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After 99 years of guarding their secret formula, Coca-Cola made the boldest move in consumer goods history. When Pepsi's taste tests revealed that consumers preferred their sweeter formula 57% of the time, Coca-Cola panicked and took the unthinkable step – they altered their sacred recipe.

In this episode of "A Case Study in Corporate Fear," host Taras Wayner examines how fear transformed the world's most successful beverage company into the architect of its near destruction. From Coca-Cola's rise as an American icon to Pepsi's psychological warfare through the "Pepsi Challenge," we uncover how brilliant leaders can make disastrously foolish decisions when driven by fear.

But this isn't just another corporate disaster story. This is about discovering that there's an antidote to fear – and how Coca-Cola's response to their mistake turned one of the biggest blunders in business history into one of the greatest comebacks ever.

Timeline of Events

· 1886: Dr. John Stith Pemberton creates Coca-Cola as medicinal tonic

· 1915: Iconic contour bottle design created (inspired by cocoa bean, not cola nut)

· 1931: Santa Claus advertising campaign begins, creating modern Santa image

· 1945: Coke available in 120 countries after WWII expansion

· 1975: Pepsi launches "Pepsi Challenge" taste tests

· 1983: Michael Jackson signs record-breaking $5M Pepsi endorsement deal

· 1984: Coca-Cola conducts 200,000 consumer taste tests

· April 23, 1985: Roberto Goizueta announces New Coke formula change

· July 10, 1985: Coca-Cola Classic returns after 79-day New Coke disaster

· 2002: "Coke II" (rebranded New Coke) quietly discontinued

Essential Books

· I'd Like the World to Buy a Coke by David Greising - Comprehensive Coca-Cola corporate history

· Blink by Malcolm Gladwell - Analysis of taste test psychology and New Coke case study

· The Real Thing: Truth and Power at the Coca-Cola Company by Constance Hays - Inside look at corporate culture

· Secret Formula by Frederick Allen - Definitive history of Coca-Cola from founding to modern era

· Citizen Coke by Bartow Elmore - Environmental and social impact analysis

Academic and Scholarly Sources

· Harvard Business Review case studies on New Coke disaster

· Journal of Marketing Research papers on taste testing methodology

· Journal of Consumer Psychology articles on brand loyalty vs. product preference

Documentary Films and Video

· The Cola Wars - Documentary series on Pepsi vs. Coca-Cola rivalry

· Coca-Cola: The Real Story - Corporate history documentary

Connect with Taras
· Website: fear-incorporated.com

· LinkedIn: Taras Wayner

· Instagram: @fear_incorporated

· Email: [email protected]