Cola Wars
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Title: Cola Wars

Essay Details:

Subject: Miscellaneous
Author: Robert H
Date: February 14, 2012
Level: University
Grade: A
Length: 2 / 480

Essay text:

The acquisitions costs of the independent bottlers were high. Between 1980 and 1985, Coca-Cola's case increased their debt levels from 10% to 23% by $1 billion. This debt increase was reduced to 8% in 1986 via the floatation of 51% of the new integrated bottling business. Such a decision to sell control of the company assisted Coca-Cola avoiding potential antitrust problems. Operational Benefits Through the reduction of the number of bottlers, concentrate producers reduced their negotiation time and costs. Previously, negotiations would take place with each independently bottler. Should a new package be required for a drink, in many cases, a new production line would need to be built...

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