The Coke Machine (49 page)
Authors: Michael Blanding
Page 104 selectively shared revenue data:
Alison Leigh Cowan, “Food Fight,”
New York Times
, May 29, 2005.
Alison Leigh Cowan, “Food Fight,”
New York Times
, May 29, 2005.
Page 104 debate in the House was the longest:
Alison Leigh Cowan, “Hartford House Votes to Limit School Junk Food Sales,”
New York Times
, May 18, 2005.
Alison Leigh Cowan, “Hartford House Votes to Limit School Junk Food Sales,”
New York Times
, May 18, 2005.
Page 105 times when their parents had denied them candy:
Simon, 231.
Simon, 231.
Page 105 “well-stocked” cooler of Coke:
Alison Leigh Cowan, “Healthy Food in the Lunch-room? First, You Need a Healthy Debate,” May 16, 2005.
Alison Leigh Cowan, “Healthy Food in the Lunch-room? First, You Need a Healthy Debate,” May 16, 2005.
Page 105 support of 70 percent . . . allowing sales in high schools:
Simon, 231-232.
Simon, 231-232.
Page 105 “undermin[ing] the control and responsibility”:
Alison Leigh Cowan, “Rell Vetoes Junk-Food Limit in Connecticut’s Public Schools,”
New York Times
, June 15, 2005.
Alison Leigh Cowan, “Rell Vetoes Junk-Food Limit in Connecticut’s Public Schools,”
New York Times
, June 15, 2005.
Page 105 in France, lawmakers voted:
Isabelle de Pommereau, “French Schools’ New Bête Noire: Vending Machines,”
Christian Science Monitor
, October 8, 2004.
Isabelle de Pommereau, “French Schools’ New Bête Noire: Vending Machines,”
Christian Science Monitor
, October 8, 2004.
Page 105 “Clearly we are playing catch up”:
Scott Leith, “Obesity Weighs Heavy on Colas, Industry Studies How to Fight Back in Health Debate.”
Scott Leith, “Obesity Weighs Heavy on Colas, Industry Studies How to Fight Back in Health Debate.”
Page 105 “to better reflect the expanded range”:
PR Newswire, November 11, 2004.
PR Newswire, November 11, 2004.
Page 106 new director, Susan Neely:
“Ex-Homeland Security Official Susan Neely Takes the Helm at ABA,”
Beverage Digest
, April 29, 2005; Caroline Wilber, “Beverage Industry Ads Tout New School Policy,”
Atlanta Journal-Constitution
, October 13, 2005.
“Ex-Homeland Security Official Susan Neely Takes the Helm at ABA,”
Beverage Digest
, April 29, 2005; Caroline Wilber, “Beverage Industry Ads Tout New School Policy,”
Atlanta Journal-Constitution
, October 13, 2005.
Page 106 “The industry thinks”:
Caroline Wilbert, “Bottlers Across the Country Lobby to Stay in Schools,” Cox News Service, July 11, 2005.
Caroline Wilbert, “Bottlers Across the Country Lobby to Stay in Schools,” Cox News Service, July 11, 2005.
Page 106 Beverage Institute for Health and Wellness:
Dominic Mills, “Coke Calls In the Men in White Coats,”
Daily Telegraph
(London), March 16, 2004.
Dominic Mills, “Coke Calls In the Men in White Coats,”
Daily Telegraph
(London), March 16, 2004.
Page 106 conference in Mexico City:
Alex Beam, “A Knack for Cooking Up Controversy,”
Boston Globe
, November 4, 2004.
Alex Beam, “A Knack for Cooking Up Controversy,”
Boston Globe
, November 4, 2004.
Page 106 rose 74 percent . . . “the glory days”:
Scott Leith, “U.S. Soft-Drink Industry Ruminates on How to Recharge Its Batteries,”
Atlanta Journal-Constitution
, May 27, 2004.
Scott Leith, “U.S. Soft-Drink Industry Ruminates on How to Recharge Its Batteries,”
Atlanta Journal-Constitution
, May 27, 2004.
Page 106 quietly pushed Daft out:
Neil Buckley and Betty Liu, “Wall Street Is Convinced That Steven Heyer, the Company’s President and Chief Operating Officer, Is the Man for the Top Job,”
Financial Times
, March 10, 2004.
Neil Buckley and Betty Liu, “Wall Street Is Convinced That Steven Heyer, the Company’s President and Chief Operating Officer, Is the Man for the Top Job,”
Financial Times
, March 10, 2004.
Page 106 to take his place was Neville Isdell:
Claudia H. Deutsch, “Coca-Cola Reaches into Past for New Chief,”
New York Times
, May 5, 2004.
Claudia H. Deutsch, “Coca-Cola Reaches into Past for New Chief,”
New York Times
, May 5, 2004.
Page 107 “help more people by working”:
Andrew Ward, “Coke Joins Battle for the Brand,”
Financial Times
(London), November 21, 2006.
Andrew Ward, “Coke Joins Battle for the Brand,”
Financial Times
(London), November 21, 2006.
Page 107 in the core of the brand:
Andrew Ward, “Coke Gets Real: The World’s Most Valuable Brand Wakes Up to a Waning Thirst for Cola,”
Financial Times
, September 22, 2005.
Andrew Ward, “Coke Gets Real: The World’s Most Valuable Brand Wakes Up to a Waning Thirst for Cola,”
Financial Times
, September 22, 2005.
Page 107 eighteen to twenty-four months:
Caroline Wilbert, “Interview: Coke CEO Neville Isdell: Boss Confident About Strategy,”
Atlanta Journal-Constitution
, November 13, 2005.
Caroline Wilbert, “Interview: Coke CEO Neville Isdell: Boss Confident About Strategy,”
Atlanta Journal-Constitution
, November 13, 2005.
Page 107 “I came back to the Coca-Cola Company”:
Scott Leith, “New Chairman and Chief Executive Vows to Reignite Coke’s Growth,”
Atlanta Journal-Constitution
, September 16, 2004.
Scott Leith, “New Chairman and Chief Executive Vows to Reignite Coke’s Growth,”
Atlanta Journal-Constitution
, September 16, 2004.
Page 107 “Regardless of what the skeptics”:
Foust, “Gone Flat.”
Foust, “Gone Flat.”
Page 107 committed an extra $400 million:
Ward, “Coke Gets Real.”
Ward, “Coke Gets Real.”
Page 107 “Carbonated soft drinks”:
Raja Mishra, “In Battle of Bulge, Soda Firms Defend Against Warning,”
Boston Globe
, November 28, 2004.
Raja Mishra, “In Battle of Bulge, Soda Firms Defend Against Warning,”
Boston Globe
, November 28, 2004.
Page 107 “Healthier consumers are going to be”:
“Coke Boss Counters Obesity Criticisms,”
Toronto Star
, June 18, 2004.
“Coke Boss Counters Obesity Criticisms,”
Toronto Star
, June 18, 2004.
Page 107 Chicago and New York had joined:
Raja Mishra, “School Lunch Bill Targets Obesity: Bill Aims for Healthier School Lunches,”
Boston Globe
, October 10, 2004.
Raja Mishra, “School Lunch Bill Targets Obesity: Bill Aims for Healthier School Lunches,”
Boston Globe
, October 10, 2004.
Page 107 New Jersey passed the first:
John Holl, “School Policy in New Jersey to Take Junk off Lunch Tray,”
New York Times
, June 7, 2005.
John Holl, “School Policy in New Jersey to Take Junk off Lunch Tray,”
New York Times
, June 7, 2005.
Page 108 Arnold Schwarzenegger championed:
Dorsey Griffith, “Junk Food Junked: Governor Signs Bill Strictly Limiting Sales in Public Schools,”
Sacramento Bee
, September 9, 2005.
Dorsey Griffith, “Junk Food Junked: Governor Signs Bill Strictly Limiting Sales in Public Schools,”
Sacramento Bee
, September 9, 2005.
Page 108 PepsiCo had for the first time:
David Teather, “Bubble Bursts for the Real Thing As PepsiCo Ousts Coke from Top Spot,”
Guardian
, December 27, 2005.
David Teather, “Bubble Bursts for the Real Thing As PepsiCo Ousts Coke from Top Spot,”
Guardian
, December 27, 2005.
Page 108 4 percent increase . . . “There is growth”:
Caroline Wilbert, “Coke Exceeds Profit Target,”
Atlanta Journal-Constitution
, February 8, 2006.
Caroline Wilbert, “Coke Exceeds Profit Target,”
Atlanta Journal-Constitution
, February 8, 2006.
Page 108 “intellectual godfather of tobacco litigation”:
Activist Cash,
http://activistcash.com
; Center for Consumer Freedom,
http://www.consumerfreedom.com
.
Activist Cash,
http://activistcash.com
; Center for Consumer Freedom,
http://www.consumerfreedom.com
.
Page 109 $250 billion settlement:
Joe Nocera, “If It’s Good for Philip Morris, Can It Also Be Good for Public Health?”
New York Times
, June 18, 2007.
Joe Nocera, “If It’s Good for Philip Morris, Can It Also Be Good for Public Health?”
New York Times
, June 18, 2007.
Page 109 global tobacco treaty:
World Health Organization, “Global Tobacco Treaty Enters into Force with 57 Countries Already Committed,” press release, February 24, 2005.
World Health Organization, “Global Tobacco Treaty Enters into Force with 57 Countries Already Committed,” press release, February 24, 2005.
Page 109 “The number of analogies”:
Dick Daynard, interview by the author.
Dick Daynard, interview by the author.
Page 109 percolating since a conference:
Stephen Gardner, interview by the author.
Stephen Gardner, interview by the author.
Page 109 eventually backed down:
Keith Ervin, “School Board Is Warned Against Coke Contract,”
Seattle Times
, July 2, 2003; Tan Vinh, “Soft Drinks Limited for Middle-Schoolers; District Extends, Restricts Coca-Cola Contract,”
Seattle Times
, July 18, 2003.
Keith Ervin, “School Board Is Warned Against Coke Contract,”
Seattle Times
, July 2, 2003; Tan Vinh, “Soft Drinks Limited for Middle-Schoolers; District Extends, Restricts Coca-Cola Contract,”
Seattle Times
, July 18, 2003.
Page 109 “I look at Coke and Pepsi”:
Gardner, interview by the author.
Gardner, interview by the author.
Page 110 one study at Johns Hopkins University:
“Caffeine Added to Soft Drink to Addict Consumers, Says Study,”
Food & Drink Weekly
, August 21, 2000.
“Caffeine Added to Soft Drink to Addict Consumers, Says Study,”
Food & Drink Weekly
, August 21, 2000.
Page 110 “There are trial lawyers”:
Mindus, interview by the author.
Mindus, interview by the author.
Page 110 quietly approached Gardner:
Gardner, interview by the author.
Gardner, interview by the author.
Page 110 trouble finding plaintiffs:
Simon, interview by the author.
Simon, interview by the author.
Page 111 drew up a confidential document:
“Proposed School Beverage Policy, Draft Dated March 30, 2006 (2) For Discussion Only, Between the American Beverage Association and Industry Representatives, the Center for Science in the Public Interest, and Public Health Advocacy Institute.”
“Proposed School Beverage Policy, Draft Dated March 30, 2006 (2) For Discussion Only, Between the American Beverage Association and Industry Representatives, the Center for Science in the Public Interest, and Public Health Advocacy Institute.”
Page 111 even Governor Rell bowed . . . passed the bill in late April 2006:
Stacey Stowe, “To Some in Hartford, Coke Is a Real Evil Thing,”
New York Times
, April 7, 2006.
Stacey Stowe, “To Some in Hartford, Coke Is a Real Evil Thing,”
New York Times
, April 7, 2006.
Page 111 calling a press conference a week later:
American Beverage Association, “Statement by Susan Neely, American Beverage Association President and CEO Regarding the Partnership with the Alliance for a Healthier Generation on a New School Beverage Policy,” May 3, 2006.
American Beverage Association, “Statement by Susan Neely, American Beverage Association President and CEO Regarding the Partnership with the Alliance for a Healthier Generation on a New School Beverage Policy,” May 3, 2006.
Page 112 “I don’t think there are any villains here”:
Bruce Mohl, “After Soda Ban, Nutritionists Say More Can Be Done,”
Boston Globe
, May 4, 2006.
Bruce Mohl, “After Soda Ban, Nutritionists Say More Can Be Done,”
Boston Globe
, May 4, 2006.
Page 112 announced new guidelines . . . Advertising wasn’t even addressed:
Caroline Wilbert, Elizabeth Lee, and David Ho, “Beverage Industry Tightens Policy,”
Atlanta Journal-Constitution
, May 4, 2006.
Caroline Wilbert, Elizabeth Lee, and David Ho, “Beverage Industry Tightens Policy,”
Atlanta Journal-Constitution
, May 4, 2006.
Page 112 “I think there was considerable bad faith”:
Daynard, interview by the author. In an e-mail to the author, Alliance for a Healthier Generation spokesman Doug Cavarocchi declined comment on whether the organization was aware that a parallel negotiation was transpring.
Daynard, interview by the author. In an e-mail to the author, Alliance for a Healthier Generation spokesman Doug Cavarocchi declined comment on whether the organization was aware that a parallel negotiation was transpring.
Page 113 $10 million ad campaign:
Scott Leith, “Soft Drink Makers Start PR Offensive; Industry Ads Focus on Kids’ Health,”
Atlanta Journal-Constitution
, September 7, 2006.
Scott Leith, “Soft Drink Makers Start PR Offensive; Industry Ads Focus on Kids’ Health,”
Atlanta Journal-Constitution
, September 7, 2006.
Page 113 One school in Wisconsin . . . Portland, Oregon, school district:
Annys Shin, “Removing Schools’ Soda Is Sticky Point,”
Washington Post
, March 22, 2007; Arthur Gregg Sulzberger, “Threat of Fine Forces Talks on Coke Sales,”
Oregonian
(Portland), February 6, 2007.
Annys Shin, “Removing Schools’ Soda Is Sticky Point,”
Washington Post
, March 22, 2007; Arthur Gregg Sulzberger, “Threat of Fine Forces Talks on Coke Sales,”
Oregonian
(Portland), February 6, 2007.
Page 113 It took six months:
Krisy Obbink, director of dining services, Portland (Oregon) Public Schools, interview by the author.
Krisy Obbink, director of dining services, Portland (Oregon) Public Schools, interview by the author.
Page 113 local affiliates of the American Heart Association:
“Is the American Heart Association Pulling Its Troops out of State Beverage Fights?”
Corporate Crime Reporter
, June 1, 2006; Simon, e-mail to the author.
“Is the American Heart Association Pulling Its Troops out of State Beverage Fights?”
Corporate Crime Reporter
, June 1, 2006; Simon, e-mail to the author.
Page 113 A past president of the AHA:
David Faxon, interview by the author.
David Faxon, interview by the author.
Page 113 thirty-four states had some combination:
Michelle M. Mello et al., “The Interplay of Public Health Law and Industry Self-Regulation: The Case of Sugar-Sweetened Beverage Sales in Schools,”
American Journal of Public Health
98, no. 4 (April 2008), 13-22.
Michelle M. Mello et al., “The Interplay of Public Health Law and Industry Self-Regulation: The Case of Sugar-Sweetened Beverage Sales in Schools,”
American Journal of Public Health
98, no. 4 (April 2008), 13-22.
Page 114 On a federal level:
Jane Black, “Senate Drops Measure to Greatly Reduce Sugar and Fat in Food at Schools,”
Washington Post
, December 15, 2007.
Jane Black, “Senate Drops Measure to Greatly Reduce Sugar and Fat in Food at Schools,”
Washington Post
, December 15, 2007.
Page 114 study by a consultant . . . down 88 percent:
American Beverage Association, Alliance School Beverage Guidelines Final Progress Report, March 8, 2010.
American Beverage Association, Alliance School Beverage Guidelines Final Progress Report, March 8, 2010.
Page 114 “It’s a brand new day”:
American Beverage Association, “Beverage Industry Delivers on Commitment to Remove Regular Soft Drinks in Schools, Driving 88% Decline in Calories,” March 8, 2010.
American Beverage Association, “Beverage Industry Delivers on Commitment to Remove Regular Soft Drinks in Schools, Driving 88% Decline in Calories,” March 8, 2010.
Page 114 grudgingly accept the ABA report:
Margo Wootan, interview by the author.
Margo Wootan, interview by the author.
Page 114 industry-funded study with a jaundiced eye:
Roberta Friedman, public policy director, Rudd Center for Food Policy and Obesity, Yale University, and Simon, interviews by the author.
Roberta Friedman, public policy director, Rudd Center for Food Policy and Obesity, Yale University, and Simon, interviews by the author.
Page 114 one independent study . . . never even heard of them:
Lindsey Turner, research assistant professor of nutrition, Institute for Health Research and Policy, University of Illinois, Chicago, interview by the author.
Lindsey Turner, research assistant professor of nutrition, Institute for Health Research and Policy, University of Illinois, Chicago, interview by the author.
Page 115 soda sales fell in the United States:
Melanie Warner, “Soda Sales Fall for First Time in 20 Years,”
New York Times
, March 9, 2006.
Melanie Warner, “Soda Sales Fall for First Time in 20 Years,”
New York Times
, March 9, 2006.
Page 115 2.3 percent . . . in 2009:
Valerie Bauerlein, “U.S. Soda Sales Fell at Slower Rate Last Year,”
Wall Street Journal
, March 25, 2010.
Valerie Bauerlein, “U.S. Soda Sales Fell at Slower Rate Last Year,”
Wall Street Journal
, March 25, 2010.
Page 116 A 2008 study in Maine:
Janet E. Whatley Blum et al., “Reduced Availability of Sugar-Sweetened Beverages and Diet Soda Has a Limited Impact on Beverage Consumption Patterns in Maine High School Youth,”
Journal of Nutrition Education and Behavior
40, no. 6 (November-December 2008), 341-347.
Janet E. Whatley Blum et al., “Reduced Availability of Sugar-Sweetened Beverages and Diet Soda Has a Limited Impact on Beverage Consumption Patterns in Maine High School Youth,”
Journal of Nutrition Education and Behavior
40, no. 6 (November-December 2008), 341-347.
Page 116 Another study, of 11,000 fifth-graders:
Meenakshi M. Fernandes, “The Effect of Soft Drink Availability in Elementary Schools on Consumption,”
Journal of the American Dietetic Association
108, no. 9 (September 2008), 1445-1452; Elsevier company news, “New Study Assesses the Impact of Soft Drink Availability in Elementary Schools on Consumption,” September 2, 2008.
Meenakshi M. Fernandes, “The Effect of Soft Drink Availability in Elementary Schools on Consumption,”
Journal of the American Dietetic Association
108, no. 9 (September 2008), 1445-1452; Elsevier company news, “New Study Assesses the Impact of Soft Drink Availability in Elementary Schools on Consumption,” September 2, 2008.
Page 116 6 percent in 2007 and 5 percent in 2008:
The Coca-Cola Company Annual Report 2009.
The Coca-Cola Company Annual Report 2009.
Page 116 80 percent of Coke’s total sales:
Joe Guy Collier, “Worldwide Sales a Tonic for Coke,”
Atlanta Journal-Constitution
, November 16, 2008.
Joe Guy Collier, “Worldwide Sales a Tonic for Coke,”
Atlanta Journal-Constitution
, November 16, 2008.
Page 116 “lost generation” for soda:
Caroline Wilbert, “Teens Back Off Sugary Drinks,”
Atlanta Journal-Constitution
, June 22, 2006.
CHAPTER 5. THE BOTTLED WATER LIECaroline Wilbert, “Teens Back Off Sugary Drinks,”
Atlanta Journal-Constitution
, June 22, 2006.
Page 119 Perrier had introduced . . . getting for free:
Elizabeth Royte,
Bottlemania: How Water Went on Sale and Why We Bought It
(New York: Bloomsbury USA, 2008), 30; Charles Fishman, “Message in a Bottle,”
Fast Company
, December 19, 2007.
Elizabeth Royte,
Bottlemania: How Water Went on Sale and Why We Bought It
(New York: Bloomsbury USA, 2008), 30; Charles Fishman, “Message in a Bottle,”
Fast Company
, December 19, 2007.
Page 119 Perrier’s profits from water rose:
Fishman, “Message in a Bottle.”
Fishman, “Message in a Bottle.”
Page 119 Evian, pioneered the use of lightweight bottles:
Fishman, “Message in a Bottle.”
Fishman, “Message in a Bottle.”
Page 120 $160 million recall:
Alan Riding,
New York Times
, “Perrier Widens Recall After Finding,” February 15, 1990.
Alan Riding,
New York Times
, “Perrier Widens Recall After Finding,” February 15, 1990.
Page 120 swooped in to acquire Perrier:
Richard Tomlinson, “Troubled Waters at Perrier,”
Fortune
, November 29, 2004.
Richard Tomlinson, “Troubled Waters at Perrier,”
Fortune
, November 29, 2004.
Page 120 sales shot up from $115 million:
Royte, 33; Tony Clarke,
Inside the Bottle: Exposing the Bottled Water Industry
(Ottawa: Canadian Centre for Policy Alternatives, 2007 [orig. pub. 2005]), 24.
Royte, 33; Tony Clarke,
Inside the Bottle: Exposing the Bottled Water Industry
(Ottawa: Canadian Centre for Policy Alternatives, 2007 [orig. pub. 2005]), 24.
Page 120 profit margins on water:
Clarke, 83; Betsy McKay, “Coke Strays from the Real Thing—Investors Fret That Bottled Water, Other Beverages, Don’t Quench Their Thirst for Soft-Drink Profit,”
Wall Street Journal
, October 29, 2002.
Clarke, 83; Betsy McKay, “Coke Strays from the Real Thing—Investors Fret That Bottled Water, Other Beverages, Don’t Quench Their Thirst for Soft-Drink Profit,”
Wall Street Journal
, October 29, 2002.
Page 120 proprietary mix of minerals:
Hays, 246-247.
Hays, 246-247.
Page 120 Intended to signal relaxation and refreshment:
David F. Gallagher, “Just Say No to H
2
O (Unless It’s Coke’s Own Brew),”
New York Times
, September 2, 2001.
David F. Gallagher, “Just Say No to H
2
O (Unless It’s Coke’s Own Brew),”
New York Times
, September 2, 2001.
Page 120 bought Belmont Springs . . . lackluster sales:
Clarke, 30.
Clarke, 30.
Page 120 $20 million campaign:
“Dasani Pours on Wellness,”
Brandweek
, April 23, 2001.
“Dasani Pours on Wellness,”
Brandweek
, April 23, 2001.
Page 120 Coke targeted women . . . replenished themselves with Dasani:
“Dasani and
Glamour
Magazine Launch National Contest to Honor Women at Their Best,” Internet Wire, July 19, 2002.
“Dasani and
Glamour
Magazine Launch National Contest to Honor Women at Their Best,” Internet Wire, July 19, 2002.
Page 121 up to $8.5 billion overall:
Beverage Marketing Corporation, “Bottled Water Perseveres in a Difficult Year, New Data from Beverage Marketing Corporation Show,” April 20, 2009.
Beverage Marketing Corporation, “Bottled Water Perseveres in a Difficult Year, New Data from Beverage Marketing Corporation Show,” April 20, 2009.
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