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Table of contents
Do I want a coffee? Or is it happy hour? As bottled water has caught on, it has taken over in more and more places that tap water used to be available— and even replaced tap water entirely in many homes and offices. Just as 1 30 THE COKE MACHINE pouring-rights contracts led to a proliferation of soft drinks in the s, now water fountains have disappeared at schools, airports, and municipal buildings, which all have contracts with bottled water producers instead.
Some sixty people ended up suffering from heat exhaustion as a result of dehydration; eighteen were sent to the hospital. Sick of being criticized about the water quality of their cities, mayors began canceling city contracts with bottled water companies and even began reinstalling water fountains in their city halls. Conference of Mayors in June that would commit all member cities to phase out bottled water at municipal buildings and events. More surprisingly, the study actually occurred, and a year later, resulted in passage of the earlier, tougher call for a ban.
By then, more than sixty cities has already joined the backlash, with Los Angeles, Seattle, Boston, Austin, and Providence all either canceling bottled water contracts or instructing city departments not to buy bottled water.
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Within just a few years, bottled water had gone from trendy to gauche. Within just a few weeks, it signed on several thousand people, celebrities among them, including actor Martin Sheen. Alone among the Big Three bottled water producers, Coke held out. Dasani fared even worse, with sales dropping 4 percent, despite slashing its prices by 40 percent in the previous three years.
As the recession hit, CAI moved from city hall to the state house, encouraging governors to cut state bottled water contracts to save scarce state resources. By then, Coca-Cola had already planned its response, and true to form, it was more in the vein of changing its image than changing its reality. Over the last hundred-some years, Coke had gone from a health tonic to an all-American drink to a symbol of worldwide harmony.
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Now it would work to undergo its biggest branding change in decades to become an environmental steward. Wearing big black sunglasses and a black suit despite the eighty-degree heat, he looks like a Mormon Bible salesman, and has the enthusiasm to match.
Henry Ford had found that out in , when his Ford Motor Company was sued for using profits to give discounts to customers instead of dividends to shareholders. Surprisingly, the practice of CSR was further entrenched by the Reagan administration, which encouraged voluntary corporate giving as a way to fill the void left from cutbacks in social programs.
One survey found that, all things being equal, 84 percent of people would switch brands to a company that supported a good cause. The following year, of course, BP was responsible for one of the worst environmental disasters in U.
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After the incident, it was revealed, BP had lobbied against a simple safety measure that could have prevented the accident. Just as the criticism against bottled water was going mainstream, in late , Coke announced a new partnership between the Coca-Cola Company and Coca-Cola Enterprises to create Coca-Cola Recycling, with the stated goal of eventually recycling percent of its PET plastic bottles. By , the company boasted, the plant would have a capacity of million pounds per year, making it the most ambitious effort ever by a company to recover and recycle all of its own packaging materials.
The problem with PET, however, has never been one of demand, but of supply. Carpet and car part manufacturers have always competed to get their hands on PET for industrial uses. But to get the high-quality PET needed to make into bottles is much more difficult. Meanwhile, Coke has done relatively little to help the supply side of the equation.
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In addition to its branded recycling bins, it has supported education programs such as Keep America Beautiful, which gives grants to local communities to support curbside programs, and a new program called RecycleBank, which gives consumers coupons for local businesses depending on how much they recycle.
In the eleven states with bottle bills, recycling rates average 70 percent for bottles. The higher the refund rate, the higher the percentage—up to the 10 cent return in Michigan, where the recycling rate is 95 percent. Of course, nothing of the sort has happened in the states that do have bottle bills, where public support for them averages around 80 percent. Sometimes, too, the largesse from the company comes with an implicit threat.
Despite its efforts to save the bottled water market by emphasizing environmental sustainability, Coke found itself back where it had been only a few years ago—with a consumer backlash driving down sales. Even while Neville Isdell was rallying for a return to soft drinks in , he was making good on his promise that Coke would eventually carry health benefits. But consumers have literally drunk it up, with sales in recent years growing by double digits, comparable to bottled water sales a few years before or, for that matter, soft drinks two decades ago. In all of its advertising of vitamins and health additives, however, Coke failed to advertise one ingredient in VitaminWater: a whole lot of sugar.
In fact, a ounce bottle of VitaminWater has The FDA allows food companies a lot of leeway in making claims about the nutritional effects of supplements—for example, that calcium supports the formation of strong bones. Why should they have to study the very hard-to-read fine print to know the ingredients? While Coke has survived the backlash against soda in schools, the sugar-sweetened carbonated beverage market has stopped growing. In addition to the growing populations of countries in the developing world, the company has the added benefit of a more lax regulatory environment, allowing Coke to take advantage of lower costs.
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As visitors come down the hill into the town of 60,, it takes on the appearance of an army camp, with bright red tents bearing the red Coke logo pitched all over town. But the visibility of Coke only hints at the complete cultural integration the fizzy beverage has achieved in Chamula. Facing the plaza is the Church of St. Nearly every day, gringo tourists line up outside the church, clutching tickets to observe the bizarre rituals within. As musicians near the altar play a repetitive dirge, small groups of women and children are burning clumps of small, tapered candles stuck into the flagstones.
Some are so close together, their combined flames look like a small campfire. As bewildered tourists wander among them today, a young girl opens up a cardboard box to lift out a clucking brown chicken. Her mother takes it, holding it by its neck and feet, as she rubs it over each of her children. Then laying it on the ground in front of her, she talks to it and soothes it before calmly breaking its neck. The ceremony is a healing art; the chicken is intended to take away the problems of those upon whom it is rubbed.
When it dies, the problems go away. By far the most prominent rituals in the church, however, are those involving soft drinks—which are used by the indigenous people here as a means of directly communing with God. Half-empty bottles of Pepsi and local drinks Big Cola and Gugar are scattered all over the ground amid the pine needles. The most common drinks, though, are half-liter bottles of Coke. He passes two small glasses to each member of the group, one full of pox, the other of Coke. Then the eldest man, who stands in the middle dressed in a black sheepskin vest and is missing most of his teeth, chants for five minutes.
It makes a confession to God and it comes back to your body.
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So significant has Coke become to the ritual life of the village that neighbors give it to celebrate births, deaths, and marriages, and judges order it as a means of payment in small claims court. Along with Canada and Hawaii, Mexico was one of the first foreign countries to sell Coke, dating back to For the next few decades, the company sold small amounts in Cuba, the Philippines, England, Germany, and other countries.
Early sales abroad ranged from sporadic to anemic. Then again, the bulk of the profits—up to 80 percent in some cases—flowed back to Atlanta. And not all countries were created equal. In Brazil, for example, a law prohibited drinks containing the preservative phosphoric acid, necessary to prevent degradation of caffeine.
As part of a bilateral trade agreement with the United States in , the country was forced to repeal the law. With the new economic and cultural hegemony came a new resentment from some foreigners, particularly in Europe, where the Marshall Plan facilitated the entry of American corporations, at the same time creating anxiety about the crass commercialism of American culture.
Background
In some cases, the opposition spilled out into open protest, often directed against the most obvious symbol of the United States: Coca-Cola. When the communists and their allies tried to pass a law in the French National Assembly to effectively ban Coke in France and its colonies, Coke reacted with immediate furor. The company called in all of its troops. As the combined political pressure defeated the anti-Coke alliance in the National Assembly, the company was in fact living up to the fears of those opposing it—becoming a cultural bully that imposed its will, and its products, on a country whether it liked it or not.