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July 6, 2006

3:57 pm | 0 recommendations | 6 comments

Coke and Pepsi Unite to Fight Crime

| posted by Fast Company staff

A female Coca-Cola employee and two men were arrested in Atlanta yesterday for allegedly stealing confidential information from the Coca-Cola Co. and trying to sell it to PepsiCo Inc.

Pepsi alerted their rival when a letter, sealed in an official Coca-Cola envelope, offering to sell confidential information about a new Coca-Cola product arrived at Pepsi headquarters on May 19. Pepsi sent Coke a copy of the letter which prompted the Coca-Cola Company to contact the FBI.

Is it surprising to anyone that the executives at Pepsi did the honorable thing in this situation? The rivalry between Coke and Pepsi has been bubbling for decades. Was the decision to contact Coke an ethical dilemma for Pepsi or do the company executives really have their morals and values in line?

Tags: Work/Life, ethics
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Recent Comments | 6 Total

July 6, 2006 at 4:46pm

K. Lewis
How fascinating. And how reminiscent of 'Slugworth' from the classic Willy Wonka and the Chocolate Factory. I think the executives at Pepsi did the honorable thing- but why shouldn't they? At this point in their 100+ year rivalry, having one anothers "secret formula" won't do them any good. Pepsi has its own following, flavor, and marketing strategy that's just as good if not better than Coke's. If Pepsi tasted just like coke, there'd be no point. The rivalry between the two soda giants is now one of marketing strategy and product placement only. Flavors and formulas might have been important back in the day, but they aren't any more. America has already chosen sides in the soda debate, and leaked secrets won't make a difference.
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July 6, 2006 at 5:11pm

COD
Knowingly receiving stolen goods is a felony, and given the clumsy approach these clowns took, their eventual failure was a given. The Pepsi executives were smart enough to see that. And as the first comment points out, the formula isn't that valuable to Pepsi anyway. New Pepsi - tastes more like Coke! - is probably not the marketing angle they are looking for.
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July 6, 2006 at 7:43pm

Mike W. Miller
I appreciate and agree with much of what you have to say, Ms. or Mr. Lewis and COD, but I think you miss the point. If the item in question were a cola formula, then your comments would be on-track, but since it was for a new product, it could have been a big boon to Pepsi to know about it. You have to remember, Coke and Pepsi are both involved in selling fruit juices, bottled water, sports drinks, coffee drinks, and a ton of other products besides their namesake colas. I'm impressed with Pepsi, even though the cynic in me says (a) they had to review what was sent over in order to know it was something they should notify Coke and the authorities about, so the damage is done already, and (b) they may well have been afraid that they were being set up for a sting.
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July 7, 2006 at 3:49am

phil fox
basically all is null in this case, all a coporate giant has to do is have top chemist's break down the chemical components of whatever it is in question.
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July 7, 2006 at 4:03am

roger fulton
another non-story wastes our time: don't you think some chemist bought a bottle of the stuff and run it through a beaker twenty years ago and figured it out already? Gimmie a break? Marketing trotted out this scheme. Back to the drawing boards. If Pepsi DARED to use this, don't you think they would be in court by Lunch time Monday?????
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July 7, 2006 at 8:22am

Mike W. Miller
Phil, Roger, you both are completely missing the point. This is NOT about secret formulas. This is about advanced warning of a new product launch. That kind of knowledge, of when a competitor is launching a new product and what it is, is very valuable.
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