with syrup sales soaring from 9,000 gallons in 1890 to over 370,000 gallons by 1900. The trademark "Coca-Cola" was registered in 1893, and the company established syrup plants in cities like Dallas, Los Angeles, and Philadelphia.

A pivotal milestone came in 1899 when Candler sold bottling rights to Benjamin F. Thomas and Joseph B. Whitehead for just $1, establishing a franchised bottling system that allowed independent bottlers to produce and distribute the product locally. This model became the backbone of Coca-Cola's distribution, enabling rapid expansion without massive capital investment from the company. Chattanooga, Tennessee, became the first bottling site outside Atlanta. International growth followed swiftly: bottling began in Canada, Cuba, and Panama in 1906, and in the Philippines in 1912, marking entry into Asia.

The early 20th century saw innovative branding efforts. In 1915, the iconic contour bottle was designed by the Root Glass Company to combat copycats, patented in 1916, and became a registered trademark in 1960. This distinctive shape helped consumers identify the "real thing" even in the dark. Advertising budgets ballooned; by 1911, they exceeded $1 million annually. In 1919, after Candler's retirement to become Atlanta's mayor, the company was sold for $25 million to a group led by banker Ernest Woodruff. It went public that year on the New York Stock Exchange under the ticker "KO," and has paid increasing dividends since 1920.

Ernest's son, Robert Winship Woodruff, became president in 1923 and led the company for over six decades, transforming it into a global powerhouse. Under Woodruff, Coca-Cola sponsored the 1928 Amsterdam Olympics, its first association with the Games, and introduced the six-bottle carton in 1923 for easier home consumption. The 1930s brought cultural integrations, like Haddon Sundblom's Santa Claus illustrations in 1931, forever linking Coke to Christmas. Lettie Pate Evans became the first woman on the board in 1935.

World War II marked a heroic chapter. In 1943, Woodruff pledged to supply Coca-Cola to U.S. troops for five cents a bottle, wherever they were. The company set up 64 portable bottling plants overseas, distributing over 5 billion bottles and boosting morale. Post-war, "Coke" was registered as a trademark in 1945. The 1950s saw diversification: African-Americans featured in ads starting in 1951, and the company appeared on Time magazine's cover in 1950. Fanta, originally created in Nazi Germany during syrup shortages, was acquired in 1946 and launched in the U.S. in 1960. Steel cans debuted in 1960, and the Minute Maid acquisition that year entered the juice market.

The 1960s and 1970s emphasized product innovation. Sprite launched in 1961, Tab (the first diet drink) in 1963, and Fresca in 1966. A new graphic look arrived in 1969, and the iconic "I'd Like to Buy the World a Coke" ad aired in 1971. Sponsorships expanded to the FIFA World Cup in 1978 and Special Olympics in 1979. The 2-liter PET bottle was introduced in 1978.

The 1980s brought both triumphs and setbacks. Diet Coke debuted in 1982, becoming a massive success. However, the 1985 reformulation to "New Coke" sparked massive backlash, with consumers protesting nationwide. After 79 days, the original formula returned as "Coca-Cola Classic." The company briefly owned Columbia Pictures from 1982 to 1989, selling it to Sony for $3 billion. The 100th anniversary was celebrated in 1986, and Coca-Cola Enterprises formed as a major bottler.

In the 1990s and 2000s, globalization accelerated. Sales began in East Germany in 1990 and India in 1993. Acquisitions included Barq's root beer in 1995, Inca Kola in 1999, and brands like Powerade, Dasani, and Thums Up. The World of Coca-Cola museum opened in 1990. Controversies emerged, including a 2000 racial discrimination lawsuit settled for $192.5 million and allegations of human rights violations in Latin America. Water depletion issues in India led to plant closures, like in Plachimada in 2004. In 2001, Coca-Cola joined the fight against AIDS in Africa and contributed to 9/11 relief. Coca-Cola Zero launched in 2005, and the Freestyle machine in 2009.

The 2010s focused on diversification and sustainability. Acquisitions included Glacéau (Vitaminwater) in 2007 for $4.1 billion, Honest Tea in 2011, ZICO in 2013, and Costa Coffee in 2019 for £3.9 billion, entering the coffee and alcoholic beverage markets. A stake in Monster Beverage was acquired in 2014. In 2020, amid COVID-19, the company cut over half its brands, discontinuing Tab. Sustainability efforts include aiming for 100% recyclable packaging by 2025 and circular water use by 2030.

Today, under CEO James Quincey since 2017, Coca-Cola operates in over 200 countries, offering 500+ brands and serving 1.3 billion drinks daily. With 2024 revenue of $47 billion, it remains a cultural icon, sponsoring events like the Olympics and FIFA World Cup. Despite environmental criticisms, such as plastic pollution, Coca-Cola's history reflects innovation, resilience, and global influence, evolving from a pharmacy tonic to a symbol of American enterprise.

Craig Payne is a University lecturer, runner, cynic, researcher, skeptic, forum admin, woo basher, clinician, rabble-rouser, blogger and a dad.