Coca-Cola - The History

The soft drink idea started in Atlanta in 1886, when Dr John Stith Pemberton was forced, due to

a new prohibition law, to find a new product to replace his nerve tonic, stimulant and headache

remedy, Pemberton's French Wine Coca. He had to remove the wine from the formula, and he

replaced it with sugar. The new formula still contained cocaine derived from Erythroxylon coca,

and kola (Cola acuminata) nut extract. Both these substances are stimulants and have definite

actions on the central nervous system. Basically, in combination they would induce a feeling of

well-being, reduce tiredness and depression, and increase the capacity to work. The new name

'Coca-Cola' was suggested by Pemberton's bookkeeper Frank Robinson.

The local pharmacy, Jacob's Pharmacy, started to supply the new recipe in their soda fountain on

8 May, 1886. That particular pharmacist realised that there were a lot of very thirsty miners

nearby who could not pop into town every time they wanted to quench their thirsts. By bottling

the drink, and hauling it to the customers, he simultaneously created a new bottling industry and

advanced the concept of user-based placement for products. If not for him, it would not have

come close to hitting the same early level of popularity, as the range of sales would have been

limited.

Just prior to his death in 1888, Pemberton sold the rights to Coca-Cola to Asa Candler. It cost

Candler $2300 and took him three years to gain sole ownership of Coca-Cola, by buying out the

minor shareholders. At the turn of the 20th Century, Coca-Cola was marketed as a beverage to

aid digestion.

The use of drugs such as cocaine and heroin for both medical, commercial and recreational use

was much more prevalent in the 19th Century than might be expected. They only became illegal

drugs in fairly recent times, due to political and economic pressure, largely from the US. As

more was learned about cocaine, the Coca-Cola Company gradually reduced the amount of it in

their product. For a while, the company were afraid that if they dropped the cocaine entirely, it

would affect their trademark - and so for the bulk of the time that Coca-Cola had any cocaine in

it, it was only trace amounts, not enough to have any active effect. By 1902 the cocaine content

was as little as 1/400 of a grain of cocaine per ounce of syrup (Coca-Cola became completely

cocaine-free in 1929).

In 1916 the famous curvy bottle was introduced, and the shape of it is patented. In 1919 the

Coca-Cola Company was sold to an Atlantan banker named Ernest Woodruff for $25m. The

company then pioneered the six-bottle carton. In 1955, Coca-Cola was canned and shipped to

Japan and other Pacific regions for consumption by the US military.

Nowadays Coca-Cola is sold worldwide, and more than 70% of the company's income comes

from outside the US. The regular version outsells the 'diet' varieties by two-to-one. The original

bottles are much in demand as collector's items, and there is a homage to all things coke-related

at the Coca-Cola Museum in Atlanta, GA.

India is home to one of the most ancient cultures in the world dating back over 5000

years .At the beginning of the twenty-first century, twenty-six different languages were spoken

across India, 30% of the population knew English, and greater than 40% were illiterate. At this

time, the nation was in the midst of great transition and the dichotomy between the old India and

the new was stark. Remnants of the caste system existed alongside the world’s top engineering

schools and growing metropolises as the historically agricultural economy shifted into the

services sector. In the process, India had created the world’s largest middleclass, second only to

China.

A British colony since 1769 when the East India Company gained control of all European

trade in the nation, India gained its independence in 1947 under Mahatma Gandhi and his

principles of non-violence and self-reliance. In the decades that followed, self-reliance was taken

to the extreme as many Indians believed that economic independence was necessary to be truly

independent. As a result, the economy was increasingly regulated and many sectors were

restricted to the public sector. This movement reached its peak in 1977 when the Janta party

government came to power and Coca-Cola was thrown out of the country. In 1991, the first

generation of economic reforms was introduced and liberalization began.

Coke in India

Coca-Cola was the leading soft drink brand in India until 1977 when it left rather than

reveals its formula to the government and reduce its equity stake as required under the Foreign

Exchange Regulation Act (FERA) which governed the operations of foreign companies.

In India. After a 16-year absence, Coca-Cola returned to India in 1993, cementing its

presence with a deal that gave Coca-Cola ownership of the nation's top soft-drink brands and

bottling network. Coke’s acquisition of local popular Indian brands including Thums Up the

most trusted brand in India, Limca, Maaza, Citra and Gold Spot provided not only physical

manufacturing, bottling, and distribution assets but also strong consumer preference. This

combination of local and global brands enabled Coca-Cola to exploit the benefits of global

branding and global trends in tastes while also tapping into traditional domestic markets .Leading

Indian brands joined the Company's international family of brands, including Coca-Cola, diet

Coke, Sprite and Fanta, plus the Schweppes product range. In 2000, the company launched the

Kinley water brand and in 2001, Shock energy drink and the powdered concentrate Sunfill hit the

market.

From 1993 to 2003, Coca-Cola invested more than US$1 billion in India, making it one

ofthe country’s top international investors.22 by 2003, Coca-Cola India had won the prestigious

Woodruff Cup from among 22 divisions of the Company based on three broad parameters of

volume, profitability, and quality. Coca-Cola India achieved 39% volume growth in 2002 while

the industry grew 23% nationally and the Company reached breakeven profitability in the region

for the first time.23 Encouraged by its 2002 performance, Coca-Cola India announced plans to

double its capacity at an investment of $125 million (Rs. 750 crore) between September 2002

and March 2003.24 Coca-Cola India produced its beverages with 7,000 local employees at its

twenty-seven wholly-owned bottling operations supplemented by seventeen franchisee-owned

bottling operations and a network of twenty-nine contract-packers to manufacture a range of

products for the company. The complete manufacturing process had a documented quality

control and assurance program including over 400 tests performed throughout the process.

The complexity of the consumer soft drink market demanded a distribution process to

support 700,000 retail outlets serviced by a fleet that includes 10-ton trucks, open-bay three

wheelers, and trademarked tricycles and pushcarts that were used to navigate the narrow alley

ways of the cities.25 In addition to its own employees, Coke indirectly created employment for

another 125,000 Indians through its procurement, supply, and distribution networks. Sanjiv

Gupta, President and CEO of Coca-Cola India, joined Coke in 1997 as Vice President,

Marketing and was instrumental to the company’s success in developing a brand relevant to the

Indian consumer and in tapping India’s vast rural market potential. Following his marketing

responsibilities, Gupta served as Head of Operations for Company-owned bottling operations

and then as Deputy President. Seen as the driving force behind recent successful forays into

packaged drinking water, powdered drinks, and ready-to-serve tea and coffe ,Gupta and his

marketing prowess were critical to the continued growth of the considered products only for the

affluent, by 2003 91% of sales weremade to the lower, middle and upper

Vision

To achieve sustainable growth, we have established a vision with clear goals.

Profit: Maximizing return to shareowners while being mindful of our overall

responsibilities.

People: Being a great place to work where people are inspired to be the best they can be.

Portfolio: Bringing to the world a portfolio of beverage brands that anticipate and satisfy

peoples’ desires and needs.

Partners: Nurturing a winning network of partners and building mutual loyalty.

Planet: Being a responsible global citizen that makes a difference.

Company background

The manufacturing unit of Hindustan Coca-Cola Beverages (P)Ltd.Pune is located at

scenic and peaceful environs of village Pirangut,Taluka Mulshi and Dist,Pune,just 18-20 Km

from pune city.The plant commenced operation in January 1996.Spread over 25 acres,the

pirangut plant is the only plant with canning facility for Coca-cola and production of Diet coke in

India.The main business of the company is to produce and distribute the products of the Coca-

cola Company.The brands being currently produced are Coca-Cola,Thums

Up,Limca,fanta,Sprite,Diet Coke and Kinley Soda.

The main manufacturing unit has 208 permanent employees and there are 54 number

employed in sales and there 54 number employed in sales and marketing.The production facility

of pune plant is capable of producing

RGB:-36000 cases/day,

PET:-12000 cases/day,

CAN:-66000 cases/day.

The sales territory of HCCBPL, location is at south Maharashtra state extending from

Riagrah to Nanded and Pune to Sindadurg.The manufacturing site is located on area of around

115342 m2, and has two number of filling lines for manufacture of RGB,PET,and CAN.This

Quality System relates to the full range company activities as determined by the standards

described in TCCQS.

Plant Area

Total area :23.55 acres

Built-up area :9.275 acres

Green belt :10.54 acres

Undeveloped :3.9 acres

Production Line

Line I-KRONES-Germany-commissioned on March 97

Line II-SIG SIMONAZZI-Italy- commissioned on April 03

Line III-SASIB-Italy-commissioned on April 98

Before taking up the study of the various plant operations in detail we identify the

operations required in a bottling plant and devise a flowchart. the flow chart gives an overview

of the beverages manufacturing process.

OVERVIEW OF THE BEVERAGE MANUFACTURING PROCESS-

All the plant operations can be broadly classified in to four main areas namely

(i) Warehouse

(ii) Production

(iii) Process

(iv) Utilities

Apart from these,the general functions such as HR,Finance,Sales,Etc.exist in coordination

with them.We begin examining the plnt layout at the storage area.

Warehouse

In a bottling plant a warehouse is used to store both empty and bottles.the warehouse to store

both empty and filled bottles.The warehouse is generally located adjacent to the production

line to minimize materials handling. The demand analysis carried out by the sales department

acts as an input to the shipping department. They in turn estimate the volume of production

based on the number of empty and filled bottles.The empty bottles in the warehouse are

sorted according to pack and flavor and sent for filling.

Depalletising

After sorting the cases of empties are placed on a conveyor.Placing case on the conveyor

may be done manually or with the aid of depalletizer(here done manually).

Uncasing

The bottles are then for inspection.This also can be done manually but here an uncaser is

incorporated.

Emty returns are inspected for broken and chipped areas and for excessively dirty are

washed.

Bottle Washer

The washer is the largest single piece of equipment on the bottling line.In most

plants,washer is located spaciously to ensure easy acess to all sides of the washer.Here

bottles are washed,rinsed and drained .

Empty Bottle Inspetion

The bottles are once again inspected after they are washed and before they are sent

for filling

Filler

This is the heart of the production line and here the beverage is filled at rate of 600

BPM(bottle per minute).

Beverage is the final product made from the rw materials through a series of processes.The

general procedure is

Raw syrupàReady syrupàBeverage

Raw syrup

Raw syrup is prepared by adding raw materials such as sugar,treated water and activated

carbon.In this process the mixture is heated to about 85*C

Ready syrup

Raw syrup is pumped to the tanks in the ready syrup room after the syrup is cooled to about

20*-25*C.Here the concentrated or the beverage base is added to it.A small amount of Co2 is

also added to avoid stagnation of the ready syrup in the supply lines.

The concentrate and beverage bases mentioned here are manufactured by the Coca-

Cola company.Concentrate imparts the distinctive taste and colour to the product.

Coca-cola and beverages bases provide the same to the other soft drink products of the Coca-

cola Company.

Mixer

The ready syrup from the ready syrup room is pumped to the mixer where it is mixed with

Co2 and water according to the prefixed requirements.These values remain university

constant.The mixture now is known as the beverage.

Carbonation tank

The finl beverage is then chilled or cooled as it is observed that the solubility of Co2 is

higher at lower temperatures. This mixture is sent to the carbonation tank.

Crowning

The bottles that are filled with the beverage in the filler are crowned in this process.

Date coding

The date of manufacture, time and MRP are printed on the bottle by using the coding machine.

CIP (Cleaning In Place)

A Clean In Place (CIP) system is most common way to clean closed systems of pipe line as

well as pieces of equipment.This is mainly needed at the sypur rooms and filling equipment such

as filter, fillling equipment such as filler, cooling equipment, carbonation equipment, lines, etc.

In addition to above some other utilities also contribute to the beverage manufacturing

process.Some of them are forklifts, transformer etc. Filled Bottle Inspection The filled bottles are

once again inspected finally for the the level of fill and coding.

Caser

Cases which are obtained by the empty bottles are sent to the cleaner where they are

cleaned .The caser now packs the filledbottles into the cases.

Palletising

The cases are now placed on a conveyor by either using a palletiser or manually.(here done

manually)and sent to the ware house .

Warehouse

The filled bottle cases are stored in the ware house and are further sent for distribution.

Quality Lab.

The beverage so produced should match some prefixed standards.In order to test the quality

of the beverage manufactured,regular sampling and testing is done.The quality lab is placed near

the production line to make sampling convenient.

Boiler

It is a part of the plant utilities which supplies steam to various part of the pkant such as raw

syrup room,bottle washer ,CIP,etc.

Chilling Plant

This provides all the refrigeration required in the plant mainly for cooling the beverage,raw

syrup etc.

Air Compressor

This system provides compressed air for all the pneumatic needs of the plant and it is piped

to the bottling room.

WTP(Water Treatment Plant)

Water is required at many stages in the plant operations.In the beverage manufacturing

process we make use of treated water.This is manufactured by systemized water treatment

thechniques.In addition to this soft water is supplied for the sanitation,biler etc.

Golden Peacock Environment Management Award 2005 (GPEMA) to the Coca-Cola

bottling plant at Kaladera, near Jaipur, in recognition of its world-class environment practices.

Coca-Cola Indias ultra-modern ISO 14001 certified bottling plant in the State won this top award

in the medium scale Food & Beverage category from amongst more than 17 entries. The

Kaladera unit is the fourth plant to get this distinction in the Coca-Cola India

ETP(Effluent Treatment Plant)

An effluent treatment plant in the plant premises treats the waste water coming from various

parts of the plant such as bottle washer,Syrup room,WTP etc before it is released in to

environment.

At The Coca-Cola Company, we aspire to environmental excellence every day through

each business decision and process everywhere we operate around the globe.

Our commitment is not just good citizenship; it’s good business. The bottom line is that our

business depends on the health and sustainability of our planet and the natural resources. .

As a beverage company, we focus our environmental efforts on the three areas where we have

the greatest impact, and therefore can do the most good: water use; packaging; and energy use &

climate protection.

To help align our actions with our aspirations, we have developed a number of specific initiatives

and programs to address these core issues in sustainable, measurable ways.

1.4.PRODUCT PROFILE

Brands of coca cola company

There are nine brands in the coca cola company these are as follows

1)Coca cola

2)ThumsUp

3)Fanta

4)Limca

5)Sprite

6)Maaza

7)Georgia

8)Minute maid

9)Kinley

10)Diet coke