Ben Gilbert
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Appearances Over Time
Podcast Appearances
So this is actually something more that McDonald's does and less something that Coca-Cola does.
But boy, does it become important to Coca-Cola fast.
To illustrate it, if we flash all the way forward to today, there's a Coca-Cola executive on the website saying,
whose entire job is the McDonald's division of the Coca-Cola company.
There is no other division dedicated to a company like this.
So what happens is Ray Kroc, in 1955, one of the first things he does when he gets the expansion rights to expand McDonald's is to look for a beverage supplier for this new Illinois location that he is opening.
And he calls up Coca-Cola and does a handshake deal and meets in person and does a handshake deal with Waddy Pratt, who ran Coke's fountain division.
And from that point forward for like 40 years, they built this deeply entrenched relationship purely on a handshake deal.
But for a long time, it was McDonald's isn't going to bid it out like everyone else always does.
And they're going to get like amazing preferential treatment.
And here's some of the preferential treatment that they get.
Have you ever heard, David, that Coke tastes better when you get it from McDonald's?
People like insist that I prefer to swing by McDonald's to get a Coke versus getting it somewhere else.
And if you press, is it just that it's a fountain and you like fountain versus bottle or no, it's actually better at McDonald's.