Letter to Morgan Stanley about Coke and CCE
on the way ...
In a recent interview (See:
Bill Pecoriello of Morgan
Stanley made some comments about Coke and Coca-Cola Enterprises (CCE).
"Pressure is clearly mounting on
Coke North America and CCE management."
CCE, the largest bottler of Coca-Cola products, is led
by President and Chief Executive John Alm.
The troubles also affect Coca-Cola North America, led by Don
CCE provided an update on its performance in
conjunction with an appearance at a conference in Boston. The
company said it expects sales volume to decline 3 percent to 4
percent in Europe in the third quarter. In North America, volume
should grow 1 percent to 2 percent.
CCE expects third-quarter earnings per share to fall
below Wall Street estimates of 51 cents. For the full year, CCE
anticipates earnings per share in the low- to mid-$1.30s, down
from previous guidance.
Later in the referenced article, Mr. Pecoriello states:
In North America, he had projected volume growth of 4
percent. "The U.S. is clearly a
disappointment, given the launch of Coke Zero and Diet
Coke with Splenda, along with Coke's heavy use of coupons" to
boost sales during the Fourth of July holiday, Pecoriello said.
Just for the record, Mr. Pecoriello is a spokesman for
Morgan Stanley, and many of you see their commercials on TV all the
time. It appears that Mr. Pecoriello and his company were surprised
by the poor showing of Coke and CCE in what they call North America.
Of course we are not, we know that our boycott Coke effort has
gathered enough steam to be a factor in "disappointing results."
We have never stated we would run these multi-billion dollar
multi-national corporations out of business, but we have said that
until they make restitution for their desecration of Southern
Heritage, retract their insults of calling us "disorganized
rednecks" and get out of politics we would continue to distribute
the Truth about their actions and quit buying their products. Well
even a freshman just finishing Marketing 101 has learned something
that the Coke management [sic] teams seems to have overlooked:
more products than
Of course Coke sales in what they call
North America are down! We live in what they call North America!
When thousands, many of whom were their most loyal customers quit
buying Coke products, it affects sales. Duh! No after three years
this now deserves a double Duh! So here is our analysis of the Coke
(and CCE) management [sic] team:
In a few more months they may advance to a
triple Duh! They think we are just unorganized rednecks (in their
own words) - to us they seem kinda "stupid."
Anyway back to Mr.
Pecoriello. We must wonder
if Mr. Pecoriello takes our effort into consideration when he looks
at Coke & CCE performance? Perhaps he is not aware of it. Coke and
CCE will not even acknowledge our letters to them, so it is doubtful
that they fulfill their fiduciary duty and disclose that they are
running off large numbers of their most loyal customers.
After a week of review, the letter below is
being mailed on September 19. In a week or so - some of you that
accounts with Morgan Stanley might want to see what they have to say
about Coke and CCE. Afterall they work "one client at a time!"
We thank all who commented on the proposed
In the meantime, continue to spread the
AND continue to get more signatures on:
The Coca-Cola Company Should Get Out of Politics Petition
725 Ridgeview Road
Morganton, Georgia 30560
September 19, 2005
New York, NY 10036
Dear Mr. Pecoriello:
This letter is in reference to your recent comments in an article in the Atlanta Journal Constitution, "
cuts sales, earnings projections; stock hammered" by Scott
Leith. In reading your comments in the article some had the
impression that you were surprised by the poor performance of
Coke and CCE in their "North American" unit.
Lower than expected performance in
"North America" has been a common theme in recent
financial reports - despite announcements
of "doubling" their advertising and release of new products.
Many in the financial community have also publicly called
their performance "disappointing."
As you are aware Coke for many years
had a very loyal customer base that would drink nothing else
by choice. But Coke has abandoned an increasing portion of
this very loyal customer base by trying to force a politically
correct agenda on an unwilling population. Specifically they
have denigrated Southern Heritage, even the factual history of
the inventor of Coke, participated in the secret deals to
steal the Georgia Flag and were very insulting when we made a
legitimate complaint. In fact they lied to us about their
participation in the Georgia Business PAC, even though the
campaign finance records are public record in Georgia. Then
stated via their customer service representative that we were
not worth listening to as we were just unorganized rednecks.
Since then they have failed to even acknowledge receipt of
While this direct political
involvement may not be of interest to you, perhaps the growing
number of citizens who are making a decision to not purchase
Coke products is of interest. It does not take a rocket
scientist to figure out that
buy more products than
rid of loyal customers has never been a very successful
We do not know nor make any specific
claim as to what portion of the "disappointing performance" is
the result of their management team's decision to use
corporate funds to discredit Our Heritage. But we do make the
statement that lost sales do
The unanswered communications with
Coke and CCE and the online petition (the paper petitions are
referenced in the communications) along with signatures and
comments are available for your inspection at
with several other web sites. The
just under 60,000 visits and the section dealing with Coke on
the http://spofga.org web site
is just over 190,000.
We hope that you find this
information of use in your effort to analyze and evaluate the
performance of both Coke and Coca-Cola Enterprises.
Should you have any questions do not
hesitate to contact our spokesman, Dr. William Swann.
cc: Mr. Scott Leith (Atlanta
E. "Neville" Isdell (CEO,