What Do Coca-Cola andThe Illegal Drugs Industry Have In Common?

Did you know that the classic soft drink, Coca-Cola, aka Coke, used to contain cocaine when it was first invented? Back in the late 1800’s cocaine was legal and considered medicinal, as Coca-Cola was originally manufactured with the use of cocaine and marketed as a “patent medicine” before it was a delicious fizzy drink for the whole family. By the turn of the 18th-century cocaine was removed from all Coke products, however, there are still more things that Coca-Cola and the drug industry have in common today than you might think. Read on to find out more than you knew before. 

Some of the similarities between drug cartels and Coca-Cola include their revenue, with Coca-Cola bringing billions of dollars, and the illegal drug trade being a multi-trillion dollar industry that thrives off of human connection and desire. These groups both have very high margins and make considerable amounts of profit off of their product, moving their product and people. Both of these products are highly addictive consumable goods that can generate groups of people who only want “the real thing” and won’t accept anything else in its place. They are both large worldwide organizations that operate in areas where governments are failing, including socially and economically unstable countries and war zones. Within these areas, there are large established networks of dealers, manufacturers, suppliers and distributors who get paid to move the product all around the world. Coca-Cola creates their own syrups, as well as has hundreds of its own bottling companies around the world that mix and bottle the ingredients, and then distribute the product to the local areas. 

Both have such strong business models, that they can even operate in war-torn countries such as Africa with child soldiers, where the government has been wiped out and nearly impossible to reestablish due to civil unrest. The unrest is so big that anyone who tries to establish a government would be threatened or killed by local warlords and the entire country would be in chaos. 

So how is Coca-Cola able to operate in an environment where there is no government to protect the supply chain from these criminals? The success is in the fact that everyone who touches the product gets paid. This means that whether you carry it, sell it, distribute it, or market it, you get paid. Government in place or not, this business model can function anywhere, and this is the same business model for a multi-trillion dollar illegal drug industry. Both have the same philosophy - everyone who touches the product gets paid - the farmers, people who process the ingredients, the drug mules, the dealers etc. Both entities have a "Pay everybody" philosophy. 

What does this mean for you and your business?

Only 2 % of business owners understand joint ventures, what they are and how they can benefit them. Most of the top Fortune 500 companies including Coca Cola get significant revenues from these joint venture partnerships and find great success. 

What is a joint venture? 

A joint venture is when two or more businesses get together and collaborate on a specific project. Within a joint venture, there is collaboration and the businesses share their profits, losses, expenses and resources with each other. This joint venture is a legal entity that is separated from the rest of the business’s interests of the companies. They are generally characterized by sharing ownership, returns and risks as well as sharing governance of the project. 

The moral of the story is that if you want your business to be successful and grow your business make sure that everyone who touches your product gets paid and is happy to work with you. Too many entrepreneurs cut corners and are too short-sighted to see the benefit of paying and keeping their people happy. 

Credit to Money, People, Deal by Stefan Aarnio for source information. 

Follow BuildandGrowBusiness to learn more about how you can build and grow a business like never before.