Coke 0 – Gintonic 1

The unprecedented Coca Cola crisis in Spain

To those who never drink Coca-Cola sounds strange to us as everything that is happening in recent months with the brand. On the one hand Coca-Cola has been the aspirational reference in communication for many years. Even campaigns are remembered “The Spark of Life” or the great Christmas campaign of the 70 “to the whole world I want to give a message of peace...” whose video I've recovered for the nostalgic.


On the other hand Coca-Cola has always been behind the big events, sports cars, musicals, National, Regional, Local. Coca-Cola got the most desired positioning by a brand on our planet: the mark of happiness.

But a crisis ends up affecting every cyst, and Coca-Cola is no exception. Mark of the Fifth, brand manager in Spain and great talker, claimed a few days ago from his account Twitter “The Iberian Partners ERE results from the merger of 8 Spanish companies. We support your business logic even if it hurts their labor impact”. Words are pretty, but recently The Economist claimed that The seven former Coca-Cola bottlers in Spain - merged today into the new Iberian Partners- have obtained between 2010 And 2012 A joint operational benefit of 860,9 Million. However, the company justifies the restructuring plan put in place, that will affect 1.250 workers and will involve the dismissal or pre-retirement of workers 750 People, because their profits are falling.

Lose Coca-Cola money?

Continuing with The Economist, in the first nine months of 2013 made a profit from 127,5 millions of euros. And not only that. Your margin, In addition, is increasing. In 2012 it was from the 50 percent and now, despite the arguments the company uses, is located in the 54 percent on sales. So we already know something, perhaps Coca-Coca has reduced the percentage of growth, but it's not in red numbers at all. Many Ibex companies would like it 35 have those benefits. Is that clear, Coca-Cola doesn't lose money.

What about the president?

We have been able to read in various media that Sol Daurella, Coca-Cola Iberian Partners president closed 2012 with a personal benefit of more than 23 millions of euros and a wealth 50,7 Million. But as Andrés Toledo says of Pure Marketing, Daurella's reputation is down the ground because of its tax skication (tax in Luxembourg).

The social response

Unsurprisingly, social movements and unions are trining, because they don't understand that a company that has no losses and whose president swims in abundance and “Cheats” Spanish tax can organize an ERE that affects 1.250 Workers. But this time it's been the social media those who have hosted the debate and are starting to generate an unprecedented anti-Coca-Coca campaign in our country.

Coca-Cola's response

Click to enlarge
Click to enlarge

Today Coca-Cola Iberian Partners has published this announcement to justify the decision of its ERE: The truth is, they seem to put more firewood, since I'm convinced that the 80% Spaniards did not know of the existence of a crisis in Coca-Cola. And besides,, the effect derived from its reading does not convince too much if you are one of the direct affected by the ERE.

Models are reviewed. Will this be the beginning of the end of Coca-Cola?

The Spaniards have gone from “Cubata” gin and gin. This reality cannot be denied by anyone. On the other hand, the Mediterranean diet recommends unsweetened or carbonated beverages: Water, came in moderation , Juices… The consumption model is reviewed, and the hundreds of millions of euros invested by this brand in recent years cannot stop the phenomenon of return to consumers of proximity.

Coca-Cola won't die, at least in the short to medium term, but you'll have to get your most humane side back, the side that propelled her, to re-enjoy a preferred place in our minds. As I commented in the article published last Friday in Soymimarca Corporate Branding + Personal Branding - Full Branding, of no use serves a brand a great effort in Corporate Branding if then the image given by its managers (Personal Branding) doesn't accompany. Coca-Cola needs to get its model back “Full Branding”, and he won't do it with ads in the press, will do so using the weapons of the attraction marketing and those of integrating a corporate branding model with a personal one. Luck is cast. For now, I think the one who's going to get the best out of this crisis is the gin and go.


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6 thoughts on "Coke 0 – Gintonic 1”

  1. It's said: Who a buén tree is thrown good shade shelters him. By this I mean the fact that the spark of life is very cool, very vitalist aquarium ads and those of the big-powered granujillas fantasist are very “divers”.

    But the question is, -How crazy is the tree that shelters all this good?-

    The ones you know about brands, branding and people you might see a gap between the values they project and those who practice. A sin that ends up going billed.

    Going back to the sayings, “Tell me who you're going with and I'll tell you who you are.”

  2. There is no doubt that the attitude of a company's managers permeates the brand. Or as you rightly say, personal branding can positively or negatively influence the brand of the company you work for.
    If you add to that some explanations about the ERE that contradict the company's economic data, the damage to the brand is already done and can be deep.
    Coca-Cola as a brand, it's strong and the addictive product, but nothing lasts forever if you don't take care, renews and reinforces the values that have made you great.
    And the most important and dangerous thing about the case is when you forget that the vital thing for a brand is not to position yourself in the mind of the consumer but, especially, positioning yourself in your heart.
    And there, the attitude of the company and its directors in this matter of the ERE, are the ones that can cause that emotional breakdown that, Until now, had been the great strength of the brand.

    • True Ramon, nothing lasts forever, not even for a brand as ingrained in our lives as Coca-Cola. At the heart you nail it: a brand is as strong as the place it occupies in your heart, not in your head. Thank you so much for writing!


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