Coca-Cola and the Great Depression
Just one year after Coca-Cola’s IPO, the company had amassed $40 million in assets, and by 1929, the company had sold nearly 27 million gallons of syrup, up 150% from 1920.
But then on October 24 1929, the Wall Street Crash launched America into a decade-long economic downturn.
Despite declines in sales, Coca-Cola had dedicated themselves to long-term brand equity by continuing to increase advertising costs. This resulted in unparalleled consumer loyalty, despite depreciating stock value, and enabled Coca-Cola to emerge from the economic crisis relatively strong.
This performance helped Coca-Cola join the Dow Jones Industrial Average– which measures the performance of 30 significant US stocks – in 1932, though it was removed in 1935.
Coca-Cola during World War II
When the US entered World War II, Coca-Cola decided that their product should be available to all deployed soldiers, wherever they were. This created a global demand for the drink, causing the number of countries with bottling facilities to nearly double from the mid-1940s to the 1960s.
Coca-Cola also introduced its second drink, Fanta, to German markets during this time. Fanta is now consumed more than 130 million times every day.