Asa Candler: Coca-Cola - Episode 1

[00:00:07] Hello everyone, welcome to the Almost Immortal History Podcast. I'm your host, Ryan Powers. There are very few people in the world today who have not heard of Coca Cola, let alone many who haven't consumed one themselves. Though as famous as the product is, many might not know the person most responsible for making it one of the most recognized brands in the world. Founding one of the most iconic products in history would be more than enough to cement a legacy for most, but this innovative entrepreneur and deeply religious and devoted family members

[00:00:37] sought to ensure his success would uplift millions in his beloved city of Atlanta and far beyond, leaving a legacy long after he was gone. So sit back and enjoy the story and the focus

[00:00:50] of today's episode from Coca Cola founder Asa Candler. It was 1887 in Atlanta, Georgia when 35-year-old pharmacist Asa Candler strolled into Jacobs Pharmacy, a well-known competitor down the street. The pharmacy, owned by Dr. Joseph Jacobs, housed a bustling soda fountain run by Willis Venable.

[00:01:20] Candler, a frequent sufferer of migraines, had come with a purpose. He had heard about the new headache medicine that was all the rage, and he was eager to try it. Well-connected in the Atlanta business community, Candler knew every pharmacist and soda fountain operator in town. Having sampled the best headache remedies of the day, he was particularly intrigued to try this latest one. Its inventor, fellow pharmacist John Stith Doc Pemberton, had spent years developing medicines of all kinds,

[00:01:47] but this latest concoction was different. It combined coca leaves from South America and caffeine-rich African cola nuts, giving the syrup a distinctive flavor. This new syrup gained instant popularity, unlike anything Pemberton had produced before. Though it wasn't until Willis Venable one day mixed the syrup with soda water, rather than the customary tap water used for other medicinal syrups, that the new medicine transformed into a local phenomenon. As Asa Candler took his

[00:02:16] first sip, he was immediately impressed with how good it tasted and how refreshing it was for a medicine. Thirty minutes later, when his headache subsided, he was even more intrigued. What Candler didn't realize then was that he had just drank something that would become one of the most recognized products in the world and would change his life forever. While he did not invent the drink that had just recently changed its name to Coca-Cola, no one disputes that Asa Candler was the singular force

[00:02:43] through his drive, innovation, and character that would make Coca-Cola one of the best-known drinks in the world, consumed in nearly every country across the globe. While he was fortunate to have a very timely headache in the city of Atlanta in 1887, none of the success that followed, or even the events leading up to it, attributed to anything other than the mind, character, and will of Asa Candler.

[00:03:11] Villa Rica, Georgia, located 30 miles west of Atlanta, was a small town of promise and opportunity. It was there, on December 30, 1851, that Sam and Martha Candler welcomed their eighth child, Asa Greggs Candler. The boy was named after a young local doctor who had tutored several of the older Candler children. As a founding resident of Villa Rica, Sam Candler had built a name for himself as a gold

[00:03:35] prospector, town sheriff, local politician, general store owner, and farmer. Martha raised their 11 children to be devout Methodists through daily prayer and a typical Christian upbringing. Despite the presence of slaves in their home, the Candlers insisted that all their children, when not studying for school, contribute to the daily chores and not be idle. This included helping at the family-owned general store, working the fields, planting corn and wheat, or tending the

[00:04:02] animals. Asa was 14 when the American Civil War ended in 1865. His education, while critically important to the Candlers, was consistently interrupted, first by the war, then by the local church school he attended, burning down. Despite this, Asa proved to be sharp and a fast learner. As a teenager, Asa flourished. After spending a year living with his sister Florence in nearby Cartersville to broaden his horizons, Asa returned home to work alongside his father and brothers on the

[00:04:32] farm and at the store, showing the ability to work hard and an interest in making money. Despite the hardships the war had brought upon the family, by 1870, Sam Candler told 18-year-old Asa that he had saved enough money to send him to his choice of either the University of Georgia or Emory College, a new school recently founded by the relative Ignatius Few. Sam wanted Asa to become a doctor like his namesake, Asa Griggs. While Asa shared his father's vision, he felt

[00:05:01] unprepared for college and told him that he wished to return to live with his sister Florence. Once there, he secured an apprenticeship at a local pharmacy where he could learn all about the creation, application, and dispensing of medicines while studying for school at night. He believed this would better prepare him if he was to become a doctor someday. Yet as time passed, he realized his passion wasn't in practicing medicine, but in the business of pharmacy itself. Anticipating his

[00:05:28] father's disappointment, Asa first sought advice from his namesake, Dr. Asa Griggs, in nearby Atlanta, sharing in his letter with Griggs his belief that there were already enough doctors in the area and that he could be more successful as a pharmacist, but, as he said, with a great deal less trouble of soul and body. Whether Dr. Griggs or Asa himself secured the 21-year-old his first job is unknown, but the move to Atlanta in 1873 to become pharmacist George Howard's assistant proved fortunate for

[00:05:57] Candler, his future hometown, and billions of people around the world for generations to come. It did not take long for the hardworking Asa Candler to impress his boss George Howard. Beyond his work ethic, Candler's customer-centric approach quickly became evident not only to Howard, but to every customer at the pharmacy located at 47 Peachtree Street. He made it a habit to write personalized notes to accompany each customer's order.

[00:06:26] My success depends on the amount of good I can do my proprietor in the way of trade, said Candler in a note to his family. Outside of work, Candler immersed himself in his new city, actively taking leadership positions in the business community and at the local Methodist church. Asa's budding life and career in Atlanta was briefly derailed when his father Sam passed away in 1873. Asa returned home to Villa Rica to help his mother Martha and siblings run the store.

[00:06:53] Before long, the family sold the farm and Asa returned to Atlanta. Martha followed him, settling just three blocks from the Peachtree Street pharmacy. Asa moved in with her, along with his youngest brother John and older brother Noble. After several successful years together, George Howard had earned enough to relocate his pharmacy several blocks away to a larger location at Marietta Street, while Asa, eager to establish himself, stayed at 47 Peachtree, partnering with his colleague to open, Hallman, and Candler.

[00:07:23] Whatever tension arose from Asa's transition from apprentice to competitor was overshadowed for George Howard by a more personal matter. During their time together, Asa had begun to court George Howard's daughter Lucy, and the two had fallen in love. An 18-year-old student at nearby LaGrange College, Lucy was described as a sweet-faced young woman with a soft smile and dark eyes. Asa was rumored to have fallen in love at first sight.

[00:07:48] The couple married on January 15, 1878, without George Howard's consent or even his attendance at the wedding. Though all would eventually reconcile, including Asa and Lucy naming their first child, Charles Howard Candler, born later that year in December. Asa, Lucy, and baby Howard lived with Martha, Noble, John, and now John's wife and their newborn baby. The cohabitation of so many family members and generations wasn't always easy, but it was a

[00:08:17] testament to the closeness of the Candler family. As their families grew, Asa and Lucy eventually having four boys and a girl, the need for larger and separate housing became apparent. They moved several times in the coming years to various developing neighborhoods across the city. Despite the family living apart, they remained close. Asa would visit his mother every day, stopping by her house in the morning and at night. He was also particularly close with his brothers

[00:08:43] Warren, who had become a successful Methodist preacher, and John, an aspiring lawyer. By the late 1880s, Asa had rebranded as Asa Candler & Company after buying out his business partner. His growing success stemmed from his continued hard work, knack for product instincts, and great customer service. In 1888, Asa wrote to his brother Warren, You know how I suffer with headaches, he said. A friend suggested that I try Coca-Cola.

[00:09:11] With that serendipitous headache and a friendly recommendation, Asa Greggs Candler had just discovered the product that would change the course of his life. 20 years earlier, Doc Pemberton, then a young former Confederate soldier, relocated to Atlanta from nearby Columbus, eager to establish himself as a pharmacist, just as Asa Candler would a few

[00:09:35] years later. In fact, it wouldn't be long before their paths crossed. When Candler declined to follow George Howard to his new pharmacy in 1878, Howard hired Doc Pemberton as his replacement. While Asa Candler's pharmaceutical ambitions were more entrepreneurial, Doc Pemberton's passion lay in the chemistry itself. A chronic sufferer of numerous illnesses, Pemberton spent his career experimenting with formulas to alleviate a range of issues. He created and sold such remedies as

[00:10:04] Globe of Flower cough syrup, Triple X liver pills, Indian Queen hair dye, gingerene, and extract of Stillinger, none of which were overly successful. Then in 1884, Pemberton mixed wine with South American coca leaves and African cola nuts to create what he called French wine coca. However, when Atlanta voted for alcohol prohibition, Pemberton was forced to reformulate. He removed the wine, replacing it

[00:10:32] with ingredients like sugar, citric acid, and various oils to replicate the taste of French wine coca as closely as possible. This new syrup was marketed as a temperance drink to ease headaches, nerves, and other mild ailments. Like French wine coca, this modified syrup was also a hit, though it wasn't until one customer drank the syrup not with water, but soda water, that the new concoction became a local

[00:10:55] favorite. Sensing its potential, Pemberton sought support. He partnered with Ed Holland, a longtime friend, as an investor, as well as two advertisers from Maine, Frank Robinson and David Doe, to help fund and promote his new syrup. It was Robinson who suggested the new name Coca-Cola, highlighting two of the product's key ingredients. He also recommended changing the K in Cola Nut to a C, making the name

[00:11:20] alliterative and more memorable. Robinson then commissioned a local printer to design a distinctive trademark for Coca-Cola. Using an elegant and popular Spenserian script font to give the name a classic look and make it stand out. Both the name and trademark design remain iconic to this day. Unfortunately for Pemberton, as Coca-Cola took off, he would falter. Decades of poor health led him to

[00:11:46] self-medicate, and easy access to his own medical compounds led to a growing morphine addiction. No one doubted Pemberton's expertise and perhaps even genius when it came to improving existing medicines or creating new ones, but his lack of business-savvy, health issues, and ever-worsening addiction led to more inconsistent and erratic behavior. With Pemberton's health in decline, he struggled to keep up with the growing demand for his product. Sensing instability in the venture, investor David Doe sold his stake,

[00:12:15] leaving Pemberton, Holland, and Robinson to fend for themselves. What followed was a year-long, chaotic exchange of ownership of Coca-Cola. In need of money, Pemberton sold portions of his stake, and possibly even those of Robinson and others, without their knowledge, to soda fountain owner Willis Venable and longtime friend George Lowndes. Desperate to ramp up production, Venable and Lowndes moved Pemberton's mixing equipment to Jacob's Pharmacy. However, they quickly realized that with the constraints of their day jobs,

[00:12:45] they too lacked the time to produce enough of the syrup to meet demand. Amid this uncertainty, Frank Robinson sought legal advice from attorney John Candler. John, in turn, introduced Robinson to his brother Asa to gauge his interest in getting involved. While Asa was not immediately drawn to the idea, he did recognize Robinson's business skills and hired him to assist with other business affairs. Robinson continued to suggest investing in Coca-Cola

[00:13:10] to Asa. This ultimately led to a conversation weeks later between Asa Candler and Dr. Joe Jacobs. Asa learned that a frustrated Venable had sold his stake of Coca-Cola to Jacobs. Seeing an opportunity, Candler offered to buy Jacobs' share, which he did in 1887. It was around this time that Asa Candler had his famous headache and sampled Coca-Cola for himself. The drink not only cured his headache, but impressed him with its unique and refreshing taste.

[00:13:38] Finding a remedy that was both effective and enjoyable was rare. Coca-Cola had left an impression. I was determined to find out about it, said Candler. Investigation showed that it was owned by parties unable to put it fairly before the people. I determined to put money into it and a little influence. Asa spent the next year buying out the smaller investors that had developed through Pemberton's efforts to fund his growing expenses. Once Candler had consolidated a significant minority

[00:14:06] interest, he approached Pemberton directly. Offering to forgive a $550 debt that Pemberton owed him, Candler secured one-third of Pemberton's remaining shares. With this deal, Candler gained majority ownership. In total, he had spent about $2,300 to take control of Coca-Cola. With ownership largely settled, Candler and Frank Robinson got to work. They moved Coca-Cola's mixing

[00:14:33] equipment to Candler's Peachtree Street Pharmacy and made slight adjustments to the formula to enhance the flavor. They mixed the formula in the basement, brewing 12 barrels every Saturday. Secrecy was paramount. Candler and Robinson were the only two who knew the precise new formula, committing it to memory to avoid ever having to write it down. In conversation, they would refer to it only as merchandise number five. They were also the only ones allowed to read the mail in case invoices arrived

[00:15:02] from some of the proprietary ingredient suppliers so no one else could piece together its composition. Meanwhile, Doc Pemberton's health continued to decline. As he watched the early success Candler and Robinson achieved with Coca-Cola, he attempted to sell the original formula under names like Yum Yum or Coke, spelled K-O-K-E, without much success. This, however, proved to be short-lived. Just months later,

[00:15:28] on August 16, 1888, Doc Pemberton died at the age of 57 from the stomach ailments that had long afflicted him. On the day of Pemberton's funeral, Asa Candler invited Atlanta's pharmacists to gather at his pharmacy. Together, they rode to the service to pay their respects. Pemberton was remembered not only as the creator of Coca-Cola, but also as a pioneer of patent medicines within the close-knit Atlanta pharmacy community.

[00:15:54] As with every venture he pursued, Asa Candler poured everything he had into growing Coca-Cola from the moment he acquired it. Even given his well-known work ethic, he took his efforts to new heights. Working hard all day, he would forego the typical lunchtime closure that other businesses took. Arriving home late at night, exhausted, Lucy would often pour cold water over his head if one of his frequent migraines had developed. Building on the existing network of local soda fountain customers,

[00:16:22] he and Robinson employed innovative marketing tactics to expand Coca-Cola's market presence. They first hired a small team of salesmen, known as drummers because they drummed up business, recruiting only trusted individuals, most of which were Candler's own family members. The drummers were dispatched across Georgia, then to nearby Tennessee, Mississippi, Alabama, and Virginia.

[00:16:46] Armed with a standout product, they also carried thousands of free samples and branded marketing materials. Using a tactic ahead of its time, Asa Candler would handwrite thousands of free sample coupons. The drummers would ask each new soda fountain owner for the names and addresses of their customers. The coupons were then mailed directly to those customers to be redeemed. This tactic proved wildly successful. Customers got a free drink, the soda fountain got more business,

[00:17:15] and Coca-Cola got new markets and more revenue. While the customers were receiving their free drinks, drummers were also providing the soda fountain operators with free Coca-Cola branded merchandise to be displayed in their shops. Clocks, calendars, trays, wall signs, notepads, pens, posters, cabinets, display cases, and more, all branded with a distinctive Coca-Cola trademark. As customers came to redeem their free samples, they would see Coca-Cola proudly and prominently

[00:17:44] displayed in their favorite soda shop, increasing the buzz and excitement around the new product. As demand grew, Candler moved production from his pharmacy on Peachtree to a larger facility on Decatur Street, just a few blocks away. Located on the second floor above a saloon and pawn shop, the expanded location allowed Candler to ramp up production to meet the growing demand. Candler and Robinson remained the only two who were mixing the formula. Standing on a large wooden

[00:18:11] platform holding a wooden paddle and leaning over a 40-gallon copper kettle that was suspended over fire coming from a square brick furnace, they would painstakingly mix the formula. The process would boil the mixture of sugar and hot water until it became a syrup. On occasion, the mixture would spill out of the kettle, onto the floor, and through the first floor ceiling, causing complaints from the businesses below that their saloon customers were getting dripped on, or that their pawn shop wares were getting ruined.

[00:18:40] By 1892, just three years after Asa Candler took control, Coca-Cola was producing more than 35,000 gallons of syrup annually, generating nearly $50,000 in revenue, equivalent to $2 million today. With this rapid and consistent growth, Candler officially incorporated the venture as the Coca-Cola Company on January 29, 1892. Within a year, Coca-Cola plants opened in Dallas, Chicago,

[00:19:09] and Los Angeles. Despite a nationwide economic depression, Coca-Cola's success showed no signs of slowing. By 1895, it was consumed in every state in the country, with an eye toward international expansion in Mexico and Cuba. By this time, while Candler and Robinson were no longer the sole syrup producers, the company continued to safeguard its secret formula known only to a select few.

[00:19:35] One of the proudest moments of my life, remembered Asa's son Howard, came when my father initiated me into the mysteries of the secret flavoring formula, inducting me, as it were, into the Holy of Holies. Even with a small sales force, now proudly calling themselves Coca-Cola men, sales continued to soar. The company's proven strategy of free samples and branded merchandise in each market was bolstered

[00:20:00] by a regional and eventually innovative nationwide advertising campaign. While choosing advertising as a promotional tool was not new, Candler and Robinson's approach was groundbreaking. By promoting Coca-Cola as both a refreshing beverage as well as an effective medicine, they broadened its appeal. They also used emotional and aspirational messaging to reinforce that drinking Coca-Cola brought happiness. While the initial ads focused more on the medicinal benefits, by the 1890s,

[00:20:29] it had become clear that Coca-Cola's future was as a beverage, not as a medicine. We found that we were advertising to the few when we ought to advertise to the masses, recounted Frank Robinson. Unlike the text-heavy advertisements of other products, Coca-Cola's ads were visually striking. They used vibrant, colorful imagery to position the product as more than just a drink. It was a lifestyle choice associated with energy and joy. Attractive

[00:20:55] and smiling women, dubbed the Coca-Cola Girls, were featured in the ads, placed in newspapers, magazines, billboards, and hand-painted murals across the country. This strategy not only made Coca-Cola one of the most recognized brands in America, but also one of the most popular. Continuing their advertising innovation in 1895, Coca-Cola pioneered celebrity endorsements, signing famous actress and singer Hilda Clark, followed by global opera star Lillian Nordica,

[00:21:23] and baseball superstar Ty Cobb. As Coca-Cola's dominance grew, so did scrutiny. The biggest challenge initially came from the concern that the drink contained cocaine from the coca leaves. One of the first to raise those concerns publicly was Dr. J.M. Alexander, a popular Atlanta physician. Candler was quick to put fears to rest. I would abandon the business, Candler said, if a single case of the cocaine habit was contracted

[00:21:51] from using Coca-Cola. With such a clear and earnest statement, Dr. Alexander retracted his concern. Alexander even issued a new statement, saying that he now viewed Coca-Cola as, quote, perfectly harmless. I use it regularly, he said, and find it has a delightful effect when I'm tired. Despite this early resolution, the concern resurfaced. Even with Candler's desire for secrecy about his formula, he also wanted to assure the public that his product was safe. Without disclosing more than he

[00:22:19] needed to, he did share that the formula called for less than a half ounce of coca leaf per gallon of syrup, and at that amount, quote, no sensible person could undertake to say that this quantity would hurt someone drinking the product. While the exact date is unclear, it is widely believed that the small amount of cocaine was removed entirely by the early 20th century to put an end to the concern once and for all. With the nationwide success of Coca-Cola, some distributors and soda shop owners had a new idea.

[00:22:49] Bottling. Rather than limit sales to soda fountains only, bottling could dramatically increase the product's reach. Candler was open to the idea but remained cautious, wanting proof of the concept before fully committing. In 1899, two men from Chattanooga, Tennessee, Benjamin Franklin Thomas and Joseph Brown Whitehead, had a vision. A year earlier, during the Spanish-American War in Cuba,

[00:23:15] Thomas had tasted a bottled, pineapple-flavored soda called Pina Frio. Seeing firsthand how successful bottling a carbonated beverage could be, he began to dream. Frustrated by how quickly soda fountain drinks went flat, he remarked to Whitehead, wouldn't it be great if a fellow could put this stuff on a bottle and stop it up so the gas wouldn't get away, and he could drink it whenever he wanted? Determined to demonstrate their idea rather than just pitch it, the two men created several sample

[00:23:42] bottles of Coca-Cola and traveled to Atlanta to meet with Candler. Having been pitched this idea before, Candler entered the meeting skeptically. He agreed that bottling had potential, but previous attempts had failed due to inconsistencies in taste and quality, factors he considered crucial to Coca-Cola's success. In addition to his concern about quality, as thinly stretched as Candler already was, he also didn't think he or the company had the capacity to take on bottling themselves.

[00:24:10] By the time Thomas and Whitehead met with Candler, bottling innovations had come a long way. As Candler suggested, early bottle stoppers were unreliable, leading to leaks and contamination. However, the invention of the crown cap in 1892 resolved those issues. Coupled with advancements in automatic bottling machines and improved carbonation techniques, mass bottling production was now more feasible. Thomas and Whitehead impressed Candler. Both were lawyers with experience in the

[00:24:37] patent medicine industry, and Whitehead's father was a Baptist minister, further appealing to Candler's values. We promise and guarantee you, Mr. Candler, said the men from Chattanooga, that in all the business we do in the bottling of Coca-Cola, we will make the name better every day. After hearing them out, sampling their bottled Coca-Cola, and conducting background checks, Candler carefully considered their offer. Then, on July 21, 1899, signed the contract granting

[00:25:06] Thomas and Whitehead exclusive bottling rights for Coca-Cola throughout the United States. In so doing, Candler, Thomas, and Whitehead had just set in motion one of the most revolutionary franchising systems in the history of business. This decentralized, franchise-based bottling model enabled Coca-Cola to rapidly expand to new communities across the country, particularly in rural areas without access to a soda fountain. Meanwhile, Candler and the Atlanta headquarters could remain

[00:25:35] focused on what they did best, ensuring product consistency, innovation, and promotion. Even with Coca-Cola's meteoric rise, Asa Candler remained a grounded and steady presence. While his wealth and the size of his homes had changed, his values and priorities had not. Religion and family remained central, serving as the backbone and driving forces of his life. Even as he exhausted himself at work, neither he nor his family ever missed church on Sundays.

[00:26:04] Each meal at the Candler home began with grace. They knelt in prayer each morning and often sang hymns at the piano at night. By the end of the 19th century, Coca-Cola was one of the most powerful brands in the country. Yet in many ways, it still felt like a family business. Of the few employees they had, most were family members or trusted family referrals. For most, such success would have been

[00:26:29] the pinnacle of achievement. But Asa Candler was not like most. As the dawn of the new century approached, so did challenges he could not have foreseen. Soon, his leadership would be tested in ways that went beyond Coca-Cola, as he would find himself fighting for the very future of his beloved hometown of Atlanta.