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In the late 19th century, Coca-Cola first flowed as a patent medicine. Yet in the decades that followed, Coca-Cola displayed admirable vision and pragmatism, acquiring brands and companies to slake consumers' changing tastes.
Acquired: 1960
Minute Maid is a pioneer in frozen concentrated orange juice. They went on to become one of America’s largest citrus juice producers.
In the 1960s, The Coca-Cola Company was looking to diversify its market presence. Looking for healthier options outside of soda, they decided to acquire Minute Maid, then valued at over $500 million.
It was one of the largest cash transactions ever.
Coca-Cola gained significant assets, including:
Coca-Cola used its distribution network to make Minute Maid an international brand.
Acquired: 1969
Moxie is an old soda brand founded in 1876 by Dr. Augustin Thompson. It was initially marketed as a medicinal tonic to “build nerve and brain power.”
Back in the day, it was one of America’s largest soda producers.
Before the acquisition, it still had a solid regional following in New England and a niche market nationally.
The Coca-Cola Company purchased Moxie for $350,000.
Coca-Cola continues to distribute Moxie in the Northeast to its loyal fans to this day.
Acquired: 1980
Waters & Robson goes back to 1882 in Sydney, Australia. It became one the first companies to bottle and distribute Coca-Cola in Australia.
And would later become Australia’s largest soft drink manufacturer.
Seeing its vast distribution network in the Pacific, Coca-Cola acquired Waters & Robson in 1980.
It received the following:
It helped The Coca-Cola Company receive an astonishing 90% of the Australian soda market.
Acquired: 1982
On January 19, 1982, Coca-Cola made the bizarre announcement to acquire Columbia Pictures.
Roberto Goizuet, the CEO of the time, thought it would be a great idea as they could strategically place Coca-Cola in the films it would go on to create.
It cost the company $750 million.
Some of the more notable films created under Coca-Cola were:
It ended up costing them more than it was worth, so in 1989, they sold Columbia Pictures to Sony Corporation.
Acquired: 1993
It would be more than a decade since Coca-Cola acquired its new company.
Looking to increase its market share after reentering India, the company purchased Indian soda giant Thums Up.
Founded in 1977, Thums Up was known for its unique spicy, fizzy taste and “Taste the Thunder” slogan.
Coca-Cola bought it for $60 million, and it gave them immediate market access and a distribution network throughout the country.
Acquired: 1994
In the 1990s, British consumer preferences were shifting toward natural mineral water. This health-consciousness trend was driving folks away from cola.
Abbey Well was founded two years before the acquisition.
It was known for sourcing its water from Saint Gildas springs in Scotland, environmental values, and charity walk partnerships.
Abbey Well quickly became the UK’s second-largest bottled water company.
Coca-Cola acquired Abbey Well for £33 million.
After the purchase, Abbey Well became the most prominent water brand in the UK.
Acquired: 1994
Barq’s Root Beer traces its origins to New Orleans in 1898.
The root beer was known for its original recipe featuring sassafras and unique “bite” and effervescence.
The root beer brand gained a cult following in Southern markets.
By the mid 90s, Coca-Cola only had a minor presence in the root beer market and was facing strong competition from regional root beer brands.
So in 1994, the Coca-Cola company purchased Barq’s for $91 million which included Barq’s newly constructed bottling facility.
The Coca-Cola Company made Barq’s a national root beer brand shortly after.
Acquired: 1999
Inca Kola was created by a British immigrant named Joseph Robinson Lindley in Peru in 1935.
It became a national sensation in Peru for its lemon verbena flavor and distinct neon-yellow color.
The soda dominated Peru’s soft drink market. Coca-Cola held only a tiny market share in comparison.
To acquire the soda brand, Coca-Cola Company acquired Corporación José R. Lindley (Peru’s Coca-Cola bottler).Through this purchase, they gained ownership of Inca Kola.
Coca-Cola has maintained its original taste and branding.
More importantly, they gained the following:
Acquired: 2001
Odwalla built a reputation for unpasteurized fruit juices and smoothies with nutrient-rich, sustainably sourced ingredients.
The brand gained a hip, health-conscious following in Western states.
Looking to expand their health food options, Coca-Cola acquired Odwalla for $181 million. It was Coca-Cola’s largest natural foods investment at that time.
Coca-Cola maintained Odwalla’s small-batch production methods but was able to leverage Coca-Cola’s distribution network for national expansion.
This helped them grow Odwalla sales to over $500 million.
Acquired: 2007
Fuze Beverage was a produced vitamin-enhanced refreshment beverage. They combined health benefits to teas, juices, and vitamins with appealing flavors.
Continuing on the health acquisition trend, The Coca-Company purchased Fuze Beverage for $250 million.
It became Coca-Cola’s most significant direct investment after Odwalla.
It was a big success; via the Coke network, they were able to see 400% growth in 4 years.
Acquired: 2007
Glacéau was founded in Whitestone, New York, to compete in the enhanced “functional” waters market.
The company is known for its brands:
The company grew like a rocket ship after its founding.
Coca-Cola acquired Glacéau for an impressive $4.1 billion (the largest acquisition at that time).
They were able to grow VitaminWater sales from $350 million to over $1 billion.
Acquired: 2011
Honest Tea was founded on a mission to create natural, lightly sweetened bottled tea. They focused on organic ingredients and Fair Trade certification. Innovating recyclable bottle packaging.
In 2008, Honest Tea faced expansion challenges beyond natural food stores.
To help solve these issues, Coca-Cola purchased a 40% minority stake for ~$43 million.
In 2011, Coca-Cola purchased the remaining 60% stake with a valuation of over $1 billion.
Acquired: 2017
Topo Chico is Mexico’s oldest mineral water brand, which was founded in 1895.
It became known for its mineral content, strong carbonation, and reputation for supposed healing properties.
It had vital cultural significance, especially among Hispanic consumers.
In 2017, The Coca-Cola Company acquired Topo Chico for $220 million.
Their goal was:
Coca-Cola has kept Topo Chico pretty much the same but has expanded its distribution network and has launched new flavors like lime and an alcoholic seltzer lineup.
Acquired: 2018
Costa Coffee is a coffee chain founded in London which has grown to 3,800+ stores by 2018. Best known for its affordable, consistent quality in its coffee.
Coca-Cola purchased Costa Coffee for $5.1 billion, making it the largest acquisition ever for the soda giant.
Coca-Cola bought the coffee giant for many reasons:
The acquisition helped to nearly double Costa’s market presence and successfully expanded into new markets.
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