3 Burst results for "Coca Cola Board"
"coca cola board" Discussed on The Marketing Rescue Podcast
"Received over fifteen hundred calls a day compared to around four hundred before the change and a psychiatrist. That coke had actually hired to listen in on calls told executives that some people sounded as if they were discussing. The death of family. Member is incredible and there was a small but extremely vocal group of objectors. Mainly there were people from the southeastern United States that considered coca-cola to be a vital part of their regional identity and felt alienated by the new formula so they actually viewed the company's decision to change the formula through the prism of the civil war as kind of like another surrender to the Yankees. Yeah they actually staged protests and there was another group that staged these grass roots protests. They were called the Old Cola drinkers of America who were founded by Gay mullins. Who was a Seattle retiree? Who was looking for something else to do and wanted to start a public relations firm and he saw an opportunity in this so he borrowed one hundred twenty thousand dollars to start the organization to lobby coke to reintroduce to formula or sell it to someone else and he even filed a class action lawsuit but it was actually very quickly dismissed by federal district. Judge Walter McGovern. Who said he liked the taste of Pepsi? Got The wrong. Yes he lost in the game of Judge Lewis. This story could have going to hold different routes if the judge actually preferred yeah they got a little lucky they're also comically well. Lawsuit was in process. Gay was actually trying to get coke to be his client so he could help them. Reintroduce classic coke even more ironically in a couple of informal blind taste tests that he did. He couldn't even distinguish the difference between old and new coke in this blind taste test. So needless to say coca didn't hire him so now it's June and the temperatures are starting to rise not just from a from a temperature burn to view but also from a customer point here. Yeah so coke is leveling among its customers after this initial bump that you just talked about the initial fear assigned to creep in to the executive board because they can actually see that this Salesa plateauing where usually in summer it spikes ratty in addition not only the customers were complaining but now the bottle of souls are complaining and there were starting to express concern of actually selling this new thing to their in products. Yeah partly because those saying they were using the real thing which was the ad campaign up to this point and now the had to change the real thing is all the restaurants and gas stations and they were starting to push back from the B. Two B. Sales so something that's supposed to be constant and unchanging is now in constant and Jada. It's no longer the real thing. It's not the new real thing. Yeah so yeah. So there's these twenty bottlers that are still suing Coca Cola and they actually use this to their advantage in their legal arguments over the Sierra pricing. So coca-cola had argued in its defense when the lawsuit was originally filed the formulas uniqueness difference from diet coke justified different pricing policies. From Diet Coke. Which is you know why everyone was so upset. But if the new formula was simply just a high fructose sweetened diet coke the bottler said you know Coca Cola. Can't argue that. The formula is unique at that point so with the bottlers specifically in the south they who started getting personal backlash from their families and relatives about pushing the new Coq Cambridge asked people knew that people knew they worked for coke and they started getting like personal backlash not just from their customers so in June. Twenty third a small bunch of bottlers actually got together and private with executives to really air. They grievances so at this point. Coke is starting to face pressure from the customers. They sales is not spiking. That's supposed to be in summer. And now they're distribution units or. The bottle is are really upset with this. Well Yeah So. If you don't have bottlers you can't really do business right. So switching back to the old formula basically at that point just changes from if to win finally the Coca Cola Board decided that enough is enough so they set these plans in motion to bring back the old coke and this is why this is a marketing race skew textbook story and not a failure. Yeah because of what happens now in the accidental information which is a very bold right so company President Donald Keough reveals Years later in the documentary the people vs Coke that was From two thousand and two. They realized that this was the only right thing to do when they visited a small restaurant in Monaco and the owner proudly said to them that they served the real thing. It's real coke offering them a chilled six. And a half ounce glass bottle of the original Coca Cola on the afternoon of July Eleventh Nineteen Eighty Five Coca Cola. Executives held a press conference yet again and they announced. Wait for it. They bringing Coca Cola back and they branding it Coca Cola. Classic Nice a quote from the CEO. O Donald Keough Love Sport. He said our boss is the customer we want them to know. We are really sorry. And this is seventy nine days after the launch. The new COQ. Wow very bold right. Yeah this was such a big deal that a lot of networks actually broke. They regular programming with a special bulletin announcing this. Abc News Anchor. Peter Jennings interrupted General Hospital at the massive soap opera at the time with a special bullets into share the news on the floor of the US Senate prior holding reintroduction a meaningful moment in US history. So the company hotline received Thirty One thousand six hundred Kohl's in the first two days after the announcement so the natural question here for me is what is Pepsi doing this whole time. Because you have to think that they're seeing blood in the water now right absolutely so Pepsi try to take advantage of this and they ran a number of campaigns mocking coke for tossing Pepsi as the real thing after all and one of these commercials they say goal sitting on the floor having a dialogue with herself about Pepsi and Coke It. Let's play this quickly. Seek in Europe. Because it's is gold. Tell me why coke did it by changed I. They said they were the real thing. Then they said they were in in Kabul. They changed now. I'm trying my first Pepsi. Still want to know why coq change.
"coca cola board" Discussed on WAFS Biz 1190
"Louis on the law. My name is James Lewis. And I'm your host this week in every week and I have yet a another awesome show for you. Thank you. I have Turney Kevin Coleman on with me and Kevin works as an associate with Troutman Sanders had the last name probably shouldn't have I don't know. But anyways, we're not gonna get into that. We'll, we'll let him define all of that. Kevin we're talking mergers and acquisitions today. Are there any things that we need to consider before we get into the deal because I mean it's, it's, it's a big deal. Yeah. There are a lot of considerations for business, especially business. Never been through this type of process of your if you've gotten to the point where you have created value in your company, and you're looking to sail cash out exit every entrepreneurs dream will out for millions and by that in the Bahamas. You know, that that's, that's the reality for a lot of folks not me mentioned a lot of Caribbean life. Yes, eight Thomas. Sounds awesome. And so these companies, they really need to prepare themselves for process. So we'll talk about this from the targets perspective. If you're looking to sell your company now, there's a lot of housekeeping at you have to do you want to make sure well, because I'll take a step back. You have to realize that whoever's going to buy you or choir you, or merge with you or what have you. They are going to do a lot of due diligence on you. They want to know that you are, who you say you are there. No hidden liabilities that your strengths are really your strength that they know your weaknesses. They know what opportunities that you guys have that are valuable to them. So, you know, there's a lot of internal housekeeping. So, for example, I'll give you an example. You know, if your small business union brother and your sister run a business, there's probably not a lot of formalities being observed. Right. You all know each other everything runs smoothly when a company comes into by, you say twenty million dollars, they're going to want to know that you observe those four right though. Oh, you're ever thinking about being themselves, twenty million dollars worth of lawsuits. Violations, or perhaps there have been some, you know, there's been sloppy bookkeeping right? And they can't properly evaluate your financials. They are, so there's some additional work than needs to be done there. You know. So I think the first thing to do if you're looking to be acquired is to put together your team of advisors, your legal team your, your accountants, the people who can help you actually prepare for the process. There are a number of pre deal considerations. Okay. So does that go also for the purchaser to? Well, it does. But it's not the same type of preparation purchaser, and it depends on the method that they're going into the market to purchase the purchasers are really think their first step is identifying what type of business or what type of or of entity or acquisition makes sense for them. Does this make good business will this ad value for us? Well this value for our shareholders. So their preparation is more along the lines of, you know what is the strategic transaction bring to us. And for us versus the target is really preparing to make it self enticing. To a theater, I'm so their preparation. There's a lot of preparation on both sides. No doubt, but the preparation is different depending on which party you represent, which party you are. Okay. So let's get back to the target here. How do they go? How do they go about actually getting getting it out that they are in the market to be bought? So it really depends again. We can't cover all of our bases in on this call during this interview, but they're few different ways, there's a negotiated process where perhaps there are a few potential acquirers than they've been talking to, you know, perhaps they all run in the same industry. James widgets to go back to our example. If those widgets are calling the electron IX industry in, perhaps, you're at all the trade shows with all the other electric skies, perhaps that's the circle that you run with and maybe over dinner, maybe at a conference. You guys have started talks with another. Business. Hey, you know we've been pretty successful lately. I know you guys have been looking to grow. Have you ever considered an acquisition? Perhaps it's organic like that. So that's probably the most basic level of how a company could market itself in the most extreme level would be a bid process. Oh, wow. Like a public auction. We would call it a private auction, again this more on a private company sector, but, you know, accompany could hire an investment banker whose job is to market the company and they may go out, and they may identify twenty five or more bitter that they know are interested in this space, and they would. And again, we're kinda short circuiting and simplifying the process, but they will go out to those bidders share. Certain limited information, and see if those bidders are interested in a potential acquisition and then throughout a very structured process, they would narrow it down to a handful of bidders, and in connection with the purchase agreement and how that may look and the, the economics of those look good. They'll, they'll actually decide on who they want to buy them. So you think about typically when someone's buying something about you buying a car, you typically have all the leverage because you have the money the auction kind of turn that on his head. Right. If you have twenty five different people bidding on you. And you can increase your value for you and your shareholders. Okay. So you hear this phrase all the time and, and I this may be on the scope of this interview, but you hear this phrase hostile takeover. What is that about again? That's more in the public company. Okay. Setting. I'll give you just one brief example, you've probably heard of a tender offer. We'll use Coca Cola in their shareholders public. So, you know, you couldn't go to just one shareholder and say some your shares in the company, you need all of the shares. So, you know, one method of hostile takeover is a company, bypassing coca Coca-Cola's board. And offering all of the shareholders of Coca Cola a premium of what their stock is worth their stock is worth thirty two dollars a share today. They may offer thirty seven dollars a share and that may be very enticing coaching all those again. This is simplified version of all of those shareholders decided. That's a pretty good value. We'll do that. And they get a certain number of them to agree, then, that's one of the shift the balance power, one of the typical ways you'll see kind of a hostile takeover in hostile just means the board didn't approve it. This didn't come from an internal process. Coke didn't say you know what? We're in the. Market. We're going to sell off our, you know, this division, or we're going to sell off coke someone from the outside said, we're going to bypass the board and we're going to wreck for their shareholders. Let's see, they'll bite at this apple that I'm dangling. Okay, so we'll get back into into the private companies. So is there is there a process in which a business can go ahead and say, I'm interested in buying you? I mean I know in real estate purchases you do a letter of intent is, is there a correlation there? Absolutely. That is not the first step typically the first step would be a confidentiality agreement of the parties are sharing information about each other to even decide if they want to pursue a transaction. But after they've decided that they wanted to pursue a transaction and the parties have been narrowed down in there, too, that are emerging than they typically would enter into a letter of intent and in the corporate and emanate context. That's a non-binding for the most part. There's certain provisions that could be binding, but it's an agreement to negotiating good faith. They may lockdown the material terms so purchase price and certain employment agreements. We would like to retain this person even though we're buying you this person may need to retire, so they'll come to an agreement in print. Simple. And then they will have to spend the next several months, probably negotiating the actual aggravation documents and they have agreed to do that in good faith. And that's what a letter in tennis. Okay. So does this go into the business in legal due diligence process? So that kicks it off. Right. So you sign a letter of intent, and now, the buyer is thinking, okay. Let's get into this, and they would have done some diligence on the front end even get to the letter of intent. But and it seems like that happens in the in the pre pre by consideration there, you know, and some processes, they step up the, the amount of information available. So there may be a first round of negotiations. And they, they allow the buyer to see, you know, this much information, and then they may enter into a second round of negotiations, and they let them see even more information but due diligence is just a fancy name for, you know, am I stepping on a landmine? You know, we'll, we'll use our time to talk about legal due diligence. And we'll we'll continue all this example of James widgets. Let's say James on into the widget business. Oh man. So. Hamas. Let's say James say your company owns a huge manufacturing facility up in bucket. Right. And I am going to acquire you. Let's just say I'm going to acquire all of your equity interests. I'm going to buy your equity in your LLC. Well, there are a lot of things I need to start thinking about right, the first that comes to my big manufacturing facility is he dumping any wastewater or anything. Out the back door that about right? These widgets is he own them this. He licensed them who actually owns the electoral property. They're the real estate. Does he own that building? Does he lease it? You know, with the landlord agreed to us, taking it over, you know there are a lot of different things. And let's go to the to the plus side of the ledger. You're contracts, your customers. You say you have ten million dollars worth of sales each year. Well, I'm going through your contracts to see one does that make sense? Does it all that up? Are there any pitfalls in these contracts that I need to know about are there any automatic triggers that you may have entered into some deal that says, we'll pay you a million bucks a year? But if you ever sell you two million dollars. Right. So you just never know until you get into it. So that's the nature of legal due diligence. We really wanna find out if there any land mines and who's risk. How's the allocation of risk on a play out here? And what do we need to know about that? We need to protect ourselves from. Gotcha. So Kevin, we're almost at the end of the segment. Tell me a little bit about your practice again, so my practice is corporate and financial institutions, and I will say a good bit of my work as a but we also do a lot of general corporate work. So that could be restructurings that could be general corporate governance vice and we also council financial institution. So fintech companies community banks large, public banks, and so anything transactional or business transactions based, we can do it in. That's what we do. You're listening to Louis on the law. We are at the end of this segment. I'm having a great time. This is an awesome show filled with information. All my shows are carved on my website. Go to James Lewis legal dot com, and you can always Email me James, James Lewis legal dot com. I have a podcast page our podcast, our international. Now we..
"coca cola board" Discussed on WBBM Newsradio
"City on every inhabited continent than the largest program in the US basic domestic airfares lowest and almost twenty five years the average cost for. Airline travel within the US reached its lowest level since nineteen ninety five when tracking began three hundred forty three dollars after adjusting for inflation. That's two dollars lower than the same period. The year before according to the numbers from the bureau of transportation statistics, however, that doesn't count the fees that airlines ad for things like checking a bag getting a roomier seat or moving up in the boarding line. Airlines are relying more and more on those extra fees and credit card deals to boost their revenue and stay profitable. Jackie Quinn, Washington. Well, Bill Daley enters the home stretch in the race for mayor. His brother is clearing a schedule. Former Chicago mayor Richard m Daley is retiring from the Coca Cola board, the Atlanta based company announces that daily will not stand for reelection at its annual meeting in April. He's been a Coca Cola director since two thousand eleven he's executive chairman at an investment and advisory firm in Chicago as well as council editor Chicago. Oh based law firm daily was mayor of Chicago from nineteen eighty nine to twenty eleven and will next week. His brother is running for mayor of Chicago, Chris Kreider L NewsRadio on one five point nine FM newborn giraffe at the Indianapolis zoo is the first female of the African species born there nearly twenty years a ridiculous draft ways one hundred thirty four pounds stand six feet tall. His name McCain ah, which means happy or abundance in Healy. What would you see news happened? Please call the WBZ news tip hotline. One eight hundred seventy eight four news that's one eight hundred seventy eight four six three nine seven. We'll take a look at business. News coming up next WBZ news time, five twenty three..