CASE STUDY Coca Cola

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CASE STUDY

INTRO:
Coca-Cola is the world’s best-known beverage company. It traditionally manufactured concentrates,
syrups and powders and sold them to authorized bottling partners, who converted them to finished
products and sold them to distributors, wholesalers and retailers. Its core product offering is sparkling
beverages but also includes still beverages such as water, juice and energy drinks. From its inception, the
company was based on a franchise model – the “Coca-Cola System” – whereby Coca-Cola would sell
concentrate to its many bottling partners worldwide. While Coca-Cola managed the overall brand
strategy, concentrate production and some large multinational customers such as McDonald’s, the bottlers
manufactured the final branded products, handled merchandising and distribution, and worked closely
with local customers.
IMPACTS:
Coca-Cola, with more than 500 brands, sells more than 100 billion plastic bottles every year. This equates
to 200,000 bottles a minute. Of these, an unrecoverable large part ends up in the environment, and
definitely in places where waste is not collected and processed. For the fourth consecutive year, the
conglomerate has been declared the world’s biggest polluter, bigger than numbers two (PepsiCo) and
three (Unilever) put together. Coca-Cola supports jobs, tax revenues and incomes for households and
firms, shares best practices within the local market, and carries out environmental and social projects
throughout its value chain.
ATTITUDE:
In the same week that Coca-Cola made its pledge, the American NGO Conservation Law Foundation
(CLF) issued a critical report about the drinks industry entitled ‘The Big Beverage Playbook for avoiding
responsibility’. The report covers the box of tricks that drinks giants use to skirt around their
responsibility and to decrease costs.
One such trick is making pledges that are then not achieved. Coca-Cola has a very poor track record here.
It has not achieved even one of its sustainability pledges. In 1990 it promised to use an average of 25% of
recyclates in its PET bottles. Now, three decades later, that percentage is only 10%. Over the years the
recyclate goal has been constantly readjusted, the last time as part of Coca-Cola’s World Without Waste
initiative. It now says that in 2030, its bottles will be made of 50% recycled material.
The CLF report notes that goals and promises are always voluntary and that there are no sanctions if a
goal is not achieved. If it does not achieve one of its goals, the company blames uncontrollable external
factors such as consumers who do not recycle enough.
-https://www.ft.com/content/aad28ad0-2417-11e0-a89a-00144feab49a
-https://www.plasticsoupfoundation.org/en/2022/02/is-coca-colas-latest-promise-really-a-step-forward/
#:~:text=BIGGEST%20POLLUTER%20IN%20THE%20WORLD,is%20not%20collected%20and
%20processed.
-https://www.stewardredqueen.com/what-we-do/coca-cola/#:~:text=Coca%2DCola%20supports%20jobs
%2C%20tax,projects%20throughout%20its%20value%20chain. (Sites of
information)

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