4 ms·

So coca-cola has a legal monopoly on the use of an ingredient. Seems like pretty unfair business practices to me.

steve-howard 15y ago
I imagine it's possible for some competitor to set up a similar arrangement. The government just likes to make it a PITA.
- mcantelon 15y ago
  >I imagine it's possible for some competitor to set up a similar arrangement. In theory. Coca-Cola is rumored to be pretty friendly with US intelligence and would likely lobby against a competitor getting a similar coca import arrangement.
eli 15y ago
Sure, yeah, but lots of things you might want to do with a business require a permit or approval or waiver from the government. I'm not sure that is inherently unfair in practice.
- gerggerg 15y ago
  There is a huge difference between a permit and an agreement with the DEA.
  - eli 15y ago
    Uh, how so? You could request DEA permission too. There's a form on their website. (But be aware the application fee is nonrefundable.)
nknight 15y ago
Sounds like the Stepan Corporation has an effective monopoly on the manufacture of cocaine-free coca leaves. That really says nothing about a restriction on their use.
- gerggerg 15y ago
  "In fact, the United States (and most other nations) expressly prohibits the sale and trade of coca leaves. In order for Coca-Cola to continue to exist in its current form, the company has a special arrangement with the Drug Enforcement Administration" The article makes it seem as though Coca-Cola has an exclusive arrangement that involves funneling leaves through a chemicals company. It doesn't mention anything about Stepan being the only chemical company that can process the leaves for other reasons.
  - sanswork 15y ago
    It doesn't mention anything about it being exclusive either. Just special.
wmf 15y ago
I wonder if the coca leaves could be processed outside the US and then imported.
tptacek 15y ago
Coca-Cola's market dominance probably has epsilon to do with their formulation.
- gerggerg 15y ago
  I can't tell if you're being sarcastic, but if not, why then would they regard their formula as such a secret that the only two people allowed to know it may not fly together in case the plane should go down? As a diversion form their business practices?
  - joeyh 15y ago
    It's a marketing tactic.
    - brk 15y ago
      This. Especially when it also mentions the recipe is stored in a vault. BOTH recipe mixers could instantly cease to exist and the Coca Cola company would not miss a beat in terms of selling mass quantities of their product.
  - philwelch 15y ago
    Brand mystique?
- spindritf 15y ago
  Probably but it's still unfair (if the deal really is exclusive). It's also interesting how many goods are never invented due to the fact that experimenting with many substances is prohibitively expensive.

I imagine it's possible for some competitor to set up a similar arrangement. The government just likes to make it a PITA.

mcantelon 15y ago
>I imagine it's possible for some competitor to set up a similar arrangement. In theory. Coca-Cola is rumored to be pretty friendly with US intelligence and would likely lobby against a competitor getting a similar coca import arrangement.

eli 15y ago

Sure, yeah, but lots of things you might want to do with a business require a permit or approval or waiver from the government. I'm not sure that is inherently unfair in practice.

gerggerg 15y ago
There is a huge difference between a permit and an agreement with the DEA.
- eli 15y ago
  Uh, how so? You could request DEA permission too. There's a form on their website. (But be aware the application fee is nonrefundable.)

nknight 15y ago

Sounds like the Stepan Corporation has an effective monopoly on the manufacture of cocaine-free coca leaves. That really says nothing about a restriction on their use.

gerggerg 15y ago
"In fact, the United States (and most other nations) expressly prohibits the sale and trade of coca leaves. In order for Coca-Cola to continue to exist in its current form, the company has a special arrangement with the Drug Enforcement Administration" The article makes it seem as though Coca-Cola has an exclusive arrangement that involves funneling leaves through a chemicals company. It doesn't mention anything about Stepan being the only chemical company that can process the leaves for other reasons.
- sanswork 15y ago
  It doesn't mention anything about it being exclusive either. Just special.

wmf 15y ago

I wonder if the coca leaves could be processed outside the US and then imported.

tptacek 15y ago

Coca-Cola's market dominance probably has epsilon to do with their formulation.

gerggerg 15y ago
I can't tell if you're being sarcastic, but if not, why then would they regard their formula as such a secret that the only two people allowed to know it may not fly together in case the plane should go down? As a diversion form their business practices?
- joeyh 15y ago
  It's a marketing tactic.
  - brk 15y ago
    This. Especially when it also mentions the recipe is stored in a vault. BOTH recipe mixers could instantly cease to exist and the Coca Cola company would not miss a beat in terms of selling mass quantities of their product.
- philwelch 15y ago
  Brand mystique?
spindritf 15y ago
Probably but it's still unfair (if the deal really is exclusive). It's also interesting how many goods are never invented due to the fact that experimenting with many substances is prohibitively expensive.