Sunday, February 13, 2011

The myth of Coco Cola's formula

Claim:   Only two Coca-Cola executives know Coke's formula, and each of them knows only half of it.

Status:   False. 

Origins:   For three quarters of a century, rumors about the measures theCoca-Cola Company has employed to keep the formula of its flagship product a secret have been used to enhance consumer perception of Coca-Cola's specialness. The company has courted the media on this issue, establishing through repetition the belief that anything so closely guarded must be special indeed.

Well, lollipops to that notion. What's special here isn't the formula; it's how the hulaballoo raised over it has been turned into yet another way to enhance the product's cachet.

Coca-Cola does have a rule about only two executives' being privy to the formula, but each of those men knows how to formulate the syrup independent of the other, not just half of an ingredients list. Perhaps this particular rumor about two executives, each knowing only part of the secret and thus incapable of concocting a batch of syrup on his own, results from confusion with the business practices of another Southern company famous for guarding its secrets, Kentucky Fried Chicken. (KFC's security measures include its secret blend of 11 herbs and spices being mixed at two different locations and combined at a third location.)

Coca-Cola's two executives rule to the contrary, the whole notion is simply part of a media circus — other than for the publicity value, there's no need to go to any lengths to keep the Coke recipe secret. Anyone who could reproduce the drink couldn't market the product as Coca-Cola, and without that brand name the beverage would be close to worthless. As the New Cokefiasco proved, the public's devotion toCoca-Cola has little to do with how it tastes.

Moreover, at least one of the ingredients called for in the recipe would be next to impossible to secure in the U.S. (or to bring into the country): decocainized flavor essence of the coca leaf. As it now stands, only Stepan Co.'s New Jersey plant possesses the necessary DEA permit to import the leaves and remove the cocaine from them. Anyone looking to reproduce the drink would have to go to Stepan to get one of the key ingredients, and Stepan would refuse to sell to them.

Okay, so keeping a tight lid on the recipe isn't so vitally important. Where, then, did all this tap dancing about a secret formula come from?

Ernest Woodruff (he who wasCoca-Cola from 1916 through about 1931) reveled in the secrecy of the formula, knowing that making a big to-do about it would convince the media— and thus the general public — thatthey were getting something really special when they bought a Coke. In 1925, the only written copy of its formula Coca-Cola admits to having was retrieved from a New York bank (where it had been held as collateral on a sugar loan) and reverently laid in safe deposit box in Woodruff's Atlanta bank, the Trust Company of Georgia (which later merged with Sun Bank of Florida, creating SunTrust Bank).

But that was only the first step. That same year the company set a policy whereby no one could view the formula without written permission from the Board, and then only in the presence of the President, Chairman, or Corporate Secretary. Furthermore, the rule dictated that only two company officials would be allowed to know the recipe at any given time, and their identities were never to be disclosed for any reason. In keeping with the spirit of things, company policy was amended once air travel became the norm to preclude those two officers from ever flying on the same plane.

'Twas all smoke and mirrors, though— even as Woodruff's people were communicating these security measures to the media, the company employed at least four men who were known to be capable of producing Coke syrup in their sleep and a handful of others who were strongly rumored to have this knowledge.

These days the Coca-Cola Company is quite close-mouthed about who knows how to make the syrup that makes the world go around. It is reasonable to assume, however, that no matter what the publicly stated policy is, realities on the manufacturing floor regarding syrup production haven't changed from the Woodruff days, with a number of people in syrup production knowing the formula by heart. Official policy, after all, is for the media — it's not meant for everyday use.

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