How A Pharmacist's Invention Became the World's Most Valuable Brand

overview

Coca-Cola is… sugar water. And somehow it’s also America, Christmas, summertime, friendship and happiness. Today we tell the story of how The Coca-Cola Company amazingly transmogrified a beverage into emotion in all of our collective psyches, and ALSO built one of the most incredible scale economy businesses of all-time. And oh yeah, there’s also cocaine, WW2, Mad Men, Warren Buffett, James Dean, Bill Cosby, Michael Jackson, Michael Ovitz, Steve Jobs, Bill Gates, McDonald’s and Monsanto. So cozy up to the fire with your favorite images of Santa Claus and Polar Bears and enjoy an ice-cold episode of Acquired — always delicious, always refreshing.
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We said that Fanta was created in Nazi Germany. While that is indeed the origin of the first drink called Fanta, the modern Fanta is a different beverage (originating in the Naples, Italy bottling plant) for which the Coca-Cola company used the same “Fanta” name since they already had the trademark.
We said that Sprite was originally the German Fanta Clear Lemon. The folks at the Coca-Cola Archives informed us that while Sprite was originally launched under the Fanta Beverage company (a Coca-Cola Company subsidiary), Sprite was always intended as a stand-alone beverage. It also pre-dated Fanta Lemon-Lime.
The depression was actually not inflationary, but deflationary! (i.e., inflation was negative)
We were perhaps unfair to Warren & Charlie in judging the Berkshire investment in Coke. Berkshire has re-invested the huge dividends provided by Coke over their ~4 decades of stock ownership at great profit, as-is Berkshire’s strategy. Through that lens, Coke was one of the best capital allocations options available to Berkshire over that time period, especially in the early years.

Note: Acquired hosts and guests may hold assets discussed in this episode. This podcast is not investment advice, and is intended for informational and entertainment purposes only. You should do your own research and make your own independent decisions when considering any financial transactions.