Assignment Of the Hindustan

Bottling Plant Industrial Visit

From

International Institute of Business Studies

By- Sandip kumar Singh

R
oll No-. 44
BATCH-(M09)
 History of Coca-Cola

Coca-Cola was invented by Doctor John Pemberton a pharmacist

from Atlanta Georgia in May of 1886. John Pemberton concocted
the Coca Cola formula in a three legged brass kettle; all this was
done in his backyard. The name Coca Cola was actually given to
John Pemberton by his bookkeeper Frank Robinson
Frank Robinson had excellent penmanship. He first scripted "Coca
Cola" into the flowing letters which has become the famous logo
we know and love today.

The soft drink was first sold to the public at the soda fountain in Jacob's Pharmacy in Atlanta on
May 8, 1886. About nine servings of the soft drink were sold each day. Sales for that first year
added up to a total of about $50. The funny thing was that it cost John Pemberton over $70 in
expanses, so the first year of sales were a loss. Until 1905, the soft drink, marketed as a tonic,
contained extracts of cocaine as well as the caffeine-rich kola nut.
In 1887, another Atlanta pharmacist and businessman, Asa Candler bought the formula for Coca
Cola from inventor John Pemberton for $2,300.

By the late 1890s, Coca Cola was one of America's most popular fountain drinks; Candler's
aggressive marketing of the product takes credit for that. With Asa Candler, now at the helm, the
Coca Cola Company increased syrup sales by over 4000% between 1890 and 1900.

Advertising was an important factor in John Pemberton and Asa Candler's success and by the
turn of the century, the drink was sold across the United States and Canada. Coca Cola began
selling syrup to independent bottling companies licensed to sell the drink. Still today, the US soft
drink industry is organized on this principle

Evolution of Coca-Cola
Coca-Cola® originated as a soda fountain beverage in 1886 selling for five cents a glass. Early
growth was impressive, but it was only when a strong bottling system developed that Coca-Cola
became the world famous.

1894 – A modest start for a Bold Idea

In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage called Coca-
Cola impressed the store's owner, Joseph A. Biedenharn. He began bottling Coca-Cola to sell,
Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler thanked him but took no action.
One of his nephews already had urged that Coca-Cola be bottled, but Candler focused on fountain sales.

1899 The first bottling agreement

Two young attorneys from Chattanooga, Tennessee believed they could
build a business around bottling Coca-Cola. In a meeting with Candler,
Benjamin F. Thomas and Joseph B. Whitehead obtained exclusive
rights to bottle Coca-Cola across most of the United States (specifically
excluding Vicksburg) -- for the sum of one dollar. A third Chattanooga
lawyer, John T. Lupton, soon joined their venture.

1900-1909 … Rapid growth

The three pioneer bottlers divided the country into territories and sold bottling rights to local
entrepreneurs. Their efforts were boosted by major progress in bottling technology, which
improved efficiency and product quality. By 1909, nearly 400 Coca-Cola bottling plants were
operating, most of them family-owned businesses. Some were open only during hot-weather
months when demand was high.

1916 … Birth of the contour bottle

Bottlers worried that the straight-sided bottle for Coca- Cola
was easily confused with imitators. A group representing the
Company and bottlers asked glass manufacturers to offer
ideas for a distinctive bottle. A design from the Root
Glass Company of Terre Haute, Indiana won enthusiastic
approval in 1915 and was introduced in 1916. The
contour bottle became one of the few packages ever
granted trademark status by the U.S. Patent Office. Today, it's one of the
most recognized icons in the world - even in the dark!

1920s … Bottling overtakes fountain sales

As the 1920s dawned, more than 1,000 Coca-Cola bottlers were operating in the U.S. Their ideas
and zeal fueled steady growth. Six-bottle cartons were a huge hit after their 1923 introduction. A
few years later, open-top metal coolers became the forerunners of automated vending machines.
By the end of the 1920s, bottle sales of Coca-Cola exceeded fountain sales.

1920s and 30s … International expansion

Led by longtime Company leader Robert W. Woodruff, chief
executive officer and chairman of the Board, the Company began a
major push to establish bottling operations outside the U.S. Plants were
opened in France, Guatemala, Honduras, Mexico, Belgium, Italy, Peru, Spain, Australia and
South Africa. By the time World War II began, Coca-Cola was being bottled in 44 countries.

1940s … Post-war growth

During the war, 64 bottling plants were set up around the world to supply
the troops. This followed an urgent request for bottling equipment and
materials from General Eisenhower's base in North Africa. Many of
these war-time plants were later converted to civilian use, permanently
enlarging the bottling system and accelerating the growth of the
Company's worldwide business.

1950s … Packaging innovations

For the first time, consumers had choices of Coca-Cola package size
and type -- the traditional 6.5-ounce contour bottle, or larger
servings including 10-, 12- and 26-ounce versions. Cans were also introduced, becoming
generally available in 1960.

1960s … New brands introduced

Following Fanta® in the 1950s, Sprite®, Minute Maid®, Fresca and TaB® joined brand Coca-
Cola in the 1960s. Mr. Pibb® and Mello Yello® were added in the 1970s. The 1980s brought
diet Coke® and Cherry Coke®, followed by POWERADE® and DASANI® in the 1990s.
Today hundreds of other brands are offered to meet consumer preferences in local markets
around the world.

1970s and 80s … Consolidation to serve customers

As technology led to a global economy, the retailers who sold Coca-Cola merged and evolved
into international mega-chains. Such customers required a new approach. In response, many
small and medium-size bottlers consolidated to better serve giant international customers. The
Company encouraged and invested in a number of bottler consolidations to assure that its largest
bottling partners would have capacity to lead the system in working with global retailers.

1990s … New and growing markets

Political and economic changes opened vast markets that were closed or underdeveloped for
decades. After the fall of the Berlin Wall, the Company invested heavily to build plants in
Eastern Europe. And as the century closed, more than $1.5 billion was committed to new bottling
facilities in Africa.

21st Century
The Coca-Cola bottling system grew up with roots deeply planted in local communities. This
heritage serves the Company well today as people seek brands that honor local identity and the
distinctiveness of local markets. As was true a century ago, strong locally based relationships
between Coca-Cola bottlers, customers and communities are the foundation on which the entire
business grows.
2001 … launched the new fridge pack in USA a thinner longer 12 pack design
2005 … innovative aluminum contour bottles introduced commonly called M5 as the
magnificent five bottles., Coca Cola zero a zero calorie coca cola with real coca cola taste
launched
2006 … coca cola turns 120. Launches the “every drop counts” campaign to make the
consumers remind of the variety of products coca cola offers
2007 … launches the PET bottle which uses 5% less plastic than the other PET bottles. Opens
up new world of coca cola in Atlanta Georgia on may 24th

Formula
The exact formula of Coca-Cola is a famous trade secret. The original copy of the formula is
held in SunTrust Bank's main vault in Atlanta. Its predecessor, the Trust Company, was the
underwriter for the Coca-Cola Company's initial public offering in 1919. A popular myth states
that only two executives have access to the formula, with each executive having only half the
formula. The truth is that while Coca-Cola does have a rule restricting access to only two
executives, each knows the entire formula and others, in addition to the prescribed duo, have
known the formulation process.

My visit to HCCBPL, Bidadi

I made my second Industrial visit to Hindustan Coca-Cola Bottling Plant at Bidadi in the
outskirts of Bangalore city. The trip was on 26th of Dec., 2009. We left our college in two
different buses in the morning. The plant was about 45 km away from our college. It took us
about an hour and half to reach there. The plant is being built at Bidadi Industrial area where a
lot of other industries are also located.
After reaching the plant we waited for about 10-15 mins to get
clearance from the authorized personnel for our visit. Then we got in, on the way inside we could
see several notices which displayed quality policy of the plant.
 Mission: “We the
team of the HCCBPL,
Bidadi shall ensure
efficient and
effective use of water
during beverage
manufacturing
process in our plant
by continually
improving the
infrastructure,
monitoring and
controlling the
consumption of
water in individual
Next I came across their mission and vision statement
area and imparting
training to our
associates.”
Vision: “Efficiently
reduce, re-use,
recycle and recharge
“Towater
Ensureas Customer
a
responsible
Delight ,We Commit
corporate citizen.”
to Quality in
Thoughts ,Deeds and
Action By
Continually
Right after that all of us were taken into a conference room
inside which we were supplied with a couple of drinks. Improving Our
Then came the quality control official of the plant. She
with the help of projector presentation gave us a brief idea Processes. ”
about Coca-Cola Company as a whole and their operations
in India especially in Bangalore and neighboring areas. She explained us about the basic
structure of the plant at Bidadi.
1. The plant occupied an area of about 16 acres of land
2. Currently the number of production lines at the plant was 5 i.e. coke plastic and glass,
sprite plastic and finally two lines for fanta too.
3. The manufacture of maaza was not being done in the plant which instead is carried out
in another plant nearby Tirupathi in Andhra Pradesh.
4. A newly installed technically sophisticated production line has been introduced in the
plant
5. Coke has 6 brands in India namely Coca-Cola, Fanta, Thumbs up, Sprite, Maaza and
Minute maid Pulpy Orange

After she had explained all these we were taken inside the plant. Upon examining the
production process myself I was amazed to get a lot of information as well as knowledge
about what’s happening inside a real bottling plant of Coke which I have often as a cool
drink.

The Process

a. Water drawn from the premises of the plant had to undergo three layers of filtering
before it was used for the soft-drink manufacture. The first one being through a
layer of activated carbon filter then primary filtering which is a kind of basic filtering
and finally ultra violet filtering.
b. Sugar which is taken only from authorized dealers is then made into the form of a
syrup to be mixed with water at temperatures between 70-80 degree Celsius to
ensure free of germs.
c. The corresponding bottles that are made from a plastic “free form” is washed
thoroughly starts to move along the production line awaiting the chamber in which
the mixture of Carbonated soft-drink [CSD] which includes the primary mixture of
water with sugar syrup and the secret concentrate is filled into the bottles.
d. Finally the bottles get sealed and stay in the final segment of production line at
which they are labeled and packed ready for sale.
e. Currently there are two machine running 600 bottles per/min [plastic] and 250
bottles per/min [glass]

Conclusion
 Around about 4 pm we completed our visit and boarded our buses for return. In
short the trip was fun, exciting, informative and useful. I surely would love to go for
such trips in future which I’m anticipating highly to happen.

The Coca-Cola System

We are a global business that operates on a local scale, in every community where we do
business. We are able to create global reach with local focus because of the strength of the Coca-
Cola system, which comprises our Company and our bottling partners -- more than 300
worldwide.

While many view our Company as simply "Coca-Cola," our system operates through multiple
local channels. Our Company manufactures and sells concentrates, beverage bases and syrups to
bottling operations, owns the brands and is responsible for consumer brand marketing initiatives.
Our bottling partners manufacture, package, merchandise and distribute the final branded
beverages to our customers and vending partners, who then sell our products to consumers.

All bottling partners work closely with customers -- grocery stores, restaurants, street vendors,
convenience stores, movie theaters and amusement parks, among many others -- to execute
localized strategies developed in partnership with our Company. Customers then sell our
products to consumers at a rate of 1.5 billion servings a day.

Coca-Cola Systemwide Performance

In April 2007, associates from The Coca-Cola Company and several of our largest bottling
partners met for the first time to discuss the development of a core set of performance indicators
for the Coca-Cola system. Working groups of Company associates and representatives from our
bottling partners have been formed to determine the feasibility -- due to the legal and
management complexity of the Coca-Cola system -- of collecting and consolidating economic
and social data in addition to the environmental data already collected. Many of our bottling
partners produce their own corporate responsibility reports which can be viewed in the Bottling
Partner Reports section.
Awards-

Golden Peacock National Quality Award 2004

Coca-Cola India Division President, Mr. Sanjiv Gupta (seen top, extreme right in the
photograph) receiving the Golden Peacock National Quality Award 2004 along with the Coca-
Cola team at the 15th World congress on Total Quality in Mumbai on January 14, 2005

Hindustan Coca-Cola Beverages Private Limited, Dasna unit, bags the

"Golden Peacock Environment Management Award 2004"

The Dasna unit near Delhi in Ghaziabad has been awarded the prestigious "Golden Peacock
Environment Management Award - 2004 (GPEMA- 2004)" for excellent environment practices
and effective control of environmental impact.
The Dasna unit won this award in the Food & Beverage Industry category for its environment
practices among hundreds of entries received from across the country. The annual award winner
is decided on the basis of a rigorous assessment procedure, which includes a visit to the facility
by a team of experts.

Speaking on the occasion, Mr. Sanjiv Gupta, Division President and CEO, Coca-Cola India said,
"We are proud to win this coveted award. At Coca-Cola we are committed to preserve, protect
and enhance the environment and this simple belief guides us in everything that we do. We will
continue to further improve our systems and are confident of making a significant positive
impact on our environment in times to come."

The award will be formally presented to the company shortly by Institute of Directors, an
independent body that recognizes the achievements of manufacturing units under the categories
of Environment, Quality and Corporate Governance, in association with World Environment
Foundation (WEF), at an official function during the 6th World Congress on Environment
Management.

All India Division COBO's are now ISO 14001 certified

All 25 of the India Division's Company-owned bottling plants have gained the international
standard ISO 14001 Environment Management System certificate.

The ISO 14001 certificate is the internationally recognized standard of Environmental

Management.

A company must demonstrate management commitment, the total involvement of all employees
and a compliance with applicable regulatory and internal company standards.

The Company started its compliance effort in February, 2002 and the Bidadi plant near
Bangalore in the southern State of Karnataka was the first plant to receive this prestigious

accreditation in January 2003.

Strict division compliance with the eKO system ensured that the bottling plants were ready to
meet the tough evaluation criteria and standards of the ISO auditors.

After only 15 months, when certifying agency Det Norske Veritas completed its audit and
granted the ISO certification to the Patna plant in eastern State of Bihar, every plant in the
Company owned bottling system held the coveted certificate.

"We have been able to achieve this due the unwavering commitment and belief demonstrated by
all our associates in protecting, preserving and enhancing the environment," says India Division

President Sanjiv Gupta.

BUSINESS PARTNERS REJOICE WITH Coca-Cola AWARDS

Coca-Cola India's business partners, vendors and key account outlets joined together to release
advertisements in leading English and local language newspapers in Hyderabad city
complimenting the company for winning the Golden Peacock National Quality Award 2004 that
was won by the Ameenpur bottling unit near the city in the southern state of Andhra Pradesh.
The company-owned bottling unit is the only plant in food & beverages category from amongst
176 entries across the country this year. The annual award is presented by Institute of Directors,
an independent body that promotes quality and Corporate Governance. While one ad
congratulated the Company and celebrated the accomplishment, the other, quite simply, raised a
toast to this achievement. The initiative is a strong reflection of the business partners' pride in
associating with Coca-Cola operations.

Founded 1892
Headquarters Atlanta, Georgia, United States
Area served Worldwide
Key people Muhtar Kent
(Chairman and CEO)
Industry Beverage
Products Coca-Cola
Carbonated Soft Drinks Water
Other Non-alcoholic beverages
Revenue ▲ US$ 31.944 billion (2008)
▲ US$ 8.446 billion (2008)
Net income ▲ US$ 5.807 billion (2008)
Total assets ▲ US$ 40.51 billion (2008)
Total equity ▲ US$ 20.472 billion (2008)
Employees 92,400 (October 2009)
Website The Coca-Cola Company Corporate Website

Local competitors
Pepsi is usually second to Coke in sales, but outsells Coca-Cola in some markets. Around the
world, some local brands compete with Coke. In South and Central America Kola Real, known
as Big Cola in Mexico, is a fast-growing competitor to Coca-Cola. On the French island of
Corsica, Corsica Cola, made by brewers of the local Pietra beer, is a growing competitor to
Coca-Cola. In the French region of Bretagne, Breizh Cola is available. In Peru, Inca Kola
outsells Coca-Cola, which lead The Coca-Cola Company to purchase the brand in 1999. In
Sweden, Julmust outsells Coca-Cola during the Christmas season. In Scotland, the locally-
produced Irn-Bru was more popular than Coca-Cola until 2005, when Coca-Cola and Diet Coke
began to outpace its sales. In India, Coca-Cola ranked third behind the leader, Pepsi-Cola, and
local drink Thums Up. The Coca-Cola Company purchased Thums Up in 1993. [ As of 2004,
Coca-Cola held a 60.9% market-share in India. Tropicola, a domestic drink, is served in Cuba
instead of Coca-Cola, due to a United States embargo. French brand Mecca Cola and British
brand Qibla Cola, popular in the Middle East, are competitors to Coca-Cola. In Turkey, Cola
Turka is a major competitor to Coca-Cola. In Iran and many countries of Middle East, Zam Zam
Cola and Parsi Cola are major competitors to Coca-Cola. In some parts of China Future cola is a
competitor. In Slovenia, the locally-produced Cockta is a major competitor to Coca-Cola, as is
the inexpensive Mercator Cola, which is sold only in the country's biggest supermarket chain,
Mercator. In Israel, RC Cola is an inexpensive competitor. Classiko Cola, made by Tiko Group,
the largest manufacturing company in Madagascar , is a serious competitor to Coca-Cola in
many regions. Laranjada is the top-selling soft drink on the Portuguese island of Madeira. Coca-
Cola has stated that Pepsi was not its main rival in the UK, but rather Robinsons drinks.