The Atlanta Constitution from Atlanta, Georgia • 105

I v. ilHE MAONSTITUTION SUNDAY, NOVEMBER 19, 1972 Section ADS WANT AMERICAN RAGS-TO-RICHES SYNDROME Cola History: inesh a ystiq ue in COCA-COLA'S CHIEF ARCHITECT 1 1 iPi III Jll if 'J I Bridges Between People Built on Cases of Coke? By TOM WALKER Atlanta Journal Business Editor 80 tongues, people the world over ask for it 110 million times a day. New York City alone consumes 14 million cases of it a year. Just a short time after the Allies landed in North Africa during World War the headquarters of Gen. Ike Eisenhower asked his superiors for 10 plants that could turn out six million bottles of it a month.

By TOM WALKER Atlanta Journal Business Editor Charles W. Duncan Jr. sees one of his roles as bridge building. Not the kind you drive across, mind you, but the kind that relates person to person, nation to This is one of the ways he envisions the job he has had since November, 1971, when he was elected president of the Coca-Cola Co. Coca-Cola is what is known today as a "multi-national corporation" a relatively new phenomenon on the world business scene which has gained prominence since the end of World War II.

SOME visionaries of international economics have argued the multi-national corporation will do what governments have failed to do: bring peace among warring nations. The motivation, of course, is profit war for most companies is bad for business. "The multi-national corporation does have an opportunity to be a constructive force for peace," says Duncait "We sell our products in five.social-ist countries (Yugoslavia, Bulgaria, Hungary, Poland and Czechoslovakia). I've been to two of them and I found it exceedingly interesting. I think it's good when a company such as, ours goes into a socialist country.

We go in in a commercial way. If we do as we are expected, and they do as they are expected, it can be a I I i iial 1 I iJ1, 1 John S. Pemberton Asa G. Candler i I i i 1 1 I $''-- I sr i 4 1 I Staff Photo Bill Mahan 1TWO FLAGS THAT HAVE CIRCLED THE GLOBE Coca-Cola's North Avenue Office Building Its trademark is one of the most widely known in world, and as a product, is conceded to be as American as mom and applie pie. The company which produces it dominates its industry.

In fact, its share of the marketplace is almost Vh times greater than its nearest competitor, and its market is larger than that of its six closest competitors combined. AN INVESTMENT of $40 for one share of the stock of that company in 1919 would be worth $12,000 today not counting dividends. Its exact formula is a secret that has tantalized the industry for most of this century, but in the words of an early company brochure, it is made of "pure water sterilized by boiling. Sugar, granulated, best quality. Flavoring extracts, and caramel.

Caffein the active phinciple of tea Citric and phosphoric acids." Businessmen by the hundreds, veritable pillars of power and prestige in their own communities, have ridden to the summit of fortune on its coattails if, indeed, such a product can be said to have coattails. It is, in short, Coca-Cola. 1 And Atlantans can boast with pride it's a hometown boy made good. Just how good staggers the The Coca-Cola as an incorporated entity just 80 years old this year, is one of a small elite of American businesses with annual sales of more than $1 billion. In fiscal 1971, its sales totaled $1,729 billion, and some financial analysts predict it will reach $1.9 billion by year's end.

One of the world's most aggressive marketers, the Coca-Cola advertising budget alone would rival the sales volume of many large companies well over $75 million a year, and perhaps as high as $100 million currently. THE COCA-COLA CO. has BDC IN GEORGIA It Aims to Help, i I Profit Too Make good bridge." LJl: II I ByGENETHARPE Austin W. Woodruff J. Paul Robert Staff Photo Bill Mahan COCA-COLA PRESIDENT CHARLES W.

DUNCAN JR. Multi-National Firm With 'Unique Opportunity' small businesses in the state. In addition to funds raised by the sale of stock and the pledges, the U. S. Small Business Administration will lend money to BDC on the ratio of $1 to every $1.33 held by BDC in stock or pledges.

This means about $6.5 million more, making a total of approximately $17.5 million that BDC will have to lend to small businessmen in the state. Dye said BDC would not make loans in competition with other regular financial institutions, but would operate as an "adjunct to the regular institutions." He said BDC Turn to Page 2E, Column 1 policy is the same as it is in the United States: bottlers are franchised, locally owned. Coca-Cola Co. sells syrup and concentrate. The bottlers mix the syrup with carbonated water to produce the drink that goes to the consumer.

A reciprocal element of the multi-national operation at Coca-Cola is the growth in the number of foreign nationals who come to either to work or visiL "This is making Atlanta more of an international city," said Duncan. Another factor in this was the recent move of the Coca-Cola Export Corp. from New York City to headquarters in Atlanta. Duncan formerly tors and detractors; protecting its good name with fierce determination; weaving a network of independent, but related enterprises called "bottlers" that is one source of i phenomenal growth; taking it on the chin occasionally, but giving as well (usually better) as it has received, until today its product and name can be found practically everywhere in the world that man has set foot (and if it isn't there now, it probably has been, or will be in the future it's behind the Iron Curtain now, you know). 1 And for the first 62 years of its history, the Coca-Cola Co.

had only one. product: a beverage that could De pur- chased only in 6-ounce bottles, or at the fountain. Its diversification ap- proached with ultra-conservatism compared with many corporations its size, dates from only 1954 when larger-sized bottles of Coke were introduced. And to think: all of this re-, suited from a homemade con-Turn to Page 3E, Column 1 served as executive president of Coca-Cola Export, and then served the company in London as chairman of Coca-Cola Europe, a division of Coca-Cola Export. The move of the export division to Atlanta was primarily to achieve greater efficiency of operation between the division and the parent company.

THE COMPANY is committed to the franchised bottling system, Duncan explains, and gone through life innovating; growing, fighting off competi- GEORGIA ATTRACTIONS Tourists Mion )dds 1 Constitution Bnstnoss Editor BDC are the initials. They stand for Business Develop- ment a private firm; unique in Georgia, so unique -that it had to be authorized by special state legislation. BDC's business will be the establishment or expansion of small businesses in Georgia, by making business loans that' do not meet loan requirements of other banking institutions. it's not going to give money away," said Harold Dye, assistant director of the Georgia Department of Indus- try arid Trade. "It's designed to make a profit and be self-perpetuating." The 1972 General Assembly passed legislation to create Business Development Corp.

for the purpose of "promoting, developing, and advancing the economic welfare of Georgia." Although BDC is a private corporation, the legislation was necessary so it could legally sell up to $1 million in 6tock to persons and corporations and secure "memberships" from banks, insurance companies, other financial institutions, and utilities. PRESENT LAWS forbid these institutions from taking the kind of actions and making the kind of investments that it's hoped they will with BDC. Some 1,000 potential stockholders and corporation members are expected to meet Tuesday in Atlanta at the invitation of a letter from Govw Jimmy Carter to plan the beginning of BDC's operations. The initial legislation authorizing the establishment of BDC was sponsored by the Department of Industry and Trade, and the department has been chief organizer to date of BDC. But after the Tuesday meeting, control of the firm will be entirely by a board of directors to be elected.

Membership in BDC will be based on pledges by banks and other institutions to make loans to the firm within certain means and limits. These loans are expected to be made to BDC at a rate only slightly higher than the prime rate. THE LEGISLATION allows pledges to go as high as 10 to 1 over stock issues. Since as much as $1 million in stock may be sold, as much as $10 million in pledges (or loans) can' be made to BDC by its members for rclending to this in turn creates hundreds of local businesses domestically and internationally. The international thrust causes Coca-Cola officials to look at the possibilities of trade, or operations, with Rus-sia and Communist China.

Nothing definite is in the offing, but Duncan says that Coca-Cola's own experience would indicate these countries may not place as low a priority on consumer goods as is commonly supposed. Five years ago, he said, he would not have speculated that Coca-Cola would be in the five socialist countries where it operates today. Presumably this motive will be even stranger since Coke's arch rival, Pepsi-Cola, announced a trade agreement last week to bottle Pepsi in Russia the first U.S. consumer product made and sold there. A native of Houston, Texas, Duncan, 46, was educated at Sewanee Military Academy and Rice University, where he graduated in 194 7 with a chemical engineering degree.

He did two years of postgraduate study, then worked as a roustabout and chemical engineer for Humble Oil and Refining Co. He served with the Air Force in World War II. In 1948, he joined Duncan Coffee predecessor of Dun-Can Foods Co. He was elected administrative vice president in 1957, and president in 1958. When Duncan Foods merged into Coca-Cola Co.

in 1964, Duncan was elected a Coca-Cola director and vice president of the Coca-Cola Co. After his term with Coca-Cola Europe, he was elected executive vice president of the Coca-Cola Co. in May 1970, and became president in November, 1971, succeeding J. Paul Austin, who advanced to chairman of the board. DUNCAN considers that he has, in effect, only worked for one company, if you view Coca-Cola as continuous with Duncan Foods.

At his level of management, the structure of organization and decisionmaking is the executive's chief concern. In a sense, the particular product can vary from time to time and still confront the executive with the same kinds of management prob- I Dollars Met 1 Sptl I'll -q-1 ny gp- v-ru pq '-rT' RiS )r Mean BY JAMES HJGHTOWER Atlanta Journal Business Writer Few arguments are found to the adage "tourists mean dollars." But in Atlanta and perhaps other parts of Georgia more dollars are needed to attract more tourists. For as every state in the union (possibly excluding Oregon) hustles for the tourist dollar, it's just about certain that additional cash will be required locally in order to update, improve and maintain what those tourists are seeking: major attractions, either man-made or natural. And competition, according to some associated with tourism, is here to stay for Atlanta in bigger and better doses as new, major theme-park attractions hit their stride next summer in nearby Nashville and Charlotte LOOKING at the tourist situation in Georgia as a whole, Director Roy Burson of the State Tourist Division' points out that much expenditure to beef up attractions will be going for quality facilities with class appeal, encompassing respect for design and environment. Unquestionably.

quality is going to be the watchword in the future," states Burson whose division is part of the state Department of Industry and Trade. Burson explains his point of view further: "The traveler is so much more sophisticat- Staff Photo Bill Wilton LION COUNTRY SAFARI: NEWEST ATLANTA TOURIST ATTRACTION Here, the Animals Are Free, the Spectators Kept Inside mix in the game with other budding attractions of the same type in nearby states. "To meet this competition, Turn to Page 4E, Column 1 ed. They won't stand for anything less than a first-class operation along with qualitv." Other than sports and night club related entertainment, Atlanta has three major theme-park type attractions to offer tourists Six Flags Over Georgia, Stone Mountain and Lion Country At Six Flags, officials state emphatically they plan to stay 6UU Photo Bill Wilson STONE MOUNTAIN CABLE CAR State-Operated Family Park Turn to Page 4E, Column 1.