Putting the fizz back in Coke

Neville Isdell had a special bond with India. After all, he was instrumental in Coca-Cola’s re-entry into India after George Fernandes had successfully kicked it out of the country in 1977. Yet, ironically, in 1993 when he was handed India as one of his territories, having to relinquish Africa in its place, he was so upset that he considered quitting the company. That was because he thought sales volumes in his group would dramatically dip because soft drink sales in India were negligible at the time. But he stayed on and never regretted his decision.

So when Coke brought him out of retirement from Barbados to become its CEO, the first country he visited after taking over was India. And the importance that he gave to India is reflected in his just released book Inside Coca-Cola, in which he has written a whole chapter on the country. It is a privilege that he has shared with other places in which he played a key role — Africa, Germany and the Philippines. The book stands out for two reasons: it’s racy and well written and, as importantly, not bulky like most autobiographies — this one is only 254 pages.

What is striking in the book is Isdell’s direct approach. He cannot be accused of mincing words when it comes to talking about his colleagues — some of whom he clearly did not like and others whom he would back to the hilt. It would, however, be fair to say he makes no attempt to eulogise himself either — despite the general opinion in the US that he was able to turn around the beverage major from one of the abysmally low phases in its history.

The book provides some interesting insights into Isdell’s relationship with some of the key players in the Indian business. For instance, he completely backed the strategy followed by Jaydev Raja, the Indian subsidiary’s first CEO. Raja’s strategy was to acquire Ramesh Chauhan’s strong local brands (mainly Thums Up) and, instead of killing them, he proposed to make them stronger together with the Coke brands. Isdell says candidly that Raja resigned in disgust pressured by the Indian media for destroying a national icon, on the one hand, and by Douglas Daft (who later became CEO) for doing the opposite, on the other.

That he had no faith in Sanjiv Gupta, the other savvy but controversial India CEO who introduced a low-priced Coke in India, was amply clear when he wrote: “I am a great one for watching body language. Without exception you could see the fear that the employee had for Sanjiv… I told Mary and Patrick I didn’t think he was the right guy for the job….”

And as for his first partner in India, Rajan Pillai, he has nothing very charitable to say except that he “smelled a rat” when “Pillai held a lavish party at his home in Mumbai complete with fire eaters and snake charmers, all the top film stars”, but realised that the “expenses were paid through the joint venture”.

But perhaps Isdell does not deal with some of the bitter battles that he and his team had to fight in India — although he does mention them in a few sentences or paragraphs. So, while he talks about Ramesh Chauhan’s reluctance to “relinquish the title of India’s soft drinks king”, the open battles that Coke had to fight with him and some of those aligned to him are not chronicled in any detail.

The book also covers very much in passing the bitter battle over the pesticides controversy, which virtually destroyed the credibility of the brand in many parts of the world and even saw its share prices fall as a result. The attack that stumped the two multinational beverage companies resulted in a sudden decline of cola drinking among consumers. Or, on the travails that the company faced in trying to gets its Foreign Investment Promotion Board clearance from the government.

The book takes us through Isdell’s career, which began in Africa, where he confronted the racial inequality of the Apartheid regime by making attempts at integrating the races in the business. He also details how he put Coke back on track in the Philippines after the brand had lost out to its arch global rival, Pepsi; his tryst with Germany where he was the first non-German boss; and, of course, his experiences as the Coke boss who brought back the company from tough times under Douglas Daft and Ivestor. It is a must read for anyone who is interested in large corporations and especially in understanding the tough competitive world of the global beverages business.

INSIDE COCA-COLA
A CEO’s Life Story of Building the World’s Most Popular Brand
Neville Isdell
St Martin’s Press
272 pages; $25.95