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Michael F. Jacobson

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Is Coke's Fizz Going Flat?

Posted: 02/03/10 12:18 PM ET

Like a tobacco company, Coca-Cola primarily sells one product--in its case, sugar water--that is linked to a number of diseases. It's under fire all over the world for its environmental, human rights, and health record. Here at home, it finds itself as the potential target of new taxation, expelled from America's schools, and outflanked by its nimbler competitor, PepsiCo. Angry parents, activist scientists, and wary shareholders are watching the company's every step.

Check sales. Notwithstanding hundreds of millions of dollars invested in advertising, over the past decade, U.S. sales, per capita, of flagship Coca-Cola have declined by 26 percent between 1998 and 2008. (Though Pepsi-Cola sales have declined even more, PepsiCo can make up in sales of Frito-Lay, Quaker, and Tropicana products for what it loses in soda sales.)

In the Wall Street Journal last October, CEO Muhtar Kent whined that his industry "has become an easy target in this debate [over health and taxes]." That's true, but the company has basically painted the bull's-eye on its own forehead. And now it's scrubbing furiously to wash it away.

The company is mounting both defensive actions against a grimmer future and a PR offensive to persuade the public that it is our friend--benevolently helping us achieve "a balanced diet and active lifestyle" by advertising its commitment to children's well-being, listing calories on labels, and marketing low-calorie New Age drinks like Enviga and VitaminWater. (But don't always believe the label claims on those drinks or the ads. My organization has sued Coca-Cola over the misleading labeling and advertising of both of them.) And those lower-calorie Cokes that the company has been touting in ads? At my local supermarket, 7.5-ounce cans cost more than twice as much per ounce as 12-ounce cans! You'll save money by buying 12-ounce cans and pouring a third or more down the drain.

Lately, one of Coke's top priorities has been to attack the idea of taxing soft drinks to fund health-care reform. Health experts, including former New York City health commissioner Tom Frieden (now head of the federal Centers for Disease Control and Prevention) and Yale obesity expert Kelly Brownell, say that such taxes make perfect sense. After all, soft drinks are the only food or beverage that has been demonstrated to cause weight gain and obesity, arguably America's biggest health challenge. Obesity rates in children have tripled over the past 30 years. A tax would both cut consumption and potentially raise $10 billion a year. Coca-Cola has spent more than $5 million on advertisements and more than a dozen lobbyists to stymie the health advocates, and helps fund the American Beverage Association's "Americans Against Food Taxes" advertising campaign.

Meanwhile, like the tobacco companies were famous for doing, Coke has been spending like a drunken sailor to win friends or at least neutralize potential critics. That's why several years ago it gave a million dollars to the American Academy of Pediatric Dentists (almost overnight the group stopped linking soft drinks and tooth decay, instead equivocating that the "scientific evidence is certainly not clear"). Several months ago Coke gave hundreds of thousands of dollars to the American Academy of Family Physicians, another potential ally or foe. And the company has given money to various Latino organizations--such as the National Hispana Leadership Institute and the League of United Latin American Citizens--who lent their names to full-page newspaper ads opposing a federal soda tax.

Less public is the company's funding of a bare-knuckles public-relations firm, Berman & Co., which runs a front group with the Orwellian name Center for Consumer Freedom. That company attacks consumer and health groups in ways that the public-spirited-wannabe Coca-Cola Company can't afford to do using its own brand name.

Coca-Cola's carefully cultivated family-friendly image is unraveling elsewhere in the world, too. The company is fending off unproven but troubling charges ranging from complicity in the deaths of union officials in Colombia to marketing to school kids in Mexico to using up ground water in parched Indian villages. Overseas, as in the United States, there's a race between increasing health-consciousness and increasing soda marketing.

Though Coca-Cola created one of America's iconic consumer products, its time may be running out. All of the company's marketing campaigns and all of the company's political contributions may not be able to put King Coke together again. An increasingly powerful coalition, composed of epidemiologists, clinical researchers, angry moms, and elected officials, is demanding change. That's what has been fuelling the bans on sales of soft drinks on school campuses, the increasing talk of excise taxes, and an anti-soda publicity campaign mounted by the New York City health department. The end result should be seen in weaker sales and slimmer waistlines.

 

Follow Michael F. Jacobson on Twitter: www.twitter.com/CSPI

Like a tobacco company, Coca-Cola primarily sells one product--in its case, sugar water--that is linked to a number of diseases. It's under fire all over the world for its environmental, human rights...
Like a tobacco company, Coca-Cola primarily sells one product--in its case, sugar water--that is linked to a number of diseases. It's under fire all over the world for its environmental, human rights...
 
 
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04:28 PM on 03/19/2010
Soda pop has been around since early in the 20th century but is only being associated with weight gain in the past 30-some years.

What changed (other than the HFCS replacing sugar)?

My answer is the cultural acceptance of soda pop as a beverage. When I was growing up (50s/60s) soda was a dessert reserved for special occasions. A 6-pack of soda lasted for weeks in our home. One bottle was split as a treat for three people on a hot summer evenings after a long day of outdoor work/play. It was served in 4 or 6 oz glasses, poured over tiny scoops of vanilla ice cream. We never used the stuff except in summer.

Marketing drove the transformation, along with the vending machines that were everywhere by the early 70s. We are now several generations in to accepting this stuff as a replacement for water or milk. New parents need to be taught to give their children water as the first response to thirst.
09:21 PM on 02/09/2010
At least Coca-Cola took out the coke! That's something...
12:33 PM on 02/07/2010
I was very disappointed to see in this morning's paper that the soda tax has been effectively killed by Congress. It's a shame that lobbyists have so much influence on our elected officials on this and other important issues. It's no wonder Congress is held in such low esteem by the public, but I think your campaign to inform people about this topic is commendable.
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Michael F. Jacobson
11:23 AM on 02/08/2010
Yes, the Los Angeles Times ran a great article about the soda industry's pressure on Congress and the public. But let's not get too depressed about Congress's failure to date to tax "liquid candy." The issue is a new one for most people, and, considering federal budget deficits, the need for more revenues will be perpetual. Let's keep at it.

The article is at
www.latimes.com/news/nation-and-world/la-na-soda-tax7-2010feb07,0,282916.story
www.latimes.com/news/nation-and-world/la-na-soda-tax7-2010feb07-g,0,7058408.graphic
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Robert Nix
My bio is not micro
11:44 AM on 02/06/2010
I just have one question. Why is it that a can of Coke cost 75 cents and a bottle of Dasani is 1 dollar? They give you just the water keep all the additives then charge you more?
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HUFFPOST COMMUNITY MODERATOR
Gudrun
My micro-bio is empty
04:49 PM on 02/06/2010
The Dasani is a dollar because that's what people are willing to pay for it.
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Bushisgone
11:54 PM on 02/05/2010
I know a way Pepsi and Coke can get those lost market % back

Remove High Fructose Corn Syrup out of their drinks and replace it with real sugar

The stuff is poison
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Michael F. Jacobson
10:05 AM on 02/06/2010
Unfortunately, from a nutritional perspective, sugar is no better than HFCS (despite all the talk to the contrary). The situation is so crazy that some soft drink companies are bragging "No HFCS" and pretending that their "liquid candy" is some kind of health food!

The scientists who originally hypothesized that HFCS is more conducive to obesity than sugar have withdrawn that hypothesis and agree that both are equally bad. We need to consume less of both---and soft drinks are the best place to start.
01:56 PM on 02/06/2010
Exactly, and well-said. Though I think there are plenty of other reasons to reduce our consumption of corn syrup.
07:17 PM on 02/05/2010
At first, because of the headline, I thought Coca Cola was going to lessen the carbonation in their soda.(Egad!!) Further on I realized the writer has a beef with the company and has sued CocaCola in the past and possibly has a current lawsuit(s) against the company.(Aha!!) Then I read about the evils of sugar.(Boo!!)
Okay! I get it. But I am not giving up my one can of coke a day. That's my treat instead of donuts or cake or chips or anything else dieticians will yell at you to stop eating.
I like coca cola. I like it fizzy (yeah!) and I like it sweet (mmm, sugar...). I like the diet coke w/splenda so it tastes sweet like sugar but no calories. (More than one!!) And since I thought this article was really some ado about little I added my little comments, too.
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goddess1871
Sick to freakin' death
10:19 AM on 02/06/2010
I personally could never give up my Coke Zero.
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MikeDu
Both salubrious and lugubrious concurrently.
12:52 PM on 02/05/2010
Yeh yeh, Coke is the new demon drink. Why no mention of 'demon drink' Pepsi? Is Pepsi somehow less demonic? Coke is losing market share for the same reason TV networks are losting market share. A mediocre product in a fragmented market. Plus an insane pricing scheme. A can costs more than a buck now, and 2 liters costs pretty much the same.

If you want to blame someone for Coke's eclipse blame corporate-think. They give you as little as they think they can get away with and charge as much as the market will bear. Coke currently tastes only vaguely similar to a Coke of 30 years ago. I swear, much 'carbonation' these days seems to be little more than chemical 'carbonation taste'.
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Michael F. Jacobson
10:07 AM on 02/06/2010
Yes, Pepsi (and Mountain Dew and Sunkist Orange soda and Jones sodas, etc.) are every bit as bad as Coke, but it does seem as if Coca-Cola Co. engages in more dubious corporate practices.
11:18 AM on 02/05/2010
One of the critics of The Coca-Cola Co. is the Campaign to Stop Killer Coke (http://www.killercoke.org). This campaign has cost the company millions with more than 50 colleges and universities having removed Coke products from their campuses and some of the largest labor unions in the world having removed Coke from its facilities and functions.

Recently, a documentary, "The Coca-Cola Case," was released in Canada, the U.S. and Europe and has been attracting SRO audiences. The film focuses on the lawsuits against Coke and the Campaign to Stop Killer Coke. Here is a link to a recent newsletter that discusses the film and other issues around Coke's abuses: http://www.ymlp123.com/pubarchive_show_message.php?stopkillercoke+511.
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suzjazz
jazz pianist, composer, professor, author
10:46 PM on 02/04/2010
Coca-Cola has been (and probably still is) involved in the murder of union organizers in India. You won't hear about this on the so-called news on TV, though.
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suzjazz
jazz pianist, composer, professor, author
10:44 PM on 02/04/2010
"That's why several years ago it gave a million dollars to the American Academy of Pediatric Dentists (almost overnight the group stopped linking soft drinks and tooth decay, instead equivocating that the "scientific evidence is certainly not clear")."

So much for ethics in dentistry.
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AdV2k1
09:27 PM on 02/04/2010
pepsi is better anyway
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mizerello
Don't Believe in MIcro-Bios!
09:18 PM on 02/04/2010
I stopped drinking coke and subsequently most other soft drinks after seeing a documentary on Coke's activities in India. It was an eye opening experience, and while there are times, I must admit, I would love a cold Coke, I drink water. We are now at the point in the World that no matter what it is we eat or buy, there is an effect somewhere in our environment. All of the bottled water ( much of it simply tap water that is filtered and then stuck into plastic bottles), soft drinks, vitamin water (a joke in my opinion) and every other drink we buy at our grocery stores uses up water in huge amounts, not only simply in the bottles themselves but in the production of the product. I've heard that for every 12. oz can of a soda, it can take a gallon of water. And the resources we are using to store these drinks--plastic, aluminum, glass--are either bad for the environment or in limited supply. We simply don't have the resources left to continue living this way. It's a new world folks!
06:21 PM on 02/04/2010
Sugar graves more Sugar. Do you really want to know what a can of Coke can do? Open the hood of your car and pour a can of Coke over the battery and see and listen what they does! Because thats what its doing to your stomach! Plus it has about 18 teaspoon of SUGAR in it.
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JScott
John Galt's last name is McGuffin-Smithee
04:44 PM on 02/04/2010
Interestlngly the self serve beverage bars that a lot of places have, have way to much fizzy soda and not enough cola flavor in their machines, no wonder folks crave the mexican versions, less fizz more flavor and sweetened with sugar not HFCS.

I find the mexican fruit sodas more delicatlely carbonated and have way more flavor.

And after sampling some of CocaCola's other offerings at their museum in Atlanta (a lot of what tasted just yeccchy), not surprised they aren't doing too well.
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BebeLush
The Tao of Pooh
04:17 PM on 02/04/2010
I'm not drinking a glass of water with my pizza.
07:46 PM on 02/04/2010
Pizza and Tex-Mex aren't good without some kind of soda. I guess the fizz is needed to counteract the grease.
01:57 PM on 02/06/2010
What about beer? And it's much easier to find locally.
05:44 PM on 02/05/2010
For real.