2005 Schedule
August 29-31
Joint Meeting of CDESC and OPCC
South Beach, FL
September 12-13
CCBA Annual Meeting
Atlanta, GA
September 14-15
CCNA Bottler Meeting
Atlanta, GA
October 3-5
Risk Management/
CCSF Board of Directors: Don Knauss, Hager Rand, Ron Wilson, Sandy Williams, Ingrid Saunders Jones, Financial Management Forum
Claude Neilsen, Jack Pelo and Dan Markle
Las Vegas, NV
2005 scholars connect in atlanta October 20-21
Board of Governors
Carefree, AZ
W
ith “Forever Connected” as the theme, 251 Coca-Cola Scholars gathered in
Atlanta for the annual banquet celebrating the achievements and dreams of
these exceptional high school seniors. The theme represents the essence of the ISSUE NO. 300
scholars program, where scholars will now be forever connected to an AUGUST 2005
extended family of supporters and lifelong friends who will share in
the commitment to education and service. Dr. Carson meets the Scholars
All in attendance were treated to one of the most inspiring speakers
to ever address the Coca-Cola Scholars’ banquet. Dr. Benjamin Carson,
Director of Pediatric Neurosurgery and a professor of neuro surgery
at Johns Hopkins Medical Institution, regaled the crowd with his
inspiring story of determination and success. With humor and directness,
Dr. Carson told how he grew up in a single parent home with dire
poverty, a hot temper and low self-esteem in the slums of Detroit, and
against all odds, realized his dreams. He imparted the life lessons he
learned the hard way to the scholars, encouraging them to take advantage
of given opportunities and to always give back to the people and
community that have given so much to you. tling Line • The Bottling Line • The Bottling Line • The Bot
ng Line • The Bottling Line • The Bottling Line • The Bottling Line •
Continued on page 2 ng Line • The Bottling Line • The Bottling Line • The Bottling Line • The Bott
ng Line • The Bottling Line • The Bottling Line • The Bottling Line • The Bottling Line •
• The Bottling Line • The Bottling Line• The Bottling Line • The Bottling Line • The Bottling Line • The Bott
2005 scholars connect in atlanta (continued)
As in the past, this group of some of
the country’s best and brightest came to
Atlanta for a weekend of fellowship,
interviews and service. Each scholar
competed for one of the fifty $20,000
national scholarships, 200 regional
scholarships for $4,000 and a senior
electing to attend Emory University, a
$20,000 scholarship. A National Selection
Committee, comprised of educators,
business and government leaders and
past scholars from across the country,
were selected to interview and evaluate Scholars at the Gems and Jewels Teen Center. Neville Isdell, Sandy Williams
and Mark Davis
each scholar. The evaluations were based
on academics, school and community
leadership and their desire to succeed.
Dr. Carson
The weekend also afforded the scholars
the opportunity to display their commit-
ment to civic duty, as the students
participated in the landscaping, painting
and general clean-up of the Gems and
Jewels Center, an Atlanta teen center
serving inner-city youth. The scholars’
hard work was rewarded with tours of
CNN, the Martin Luther King Jr. Center
and the World of Coca-Cola.
Even the best and brightest need
guidance, direction and nurturing. To
recognize the impact of educators, each
of the scholars selected a favorite teacher
that provided such guidance to receive
“The Coca-Cola Educator of Distinction
Award.” Each Educator of Distinction
received a commemorative crystal gift
and a plaque inscribed with a personal
dedication written by the 2005 scholar
who nominated the teacher.
The 2005 Coca-Cola Scholars
Foundation banquet brought together
some of the country’s finest seniors to
celebrate their achievements and dedica-
tion. There can be no doubt that with
the inspiring words of Dr. Carson
implanted in their minds, another group
of students will be “forever connected”
with each other and their extended
Coca-Cola family of supporters.
2
2 The Coca-Cola Bottlers’ Association
National Selection Committee Members: United Coca-Cola: standing (l to r): Brent Mizell, Margaret Hughes, Amber Jackson,
Jay Hakers and Cecile Waronker Claude Neilsen, Ashley Phares and Paul Wood; seated (l to r): Kendall Lemelle,
Walker Jones, Raimy Living and Mario Navarro
Scholars enjoy a visit to World of Coca-Cola Scholar Alumni Katina Tsagaris, Kolade Apata
and Gabriella Maris
Sandy Williams and Tom Haynes
Crown Holdings, Inc (sponsor): standing (l to r): Bill Hovis, Megan Guerra,
Marc Kreps, Bronwyn Jones, John Conway and Dr. Angelo Volandes;
seated: Edward Chen, Bob Truitt, Tom Fischer and Sarah Catanzaro The Coca-Cola Bottlers’ Association 3
3
CCBA welcomes Effective merchandising
Alane Lintner
Another in a series of useful articles
The Association Staff is from Max Storts, CCBA Manager,
pleased to introduce you Distribution and Logistics
to Alane Lintner as its
There are several steps to achieve effective merchandising.
Accounting Manager. Alane Here are some of those steps to start you on your way to
began her work with CCBA better managing your Merchandisers.
on May 2, 2005, succeeding Use a planning tool to help plan your resources.
Flora Eatman. Planning tools are available or you can develop your own. The important thing is to
have a tool that allows you schedule flexibility and to see what your manpower needs
Alane comes to CCBA from her
are. This allows you to better service your customers and to show them that you are a
former position as Director of Finance partner to their business. In most cases the better your service the better the relationship
of the Junior League of Atlanta. Alane is with that customer. The better the relationship the more opportunity for shelf space
has been a Georgia resident for some and ad activity you will have.
six and one-half years, having come Establish specific daily routes the merchandisers are to follow.
here from her native Illinois where her This allows you to track the movements and the accounts that are being serviced. It also
three sisters, one brother and parents will allow you to increase the service needed during higher volume weeks. This also will
still live. Alane graduated from St. Louis
allow you to manage frequencies of your accounts.
University with a B.S. in business Base work schedules on the volume and ad activity for that week.
administration and a major in accounting.
During normal volume weeks this allows you to manage your resources and control
your costs. You can also move your resources around to cover vacations and other
She expresses to all that she is delighted
unforeseen opportunities.
to be a part of the CCBA team.
Remember that accountability of the merchandisers is critical to your success.
Alane’s telephone number is
Knowing what your merchandisers are doing and what their capabilities are will allow
678.539.2310, and her email address you to reduce over time and develop the employee for the future. This will also help in
is alintner@ccbanet.com. assigning specific job tasks for specific merchandisers.
If you have questions, comments or requests for information or support in distribution or
logistics, please contact Max Storts at 678.539.2327 or 419.679.6453.
Nashville, Arkansas
& Idabel, Oklahoma Save the Date October 3–5, 2005
fill the Dr.’s The 2005 Combined Risk Management Seminar and Financial
Prescription Forum will be held October 3 –5, in Las Vegas, at the Mirage Hotel. The agenda is
shaping up to be educational and inspirational, and we encourage you to set aside
For the seventh consecutive year,
those days to join your colleagues and your Association Staff for an opportunity to
the Coca-Cola Bottling Company of
learn, interact and stay current on business and legal trends.
Nashville, Arkansas had the highest
bottle/can sales per capita for a
Dr Pepper franchise in the U.S. If that
weren’t enough, Idabel, Oklahoma Want to improve your bottom line?
came in second after many years of
being in the top five! As Nashville’s Understand better contribution by product/package size
Kenneth Wilson so aptly put it, CCBA has developed and is currently testing a program to make Margin Minder
“two Coke Bottlers are showing the available and affordable for all Association members through an ASP model. Margin
Dr Pepper people how to get it done!” Minder is the industry’s leading sales and trade spend management solution. Information
Congratulations to both Kenneth and and presentations will be available at the annual meeting in September in Atlanta. In
Idabel’s Ed Fulmer for jobs well done. the meantime, if you’d like more information about this new benefit, please contact
Ann Burton at 678-539-2302.
4 The Coca-Cola Bottlers’ Association
CCBA bids a fond farewell CCBA’s 401K
Conversion
to Jimmy Mcleod Update
A
fter 26 years of service to the Bottlers’ Association and the Bottling In our last publication we talked
community, Claims Manager Jimmy McLeod has decided to take a stab about our upcoming 401K conversion
at managing retirement. from Amvescap to Wells Fargo.
Well, it went off with only a few minor
Monetary claims against Bottlers are very serious situations which require oversight glitches and our projected live date of
and handling by a certain personality type. The position of claims manager suited June 20, 2005 was right on schedule.
Jimmy’s personality to a tee. His combination of tight fisted frugality by nature and Thank-you to Wells Fargo and Wendy
Southern Gentleman by heart, ensured that Bottlers would never pay unnecessary Holland our Retirement Manager for
all of their hard work.
claims. More often than not, the claimants left feeling good that they brought the
The Wells Fargo platform provides a
situation to someone’s attention, even if they didn’t receive any money! If you aren’t
competitive program for the Bottler’s and
from this neck of the woods, a Southern Gentleman is a class individual who was their employees at a very reasonable cost.
raised right, rarely speaks ill of someone else (unless it’s followed by… bless their From an employees standpoint, the
heart... ), is quick with a good story or retort, but most of all, is a man of high program offers a wide range of reporting,
retirement planning, managed investment
standards and integrity. Jimmy is a true Southern Gentleman and will be missed strategies and tools which can help your
at the Association. employees understand the importance of
Jimmy’s immediate plans include spending more time with his family and riding investing for their future retirement. In
addition, if you offer other retirement
his tractor at his farm. Luckily, he will also be working part-time consulting with programs for your employees, Wells Fargo
Crawford and Company to ensure that cases he had worked at the Association come to has the flexibility to offer each Bottler a
a satisfactory end and that the adjusters in Crawford and Company’s dedicated unit are total retirement solution. This provides you
and participants the same reporting, one
trained properly on handling any new claims.
Benefits Helpline number and one Website
So, if you’re ever traveling between Alabama and Georgia and see a man on a to obtain all of your retirement information.
tractor grinning from ear to ear, that would be Jimmy…give him a wave and tell This can also help the Bottler in soliciting
new membership in the 401K program.
him we said hey and that we miss him!
From the Bottler’s standpoint, this program
is designed to protect the Bottler as much
as possible against the fiduciary risks that
are out there today. As we all know in
today’s environment it is important to have
the proper procedures in place to eliminate
any un-necessary risk, therefore we have
worked with Wells Fargo to develop a plan
document, investment policy and invest-
ment strategy to help minimize this risk.
The Association provides a program that is
affordable to any size Bottler and provides
the services that usually only the larger
401K programs can afford.
Please call Wendy Holland at 678-539-2316
or Ann Burton at 678-539-2302 if you
have any questions or would like to get
left to right: Son-in-law Josh Gibson, daughter more information regarding CCBA’s program.
Marcie Gibson, son Greg, wife Angie, Jimmy, son Jeff If you currently do not have a 401K program
for your employees —we can help you get
one started. If you are not a member of the
Associations 401(k) program and would
like to compare your current 401(k)
left to right: Rachel Remenih,
providers pricing against CCBA’s pricing,
Dan Gundaker, Jimmy,
please contact us. These types of benefits
Kem Pearce
for your employees will improve morale
while helping them save for their future
retirement. As we all know, a happy
employee makes a better employee.
The Association will present any updates at
left to right: Gerard Imlay, the Risk Management meeting.
Jimmy, Tom Haynes,
Charles Norton,
Ann Burton The Coca-Cola Bottlers’ Association 5
History of The Coca-Cola Bottler’s Association
An article in the April 1959 issue of The Coca-Cola Bottler, entitled History of
The Coca-Cola Bottlers’ Association, chronicled the first 45 years of the Association.
The following is a retrospective of the 46 years that have followed, detailed in
a series of interviews beginning with John S. Knox whose career with the
Association spanned four decades. Future editions will continue the story.
T
he year was 1952. Under the Shortly after World War II, Congress representative of the Association for many
campaign slogan “I Like Ike,” enacted a law which gave each state the years, conducting business from his law
General Dwight D. Eisenhower right to regulate insurance within its offices in the Candler building in Atlanta.
helped the Republicans take control of borders. This prompted large insurance “I think it’s interesting,” recalls Knox,
the White House for the first time in 20 carriers like the Hartford, the Association’s “that the main building at the University
years. At the summer Olympics in insurer, not to renew coverage like the of Georgia Law School in Athens is
Helsinki, the U.S. won 40 gold medals Association’s which crossed state lines. named Harold Hirsch Hall. I studied law
and finished first in team standings. An Atlanta insurance agent who handled in that building sitting underneath a big
The U.S. experienced its first major The Coca-Cola Company’s business portrait of him.”
bout with inflation. I Love Lucy was somehow arranged to notify the Bottlers Hirsch resigned as the Association’s
America’s favorite TV show and the that henceforth his agency would be legal representative in the early twenties
most popular movie was The Greatest handling the Bottlers’ Products Liability because of a potential conflict of interest
Show on Earth. And, in the first TV Insurance and not the Association. To its resulting from the contract litigation.
“closed circuit” event held in U.S. credit, the Association, with the help of Ralph B. Beach of Pennsylvania became
theaters, Rocky Marciano won the Marsh & McLennan, quickly moved its the Association’s first paid Secretary in
heavyweight boxing championship. coverage to Lloyds of London in 1949. 1924. Offices were later moved to the
In that same year, a young lawyer Knox later developed a long-time close, Mortgage Guarantee building and later
named John S. Knox walked through personal relationship with the lead Lloyds to the Buckhead Theatre building, and
the doors of The Coca-Cola Bottlers’ underwriter on the account, the colorful finally to a small storefront located at
Association. A World War II Navy veteran, Mr. Ralph Rokely-Johnson. This helped 18 Rhodes Center on Peachtree Street.
Knox would find himself involved in to get the Association through some rough Under the leadership of Willie Barron,
many a “boxing match” throughout his times. The Association lost only a few Beach, and Knox, land was purchased in
career, though of a much different nature Bottlers to the competitive Atlanta agent. early 1955 and the Association moved
than those of Marciano. Serving the “When I got the call from Henry,” says into its own office building at 166 –
Association first as an attorney and then Knox, “his firm had been hired to set up 16th Street on May 31 of that year.
as Executive Director from 1964 until his some claims procedures for Lloyds which Throughout his career, Knox would play
retirement, Knox recently gave his was taking over the Products Liability a major role in the expansion and
account of the most significant events Insurance for the Association. For some renovation of that building.
that occurred during his nearly 34-year reason his firm couldn’t continue “One of my first jobs with the
career with the Association. representing the Association, so the Association was to set up defenses and
“Seems like yesterday,” the Atlanta Association was looking to hire a lawyer. handle all the product liability claims and
native says when asked if he remembers Henry asked if I would be interested.” lawsuits against the Bottlers for various
the circumstances under which he came Protecting Members’ products from things allegedly found in bottles, bottle
to the Association. “Having graduated fraudulent liability claims was one of the breakage, caps popping off, that sort of
from the University of Georgia School of initial reasons for establishing The thing,” Knox recalls. “We were just inun-
Law in 1949, I had been practicing law Coca-Cola Bottlers’ Association in 1914. dated by claims, and product settlements
trying to earn a living for my growing At that time, a group of 25 Coca-Cola only bred more of them. It was hard, but
family when out of the blue I got a call Bottlers got things started when they I had to convince Lloyds of London that
from Henry Troutman, a lawyer from gathered in the office of Harold Hirsch, even though it cost thousands of dollars
Troutman, Sams and Schroeder, who had general counsel of The Coca-Cola to defend cases that we could settle for a
attended law school with me.” Company. Hirsch served as legal few bucks, we had to defend them
6 The Coca-Cola Bottlers’ Association
anyway to protect the integrity of the altered the face of rock music. The world time in the history of the Association.
product. We had to educate the plaintiffs’ was changing and the Coca-Cola bottling This continued throughout Knox’s watch.
bar that they could not make any money system would prove to be no exception. Other changes followed. On April 22,
on these types of cases. In addition to packaging innovations 1964, Association president Richard P.
“We concentrated on insurance and and new products, Knox recalls seeing a Ellwein received the charter from Knox
safety programs, and other things that major change in the size of original for a new subsidiary corporation called
were kind of on the periphery of what territories. “The size of the territory you Association Services, Inc. “We started a
I call the ‘core business,’” Knox says. served used to be decided by how far a purchasing program so that Bottlers
“Frankly, I was a little disappointed with mule could get out and deliver and come would have the benefit of mass purchasing
my initial responsibilities with the back in the same day. Some territories of many items,” Knox says. “Other forms
Association because I thought I’d be were very odd-shaped because they of insurance were also offered later,
doing more stuff in the main part of followed the population tracks,” he says. including the full spectrum of property
the business.” “Some others were just described as a certain and casualty as well as pension plans.”
“I guess the first real substantive thing size circle around the center of town. In June 1964, Knox started the
that came along was that I did a lot of “Another interesting thing,” Knox Association’s newsletter, The Bottling
traveling to see Bottlers,” says Knox. recalls, “was that some Bottlers claimed Line. “It’s basic purpose,” wrote Knox in
“That was hard because there were the biggest competition for Coca-Cola that first issue, “is to provide a vehicle of
hundreds of them. We traveled mostly did not come from other bottled products. communication to the members on matters
by train to conventions and mostly by It was from watermelon! When the relating to management and Association
automobile to visit Bottlers in little towns watermelon crop came in, everybody activities. This is most important at the
like Elberton, Georgia. The hotels would would turn to that for refreshment. This present time with the revitalization of the
provide one lamp with a 40-watt bulb so was an exaggeration, but there was some Association under way. These are times
I had to carry a 100-watt bulb with me truth in it.” of dynamic and dramatic changes in the
to provide enough light to see.” In 1964, Bob Dylan released his song, Association, as well as in our industry.
Board meetings would last three days “The Times They are a-Changin’, and he The Association will meet the challenge,
and Knox recalls sitting around and could easily have been referring to and hopefully, The Bottling Line will
talking to Bottlers during all that time. The Coca-Cola Bottlers’ Association. play an important role.”
“Needless to say,” he reports, “I learned a It proved to be a year of major change, With the expansion of Association
lot from those marathon discussions spearheaded by John Knox, who in that functions and increasing activity of
between old-time Bottlers.” year succeeded Ralph Beach as Association Association Services, additional space was
The 1950s and ’60s brought a Secretary. The Association’s bylaws were needed in the headquarters building. On
proliferation of products, packages and revised to provide a new method of electing May 24, 1965, a new addition and com-
sizes. “When I came to the Association, members to the Board of Governors by a plete renovation of the existing building
Bottlers packaged only the 6.5 ounce secret ballot handled by mail. The country began which tripled the space of the
contour returnable bottle and many was divided into ten geographical districts former building. Considered a highlight
Bottlers offered a case of 24 for 80 cents along state lines with one board member of the renovation was the new conference
wholesale,” says Knox. “The Barron plant representing approximately 42 bottling room, large enough to accommodate a
at Rome, Georgia, was the last plant to plants. The new bylaws provided for a full meeting of the Board of Governors as
hold the 80 cent wholesale price. I watched Board of 23 elected members, plus the well as Committee meetings. Further
the system offer larger and larger bottles two most recent past presidents. The renovations were made to the Association’s
and then, of course, cans and other Nominations and Elections Committee office building in 1978, and in 1981
non-returnable containers became were directed to select nominees so that construction of an 8,000 sq. ft. addition
available around 1960.” small, medium and large plants would was completed.
In contrast to the 1950s, the decade be equitably represented on the Board. Knox was instrumental in launching
of the 1960s was one of turbulence and Election to the Board would be for a many other initiatives. “We set up an
major change. The Bay of Pigs invasion, three-year term and the procedures insurance company to handle our own
construction of the Berlin Wall, and the provided that the terms of one-third of insurance. It was an offshore insurance
Cuban Missile Crisis increased tensions the positions expire each year. Incumbents company we called GAIL (Georgia
between the U.S. and the Soviet Union. could be re-elected. After the election Atlantic Insurance Limited), which is
Alan Shepherd became the first American procedure was established, full member- still in operation,” he says.
in space in 1961 and the Beatles forever ship (100%) was achieved for the first Continued on page 8
The Coca-Cola Bottlers’ Association 7
Under Knox’s leadership, a comprehensive seminar in Atlanta for attorneys repre- cannot help but note the irony of the
study was launched on the role of senting its members. The purpose was “to FTC proposal. The franchise system is
Coca-Cola Bottlers in the distribution consider the opportunities and problems alleged to have ‘…hindered, frustrated,
of post-mix. The study was prompted from a legal viewpoint of various ways by lessened, and eliminated competition…,’
by the complexities of the fountain syrup which Bottlers may adapt their businesses yet the attack is directed at one of the
marketplace, keen competition nationwide to the changing operational, legal and most competitive businesses in existence.
and technical problems. Its objective was, economic environment.” Who could In the opinion of many, the free enterprise
“to make recommendations that will predict that only a few months later, the competition in the soft drink bottling
guide member Bottlers toward becoming attorneys for the Association and the industry has lowered prices to a danger-
a more significant factor in the distribution industry itself would face a challenge ously low level, not only from the
of fountain syrup on a profitable basis.” that could make or break the business. standpoint of the health of the industry,
The 27-page Final Report published in On January 15, 1971, The Federal but from its ability to serve the public
1967 proposed three changes: (1) bulk Trade Commission (FTC) issued pro- wholesome refreshment which it
syrup delivery, (2) repackaging of Sprite posed complaints against The Coca-Cola obviously wants.”
and Fresca (whereas repackaging activities Company, the Thomas companies, and The FTC formally issued an 11-page
involved only Coca-Cola syrup), and six other major soft drink companies complaint against The Coca-Cola
(3) training programs for post-mix (Crush, Dr Pepper, PepsiCo, Seven-Up, Company, the Thomas Companies and
service personnel. Cott, and Royal Crown) challenging the the six other syrup companies on July 27,
The changes brought about by the territorial franchise system used in the 1971. “To serve as our counsel,” says
1960s set the stage for the tumultuous bottling of packaged soft drinks since the Knox, “we hired Washington and
decade of the ’70s. In movie theatres, turn of the century. Atlanta-based Randolph W. Thrower,
The Poseidon Adventure, released in “The proposed FTC complaints were who had previously served as
1972, helped launch a new genre of a very bad cloud on our horizon,” says Commissioner of the Internal Revenue
disaster movies, telling the story of a Knox. “They were charging that by Service under President Richard M.
group of people battling for their lives having exclusive territories, Bottlers were Nixon. Thrower had been attorney for
on a sinking ship. As fictional disaster not competing with each other. This the Association for several years. We got
plots were becoming the rage among the went right to the heart of our business.” a legal opinion which did not bode well.
movie-going public, the potential for The FTC stated that territorial restric- The battle lines were drawn. If the FTC
real disaster was looming large on the tions “(1) eliminate competition between was successful, we would be out of
Coca-Cola bottling system. each firm’s licensed Bottlers, (2) deprive business. It was quite an alarming time.”
The 1970s dawned with an impending consumers and dealers of choice of The Association held the opinion,
rail strike and the possibility of a national supplier at competitive prices, and stated in the July 1971 issue of
over the highway Teamster’s strike. Douglas (3) deprive consumers of buying soft The Bottling Line, “that the territories
A. Taylor, of Rhinelander, Wisconsin, drinks in an unrestricted market at are legal and reasonable regulations of
who had been elected Association competitive prices.” business activities, that the industry is
President in October 1969, asked Knox The entire system geared up for what highly competitive and that if any
to inquire of The Coca-Cola Company could easily have been its own Poseidon, governmental action is contemplated,
about any “contingency plans it may but in heroic fashion it came together it should only be considered after a
have for itself, and recommendations it like never before. In his January 19, 1971 thorough and comprehensive study of
may make to the Bottlers, to prepare for letter to J. Paul Austin, who was then the economic impact on all parties.”
possible interruption in syrup deliveries president of The Coca-Cola Company, “So we had meetings and everyone got
which might result from these strikes.” Association President Douglas A. Taylor, uptight and excited as they should have
It was determined that a rail strike would wrote, “Let me assure you that The been,” says Knox. “We assessed Bottlers
affect only four syrup plants and alternate Coca-Cola Bottlers’ Association stands to create the Franchise Defense Fund.
plans were made to handle shipments to ready to defend, with The Coca-Cola The Coca-Cola Company had excellent
Bottlers should a rail or Teamster’s strike Company, the territorial rights and counsel and we had what we thought
develop. Similar concerns are echoed in responsibilities inherent in Bottlers’ were pretty good lawyers, too. As a matter
national security matters today. contracts between themselves and of fact, the whole industry, including the
On February 19, 1970, in another The Coca-Cola Company.” National Soft Drink Association (NSDA),
almost eerie foreshadowing of things to It was noted in a special issue of assembled the best legal talent the
come, the Association sponsored a The Bottling Line that, “As citizens, we Country had to offer. Somehow it was
8 The Coca-Cola Bottlers’ Association
conveyed to the Washington press that kicked out of the House Judiciary Achieving this legislative victory was
the Bottlers had gotten up a war chest to Committee meeting by Peter Rodino, the the result of an all out effort by Coca-Cola
hurt the consumers, to cause them to pay New Jersey Representative who chaired Bottlers in cooperation not only with the
too much for product, that it was illegal, the committee! He was just not our friend.” parent company but with the rest of the
etc. and my name was right in the middle According to Knox, “The hearings on industry, working at the local and national
of it. Obviously it wasn’t true, but after a the proposed legislation which would level within the political process.
particularly bad muckraking article by give us relief seemed to go on forever. Unfortunately, a meeting of the minds
nationally-syndicated columnist Jack The transcript was thousands of pages within the system would not always be
Anderson, the FBI showed up in my office long. Virtually all industry leaders testified.” the case.
and scared my employees half to death!” On June 24, 1980, the House of Knox remembers dealing with a host
Full hearings were held by Administrative Representatives passed the franchise bill of issues involving the Bottlers’ contract
Law Judge Joseph P. Dufresne from by a majority of 377 to 34 and on June with The Coca-Cola Company. Bottlers
May 5, 1975 to June 11, 1975. “I had 28, the Senate passed the amended felt that certain issues such as the sale of
to register as a lobbyist,” says Knox. House version on a voice vote. President Coke in closed containers “nibbled at the
“I had an apartment in Washington and Carter signed the bill on July 9. The law periphery” of the Bottler’s contract, when
commuted off and on for about a year, basically stated that the territories shall previously the Company had sold only
coming home to Atlanta on weekends. be legal under the antitrust laws as long syrup. Issues involving TAB, diet Coke,
I moved into the apartment that special as the trademarked soft drink product is as well as the pricing and use of various
Watergate prosecutor Leon Jaworski had in substantial and effective competition forms of sugar set off another series of
just vacated.” with other products of the same general debates between Bottlers and the
On October 8, Judge Dufresne class in the relevant market or markets. Company with varying opinions all
dismissed the complaint filed by the In a letter to Knox, J. Lucian Smith, across the board, “even amongst the
FTC. “The Administrative Judge found then President of The Coca-Cola Bottlers,” says Knox.
in our favor,” recalls Knox, “but it had to Company, wrote, “I want to take this Beginning in 1978, the Company
be reviewed by the whole FTC and they opportunity to reiterate my personal sought amendments to its contracts with
reversed it and found against us. The thanks and that of the entire Company all first-line Bottlers to permit a new
judge’s ruling didn’t really count because for your splendid assistance in the FTC formula for pricing Bottler’s syrup which
it was only a recommendation to the full franchise hearings. Your total cooperation, would utilize a sugar element, a base
FTC which consisted of five people. The astute counsel, unselfish leadership, and element, and the Consumer Price Index.
chairman was Mary Elizabeth Hanford decisive action throughout the preparations Pricing provisions for TAB and diet Coke
(who would become Mrs. Bob Dole of the hearings and the hearings themselves, would bring much fiery debate between
during her FTC tenure). She and the give an even greater meaning and spirit several factions. “My job was not easy,”
rest of the Commission found against to the phrase, ‘The Coca-Cola Family.’ says Knox.
us so we were really in the soup then. John, we are most grateful.” “The FTC’s attack on exclusive
“The only possible chance we had to “The legislation effectively ended the territories and the amendment negotiations
save ourselves was to go to Congress and battle,” says Knox. “It said that as long concerning the basic Bottler contracts —
get a bill passed to protect the franchise as there was substantial and effective these things went to the heart of the
system,” says Knox. “We really went to competition in a geographic territory, business,” says Knox. “With the
work. We got the Bottlers to track all then exclusivity would be okay. In effect, Association’s legal counsel, I flew all
their Representatives wherever they went. it discouraged the FTC from going any around the country and things got pretty
If they were flying somewhere, a Bottler further with it. The fight had waged on heated when the Company threatened to
would be with them, and this happened for several years and it was very enlight- cancel the contract unless the Bottlers
all over the Country. Every Bottler ening to me to see how the politics, could agree to the amendment. The way
worked diligently with their Representative government, and administration all they put it was that unless they got price
to get some legislation through to get us works. Sometimes it’s painful to watch. relief, the bottling contracts would
out of this mess. I lobbied Senators and Most of our elected representatives are be ‘vitiated’.”
Representatives all week long to try and hardworking, honest public servants, Internal disputes, of course, were
get some workable legislation through or but unfortunately there are always a intermingled with external battles. In
otherwise we would be gone. It was an few rotten apples. The last thing I ever particular, Knox recalls the Coca-Cola
intense battle and the Bottlers had an thought I would be is a lobbyist.” system’s duel with the Pepsi Challenge.
uphill climb. I can even remember being Continued on page 10
The Coca-Cola Bottlers’ Association 9
History of The Coca-Cola Bottler’s Association
Continued from page 9 a great and fine people to know and deal Congress. Otherwise, we wouldn’t have
“Pepsi was gaining market share with because they were the key people in had anything.”
because of the results they were obtaining their communities,” says Knox. “It was Knox recalls taking his leave from the
with sip tests between Coke and Pepsi,” said that you could drive through a town Association about the time Coke was
Knox says. “Of course, that’s when new and you would know who the undertaker reincarnating as Coca-Cola Classic. “I
Coke was introduced and not long after and the Coca-Cola Bottler were. They retired with a great feeling of accomplish-
that, the reemergence of Coke under the had the two biggest houses in town.” ment, having participated in a very
name Coca-Cola Classic. They even Following the mandate in the personal way in the top issues faced by
interviewed me on TV which was kind Association’s charter, Knox traveled the Coca-Cola family,” says Knox. “In
of amazing.” around the world for some 20 years with addition, I was very happy to have left
Looking back over his shoulder at the his Bottler friends to promote goodwill the Association in great financial shape
many changes which occurred in the and friendships among the members. with a very large stack of Coca-Cola
business over the years, Knox surmises “We went all over the world looking at Company common stock certificates.”
that one of the most significant changes Coca-Cola bottling plants. We visited Art Gregory replaced Knox as
was in the Bottler system itself. plants most everywhere, including loca- Executive Director on January 3, 1986.
“For most of my tenure, the Bottler tions such as South Africa, Russia, Japan, After his retirement, Knox spent almost
system operated as independent local China, Indonesia, Australia and Europe.” two years working to get The Coca-Cola
businesses,” says Knox. “In the early Whatever disappointment Knox may Scholars Foundation off and running. He
1980s, bottling franchises began to have felt at the beginning of his career was named founding Executive Director
consolidate. The Association had been about not having any substantive work until a permanent President could be
controlled by independent owners, many to do, those feelings were certainly not employed. The Foundation, which grants
of whom were families who had been in present when he concluded his work four-year scholarships to graduating
the bottling business since the beginning. with the Association. Reviewing a very high school seniors, was conceived by
Now it’s a different thing altogether. I satisfying list of achievements, Knox Coca-Cola Bottlers to celebrate the
believe there were about 1,130 Bottlers quickly points to what he considers 100th anniversary of Coca-Cola.
when I arrived and when I last checked, the highlight. When asked if he had it to do all over
there were just under a hundred.” “Without a doubt,” he says, “the high again, what would he do differently,
Be it 100 or 1,000, some of his fondest point was saving the exclusive territorial Knox responds without hesitation,
memories center around the Bottlers method of doing business by the “I’d ask for a bigger salary!”
themselves. “As a group, the Bottlers were legislation that we finally got through
CCBA works to improve supply chain
The supply relationships between across the entire bottling system. CCBA
I
n November 2004, CCBA began
work on a supply chain initiative producing and non-producing Bottlers and CCNA have begun to analyze the
with the vision of assessing the currently function in an unmanaged freight lane costs incurred by Bottlers.
Coca-Cola supply system to improve “free market” environment. CCBA is CCNA has agreed to help measure a
efficiency and effectiveness by eliminating engaged in creating some guiding Bottler negotiated freight lane cost versus
waste and controlling costs, for the principals which would be used to a negotiated CCNA freight lane cost. If
ultimate benefit of consumers, customers construct a sourcing agreement which any Bottler would like to participate in
and the entire Coca-Cola system. would allow the free market approach to this analysis please contact the Association.
The short term focus of the Association be maintained, but with some level of Work has been presented to the
is to gain facts around price disparities, stewardship that will optimize the overall Board of Governors, who is supportive
freight costs and ineffective sourcing. results for both the producing and and has decided to keep this initiative
Once these facts are in place, the long non-producing bottler. active for another year. The ideas were
term objective will be to recommend CCBA, in collaboration with CCNA, also presented to Mainstream Bottlers at
improved facility utilization with has already begun to identify opportunities their annual meeting, and they have also
rationalized production locations, which for Bottlers to reduce the number of pull embraced this initiative. If you would
will allow for more profitability for both points that a Bottler must use to fill his like to better understand these initiatives
producers and non-producers. pipe line. CCBA and CCNA have also or discuss specific opportunities for your
begun to facilitate the dialogue between ownership, please feel free to contact
producing and non-producing bottlers to Ron Hart at CCBA, rhart@ccbanet.com
10 The Coca-Cola Bottlers’ Association achieve a more equitable price points or 678-539-2324.
OSHA target list identifies Don’t Jump!
As children, we played hard, running and
180 Coca-Cola Bottler Locations jumping, falling down and getting right back
up and doing it all over again. Aside from the
scrapes, bruises and rare broken bones, that
I
n March, OSHA published a by OSHA through the states, state activity, and eating Wonder Bread was good
target list of 14,000 employers workers’ compensation agencies, for us. Research has shown that jumping
insurance carriers, or outside safety actually promotes bone growth and increases
whose worksites have higher than
bone density in children. That benefit, like so
average injury and illness rates. The and health consultants.
many others, quickly disappears as we move
notification was a proactive step to OSHA’s data collection initiative is into adulthood and worsens as we age. Oh,
encourage employers to take steps conducted each year to provide the we adults still jump off things, maybe for fun,
now to reduce those rates and agency with a clearer picture of those but mostly for necessity or to save time. A
establishments with higher than average particular case in point is truck drivers or
improve the safety and health
those who work in a warehouse with loading
environment in their workplaces. injury and illness rates. Information
docks. There is a tendency for these workers
Establishments with the nation’s high obtained from the survey gives OSHA
to jump down from the truck cab, forklift seat,
workplace injury and illness rates the opportunity to place inspection or off the dock plate. The vehicle might have
were identified by OSHA through resources where they’re needed most. hand-holds, a ladder, or a stair case from dock
The list does not designate those to ground. Yet, these conveniences, though
employer-reported data from a 2004
earmarked for any future inspections, available, are not always used. We often take
survey of 80,000 worksites (the survey
such risks without a real sense of the potential
consisted of data from calendar year though companies on that list are an
traumatic or cumulative damage to bones
2003). The workplaces identified had obvious priority. Nor does the list not and joints. Here’s a common scenario that
6.5 or more injuries or illnesses include employers in the 21 states and might grab your attention, or more
resulting in days away from work, one territory (Puerto Rico) that operate importantly your drivers’.
restricted work activity, or job transfer OSHA-approved state plans covering A 200 pound driver jumps down 4 feet to the
the private sector. These states do a ground from a dock or the back of a vehicle.
(DART) for every 100 full-time
He lands squarely on both feet and bends his
workers. The national average during similar targeting of above-average
knees to absorb some of the shock. Applying
2003 was 2.6 DART instances for injury rate companies.
Newton’s Laws of Motion (e.g. apple falling
every 100 workers. The 14,000 Extracting from that list those with from a tree) specifically the Second Law
sites are listed alphabetically SIC codes 2086/2087 produced 180 described by the equation Force equals mass
by state on OSHA’s web site at: beverage company locations. Of that times acceleration, or for every action there is
group, 78 carried the Coca-Cola name. an equal and opposite reaction. Enough
www.osha.gov/as/opa/foia/hot_11.html.
of the technical stuff…
Employers receiving the letters were Some of these are CCBA members.
When you run the equations, making a few
also provided copies of their injury and Several CC bottlers on this list have
assumptions on the way down, the impact
illness data, along with a list of the already been visited by OSHA. force on that person’s lower back can reach
most frequently violated OSHA standard Citations they received closely 500 – 800 pounds! And that is for an ideal
for their specific industry, and offered mirrored the OSHA Top 10 list of landing! Landing on one foot or hitting the
most frequently cited standards. Hazard ground in an unbalanced posture, could cause
the agency’s assistance in helping turn
the impact force to be as high as 8 times the
the numbers around, suggesting among Communication (lack of written
person’s body weight. And you wonder why
other things, the use of free safety and program, labeling, training) and
ankles twist, bones break, knee cartilages
health consultation services provided Electrical Safety (flexible cords) being wear out and discs rupture?
two. If you recently had This is a simple, direct, impact message (pun
an OSHA inspection, we intended) to convey to your truck and forklift
welcome knowing, in drivers. Encourage them to use the hand-holds,
general, what standards steps, rails and ladders provided on the vehicle,
and give them the reasons why. Those devices
were cited so that this
were provided for a very good reason. Gravity
information can be serves a very useful purpose, but it can hurt.
shared with other We’re not kids anymore.
member companies. If you would like more information or want to
Sources: OSHA.gov, and really sink your teeth into the mathematics,
William.m.montante@marsh.com contact Bill Montante at Marsh 404.995.2980,
or william.m.montante@marsh.com.
The Coca-Cola Bottlers’ Association 11
Lance lives it! The Coca-Cola Company and Fresca gets flavors Come September, Fresca
Coke Bottlers along with 7-time Tour de France will get a new look and two new flavors! The brand
champion Lance Armstrong proudly announced makeover includes a new logo and packaging
the Live It! Campaign to promote healthy eating graphics along with two new flavors — Sparkling
and physical activity. Currently being tested Peach Citrus and Sparkling Black Cherry Citrus.
in key markets, the program will be available These two zero-calorie additions join Fresca’s original,
to 6th graders in middle schools across the unchanged sparkling citrus as a part of CCNA’s
country in the fall of this year. Students will “100 Days of Diets” strategy, which may also
receive a personal stepometer to log their include the introduction of a diet version of Fanta
steps and activity cards to help choose (Fanta Zero) and Pibb Zero.
meals and snacks in line with new
dietary guidelines.
Now here’s an option for you Coke has
announced a new version of POWERade.
Coke’s in the Zone ESPN Zone restaurants POWERade Option is a new low-calorie, low-carb
will now serve Coca-Cola products, replacing sports drink with electrolytes and B-vitamins.
Pepsi. The ESPN Zone, which is part of the Walt Designed to compete with Gatorade’s Propel
Disney Company, was the last Pepsi holdout and Fitness Water, the new Option is available in three
now all Disney properties serve Coke products. flavors – Strawberry, Black Cherry and Lemon —
and sold in 32 oz bottles, 20 oz singles and six
It’s truly a red carpet Coca-Cola is back on the packs, and is available now!
red carpet as sponsor of the 2006 Academy Awards
after a seven year absence. Coke is planning seven A water for all seasons It’s easy to fall for
TV commercials for the ABC telecast, which is a Dasani in these hot summer months, but are you
close second to the Super Bowl in viewership, and ready to spring for a new version? Coke has
will feature Diet Coke in many of the commercials. applied for a trademark for “Spring! By Dasani”
which would introduce a bottled spring water to
Who’s Your Papa? Papa John’s Pizza signed a the market. And what about winter you ask…
seven year deal that will extend its beverage
well, just add ice.
provider agreement with CCE through 2011. The
agreement ensures that CCE will be the exclusive Now that’s a Diet Drink! The Coke — Nestle
beverage supplier for more than 2,600 Papa John’s joint venture, Beverage partners Worldwide, may
restaurants throughout the U.S., as it has for the launch “Enviga” a line of functional beverages next
past 21 years. year. One such beverage may actually promote
weight loss. Stay tuned!
Do groupies come with this deal? Coca-Cola
has entered into an agreement to become the May I suggest a Coke Zero with that Foie
master distributor for the energy drink “Rockstar” Gras? Not many restaurants have a soft drink
throughout much of the U.S. and Canada. CCE will sommelier yet, but if Coke has its way, that may
be the sub-distributor for Rockstar. The agreement soon change. Declaring that soft drink and food
will not affect the marketing or sale of Coke’s own pairing is the next frontier of beverage innovation
brand of energy drink “Full Throttle.” It should be at restaurants; Coke is suggesting that such pairings
noted that Coke Consolidated and Coke United can be recommended with the same panache as
already carry Rockstar. cocktails. While most bar-chefs create signature
alcohol drinks for their food pairings, there is a
A deal that fits to a tea Coke is in talks with move to provide sophisticated, non-alcoholic
beverage maker Arizona that could end up as
drinks that complement food and appetizers.
either an outright acquisition or a distribution deal
Let the creative mixology begin!
with the tea maker. Coke, which is looking for
products for health-conscious consumers, could Bravo CCE! Coca-Cola Enterprises announced
find Arizona’s Raspberry Tea, Diet Green Tea and plans to spend $38 million to acquire a majority
Botanical Red Tea with their snazzy packaging stake in Bravo Foods, maker of Slammers flavored
from artist Peter Max, a perfect addition to the milk drinks. Slammers drinks, which feature tie-ins
Coke lineup. A deal could be complicated, however, with Marvel comics superheros like Spider-Man,
by an existing partnership that Coke has with do not need refrigeration and come in various
Nestle to jointly sell tea beverages. flavors. CCE is also negotiating with Bravo’s
management for master distribution rights for
Nestea Ice Ice baby And speaking of tea, Nestea the company's products.
has introduced NESTEA ICE, its newest ready-to-drink
tea product with a “menthol-like” cooling agent.
Available in two flavors, Lime Iced Tea and Lemon
Green Tea, NESTEA ICE will be offered in 20 oz
bottles throughout the Northeast and Southeast.
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