Environmental historian Bartow J. Elmore discusses the global consequences of ‘Coca-Cola capitalism.’

By Elaina Koros

Source: USnews.com

From its origins as a patent medicine formulated in a small southern pharmacy, Coca-Cola has grown into a multibillion-dollar company. Headquartered in Atlanta, it possesses one of the world’s most valuable brands. Yet despite its exponential growth over the decades, Coca-Cola has kept its operations streamlined by relying on partnerships with commercial titans like Monsanto and integrating its manufacturing plants with public water and recycling infrastructures, explains Bartow J. Elmore, an environmental historian at the University of Alabama. In his new book, “Citizen Coke: The Making of Coca-Cola Capitalism,” he argues that this business model, though widespread and successful, has global environmental consequences in the modern age. Elmore recently spoke with U.S. News about the sustainability and applicability of what he calls “Coca-Cola capitalism.” Excerpts:

What inspired you to write this book?

I grew up in Atlanta, born and raised on the syrupy Coke soft drink. Seeing this product that was from my hometown end up everywhere, I wondered how [something] that had started in the Jim Crow South in 1886 ended up all over the world. As someone who was interested in environmental history, I was particularly interested in answering that question from a materials standpoint. Beyond the advertising and marketing, how did the company acquire the natural resources it needed to put its product on retail shelves around the globe?

What is Coca-Cola’s business model?

I call the model Coca-Cola capitalism. I’d say what makes Coke great is not so much what Coke does, but what it doesn’t do. Coca-Cola embeds itself in systems of production and distribution that it doesn’t own. Coke didn’t own sugar plantations. It didn’t own caffeine processing plants. It didn’t own bottling businesses for most of its history. [Instead, it] relied on a host of independent businesses to supply its needs and to distribute its products.

How are Coke operations impacting the environment globally?

Coke is expanding into increasingly arid regions of the developing world, and that’s in part because Coke is going to places where there aren’t the same kinds of health concerns that there are in the United States. Unfortunately, that means they’re extracting water from places that don’t have a great deal of water to spare.

I think of the human body as part of the environment, and I end the book by explaining how the stomach has become a kind of silo, a storage unit for Coke’s excess. In a nation where more than 30 percent of people are obese today, this is a hot issue for Coca-Cola.

How has Coke’s expansion impacted other companies and the public?

One great example is Monsanto. You wouldn’t have a chemical company like Monsanto without Coke, because Coke in the early 20th century bought all of Monsanto’s main product, which was saccharin, an artificial sweetener. If you go to the Monsanto website, they say that in 1903 and 1905, without Coca-Cola’s massive purchases of their saccharin, they would not exist. I think that’s true of a lot of companies. It’s amazing how many businesses Coke has kept alive through its huge purchasing contracts.

When I say that Coca-Cola capitalism involves partnering with people, that often means the government. I think two good examples of this are public water supplies and recycling. Coke, throughout its history, depended on bottlers who tapped into the public water supply to access 80 percent of what they sold to consumers, which was water, 80 percent of the finished product. In the early 20th century, cities and even the federal government participated in building this infrastructure, spending billions of dollars to bring fresh, clean water to cities and increasingly to rural areas of the country. So, what made Coke expand so rapidly was that it was able to tap into that government infrastructure.

The other example would be recycling. If you look at the history, you see that Coca-Cola and its industry partners lobbied heavily in Congress to try and get curbside recycling to be the solution to the nation’s litter problem. Why not have you and I, the regular taxpayer, pay for that infrastructure and, in a way, conveniently bring the company’s packaging back to the company?

How would you curb some of the negative effects of Coke’s operations and products?

One thing is to make companies pay for the pollution they generate. If we don’t like litter, then we should force corporations to realize that by putting a price tag on it. I would say the same thing goes for obesity. If we think that these products contribute to really expensive health costs like obesity, then let’s make these corporations change. They’ll find ways to respond to the pressures that people put on them.