Authors: Tristan Donovan
Born and raised in Monroe, North Carolina, Lee grew up dreaming of writing literary novels and leaving an impression on the world. “I feel that to work just for money's sake would be a desecration,” the idealistic youth once wrote to his mother. “I want to do something really worthwhile. I would die happy if it should be just one recognized and lasting thing.” Lee's search for greatness took him into journalism, but after several years as a reporter he made the leap into advertising by joining Coca-Cola's ad agency D'Arcy, where he took charge of the Coke account in 1923. Today Lee's approach seems obvious, but in the 1920s it was groundbreaking. Most advertisers were still stuck in a rut of verbose text-heavy promotions that often resorted to dry, functional detail or to scare tactics to win business. Lee had little time for such approaches. “The offering of a product is blunt selling,” he wrote in a 1945 letter summarizing his beliefs about advertising. “Presenting the idea from the consumer angle is using imagination.”
He presented Coca-Cola not as a mere beverage that would quench your thirst but as something symbolic of innocent everyday pleasure. He commissioned artists such as Norman Rockwell and McClelland Barclay to paint scenes of happy times, sociability, and rural tranquility that he then complemented with a message condensed into a bite-size slogan, short enough for motorists to absorb from a roadside billboard in a single glance. Messages like “Thirst knows no season” and “6,000,000 drinks a day.”
Simple, eye-catching, and backed with a budget capable of putting these ads in front of millions of eyeballs, Lee's creations set the tone for the future of advertising. Lee's most memorable slogan, “The pause that refreshes,” came in 1929. It and the myriad variations on that theme he created captured the public imagination so effectively that the company was still using the slogan twenty years later. Its impact was still being remembered seventy years on, when the industry journal
Advertising Age
named it one of the ten best campaign slogans of the twentieth century.
Lee's gentle nostalgia and positive sell captured something about the American spirit, and as the 1920s went on, people began more and more to think of Coca-Cola as representative of America. People began talking about things being “as American as Coca-Cola,” and in the southern states Coca-Cola cake, a moist chocolate cake made with the soda, became a common sight at picnics and church events. The suspicion that surrounded the drink before the First World War was gone. Now Coca-Cola was part and parcel of American life. Nothing illustrated this change in public attitudes as much as the reaction to the news that the Women Christian Temperance Union of Arkansas City would devote 1929 to stamping out the “hydra-headed menace of Coca-Cola.” Instead of finding the public rallying to their crusade, the temperance activists watched their short-lived campaign get lampooned in the newspapers and dismissed as a joke.
Many of Lee's campaigns drew on the insights that came from Coca-Cola's statistical department, another of Woodruff's innovations. Formed in 1923, the department brought a scientific edge to the company's operations. It gathered vast amounts of data about traffic patterns in towns and cities throughout the United States, so that the company could pinpoint exactly which billboards would have the most impact. It identified the most valuable retailers in the country so Coca-Cola's sales force could visit them twice as often as less lucrative stores. It analyzed the shopping habits of forty-two thousand drugstore customers and then used the results to teach soda fountain operators how to sell more Coca-Cola and how to encourage Coke drinkers to buy additional items. The statisticians also enabled the company to start accurately predicting future sales and profitsâno mean feat for a company of Coca-Cola's size in a computerless age. And in late
1928 Coca-Cola's statistical department sent a warning to Woodruff that an economic crash was coming.
The soda pop giant's numbers men were right. The Roaring Twenties had been a decade of speculation, excess, and a widespread belief that share prices would keep going up and up and up. But this party came to a screeching halt in October 1929 when the stock market crashed. In the space of a week millions were wiped off the value of stocks, erasing personal and business fortunes. To recover from the losses US banks began refusing to lend money to Germany to help it rebuild, prompting the German economy to collapse, which frightened American shareholders even more. Soon there were runs on the struggling banks, and businesses across America started going bust, leaving millions out of work. The Great Depression had begun.
As the economic crisis deepened, people stopped buying soda as they tried to make ends meet. Soon the soda fountains and retailers that the fizzy drink industry relied on were going under in the thousands. “There has been a tremendous loss in outlets,” Coke's vice president of sales Harrison Jones told Woodruff in a 1932 memo. “We have found that practically all bottlers are experiencing an inability on the part of many of their small outlets to buy more than one case and pay cash. In many cases, when the truck calls in the morning, the dealers are required to ask them to come back later in the day, until such time as they can get enough money to pay the cash for a case of Coca-Cola.”
Coca-Cola responded with more advertising. While Moxie and others slashed back their advertising budget, Woodruff kept spending bigâa move that made Coca-Cola even more visible than ever. “In the last four years there has been less advertising of every kind and character than at any time in fifteen years,” wrote Jones. “Since we maintained our advertising showings in all media we have stuck out as a sore thumb, and have been more dominant unquestionably than at any time before in our history.” The company's ad budget went further too. Billboard owners didn't have enough advertisers to fill their boards, so instead of leaving their poster sites vacant, they gave Coca-Cola space for free, enabling the company to blanket America in Lee's visions of a happier America.
Lee fulfilled his end of the bargain by finally producing a campaign good enough to convince people that Coca-Cola was an all-year-round drink rather than a summer treat with a series of Christmas ads painted by Haddon Sundblom. Born in Muskegon, Michigan, in 1899, the Swedish American artist had already made his name in advertising with his work for Maxwell House and Palmolive by the time Lee asked him to illustrate Coca-Cola's 1931 Christmas ad. Lee wanted an illustration of Santa Claus having a refreshing pause with a Coca-Cola, and Sundblom was happy to oblige for the appropriate fee. Partially inspired by Clement C. Moore's poem “A Visit from St. Nicholas,” Sundblom painted a smiling, ruddy-faced Santa toasting the audience with a glass of Coca-Cola. He modeled the character on his retired friend Lou Prentiss. “He embodied all the features and spirit of Santa Claus,” Sundblom explained. “The wrinkles in his face were happy wrinkles.” The advertisement proved so successful that Coca-Cola made its Santa advertisement an annual event, with Sundblom illustrating every one of them until 1964.
It is often claimed that Sundblom's ad created the look of the modern-day Santa Claus with his red suit, black leather belt, white beard, and bobble hat. But the reality was that Sundblom simply latched onto the emerging consensus about how Santa looked. Traditionally Santa and his European forerunners had come in all shapes and sizes. Sometimes he was tall and skinny; at other times he was the squat, pipe-puffing elf from Moore's poem. Santa's garb also varied from the bishop's clothing of the Dutch Sinterklaas, who would kidnap naughty children, to Britain's Father Christmas, who wore green robes, to the present-day red-and-white outfit. Despite Santa's mixed-up origins in folklore, paganism, and Christianity, by the time Coca-Cola hired Sundblom, the idea of St. Nick as a fat man with a big white beard dressed in red was already becoming the archetype of the Yuletide gift giver.
In fact, not only was Sundblom's depiction simply tapping into a wider trend, but this popular vision of Santa had even been used to promote soda pop before. The Santa in White Rock's 1915 Christmas ads looked much like Coca-Cola's Santa, although he preferred to make his festive deliveries of the Wisconsin soda firm's drinks by automobile or biplane rather than
by sleigh and magic reindeer. A few years later in 1923, White Rock was running Christmas ads in color magazines showing a Santa almost indistinguishable from Sundblom's enjoying a whiskey and a White Rock ginger ale while catching up on his mail. Luckily for Santa, Prohibition didn't apply in Lapland. But while Coca-Cola's Santa was not by any stretch of the imagination the origin of the modern-day St Nick, it probably sealed the deal once and for all with its ubiquitous year-in, year-out Christmas advertising muscle.
Not that all its extra advertising, Coke-guzzling Santas, and statistical wizardry worked miracles. Coca-Cola sales flatlined in the Depression, the growth of the 1920s replaced with stagnation. Compared to most of its rivals, though, this was a good result. Charles Hires watched sales of his root beer fall off a cliff, dropping 60 percent between 1930 and 1935. Nor were sales of Hires's temperance drink helped by the end of Prohibition in April 1933. The noble experiment had proved little more than the naïveté of the temperance campaign. In the hope that the return of the liquor industry could help the moribund economy, the federal government consigned the Volstead Act and Eighteenth Amendment to the trash can of history.
The return of alcohol worried the soda industry. In the first six months of Prohibition, soda sales leapt by 200 percent and kept rising all the way up to the Great Depression. The question now haunting the industry was whether the repeal of Prohibition would reverse all of that. Would people still want a Coke when beer was readily available? Would they still need ginger ale in their drink when distilled liquor didn't taste like gasoline? The breweries hoped not. Schoenhofen Edelweiss greeted the end of Prohibition by sidelining Green River, the soda that saw it through the dry years, and refocusing on beer. Soon the breweries that survived by making smoked ham and ice cream were poised for a glorious return.
At Coke, vice president of sales Harrison Jones was particularly twitchy. He wrote to Woodruff warning that the brewers would be a serious threat to Coca-Cola. They were buying ads like crazy, he noted in one memo. In another he urged Woodruff to launch a Coca-Cola beer to grab a share of the expected post-prohibition liquor boom. Woodruff dismissed the proposal. Coca-Cola made Coca-Cola, nothing else. At first it looked as if Jones
was right. After several years of flat sales, 1934 saw Coca-Cola's revenues dip by about 25 percent to $31.2 million. But the hit was short-lived, and in 1938 the company's annual sales reached a new high of $75.8 million. Coca-Cola had survived once again.
Coca-Cola wasn't the only soda company to buck the trend for decline in the Depression. Another success story was the lemon-lime drink 7Up. Its creator Charles Leiper Grigg was born in 1868 in a log cabin in Price's Branch, a tiny hamlet in Montgomery County, Missouri, with a population of just twenty-five people. As a child Griggs became obsessed by mail-order catalogs and the array of wonderful goods on offer within their appealing pages. He was still obsessing about catalogs at the age of twenty-two when he wrote to a St. Louis mail-order company to tell them that their catalog wasn't up to scratch and explained how it could be improved. “If you think you can do better, come to St Louis and do it,” the firm replied. So he did.
Grigg spent the next three decades working in various St. Louis companies. In 1918, he ended up as an advertising executive for Whistle Orange Soda, the creation of local businessman Vess Jones. But Grigg didn't get along with his new boss, so in 1919 he walked and started work on an orange soda of his own. He obtained funding for the new company from his friend Edmund Ridgway, who had made his fortune investing in mining. In 1920, Grigg launched Howdyâa lightly carbonated but very sweet orange-flavored soda. Although Griggs and Ridgway had built a network of nearly four hundred bottlers by the mid-1920s, Howdy struggled, overshadowed by the rapid rise of Orange Crush, a rival orange soda from Chicago. Orange Crush was booming on the back of doctors recommending orange juice as a source of vitamin C, because the soda contained orange juice rather than the essential oils of the fruit's peel that were used in Howdy. Grigg found his beverage under attack from rivals for its lack of juice, and new laws forced him to label Howdy an
orange-flavored
drink rather than an orange drink. He hated the obsession with juice and pulp, and he refused to change How-dy's formula “simply in order to line up with a pseudo-consumerist notion that the addition of orange juice makes a better product.”
But the market had spoken, and by 1927 Grigg had started searching for a new drink to make his millions. He settled on the idea of creating a lemon
soda. As one of the simplest flavors around, lemon sodas abounded, with around six hundred brands on sale in the United States alone during the late 1920s. But Grigg saw opportunity in this fiercely competitive sub-market due to the lack of a market leader. Grigg spent months perfecting his new drink, eventually settling on a lemon and lime flavored beverage that fizzed more than the average soda.
The drink also harked back to soda's origins in patent medicine thanks to the inclusion of a trace of lithium citrate. Although better known today as an antidepressant, lithium's use in pharmacology only began after World War II. Lithium's main medical use in 1929 was as an alternative to table salt in the wake of research linking salt with hypertension and heart disease. This ill-advised substitution would continue until evidence of severe side effects and deaths prompted an outright ban on the sale of lithium salts in 1949; the ban also forced the removal of the substance from Grigg's drink.
But in 1929 this was all to come, and Grigg was keen to highlight the alkali metal's presence in his new drink, so much so that he named his beverage Bib-Label Lithiated Lemon-Lime Soda. Someone must have had a quiet word, though, because shortly after its October 1929 launch Grigg changed the name to 7Up. Why Grigg picked 7Up remains a mystery, but there's no shortage of speculation. Some stories say Grigg got his inspiration while gambling with cards or dice. Another claims he saw a cattle brand with the shape of a seven and a
u,
while another tale suggested the seven represented the number of ingredients and the up referred to the fizz. Whatever the reason, looking back everything seemed stacked against 7Up.