Case Study on
Objectives & Management
Roles to Achieve the
History of the Organization
Royal Crown Company Inc., originally called the Union Bottling Works, was born in Columbus, Ga. in 1905. A young graduate pharmacist, Claud A. Hatcher, began creating his own soft drinks in the basement of his family's wholesale grocery business. From these humble beginnings, Royal Crown Cola Co. grew to be the third largest soft drink company in America.
At first, the Hatcher Grocery Co. purchased bottled drinks from a local bottler and resold them to its grocery customers. As this part of the business grew, Mr. Hatcher insisted that the bottler pay the company a commission or compensate him in some way for handling the drinks. A dispute arose and Mr. Hatcher concluded that his company had purchased its last case of drinks from an outsider. Henceforth, it would produce and bottle its own drinks under its own labels.
The first line of beverages was named Royal Crown, and the first cola drink that he devised was called Chero-Cola. Subsequent generations were to apply the Royal Crown trademark to a cola, and it was to become so important that the corporation would be renamed "Royal Crown Cola Co."
Shortly after the Hatcher Grocery Company decided to engage in the manufacture of soft drinks, its officials organized the wholly owned Union Bottling Works. The manufacture and bottling of soft drink syrups continued. Within the framework of the Union Bottling Works until 1912, when the newly organized Chero-Cola Co. took over the business and vastly expanded it
Among the early products were Royal Crown Ginger Ale, Royal Crown Strawberry, Royal Crown Root Beer and Chero-Cola. As the sales of carbonated beverages by the Hatcher Grocery Co. became more important, it was decided to incorporate the CheroCola Co. In 1912, Judge S. Price Gilbert in Muscogee County Superior Court of Columbus granted a charter. The company was to manufacture a line of syrups and flavor concentrates to be sold to franchised bottlers who bottle and sell these concentrates and syrups
In April of 1914, Chero-Cola Co. filed application in the United States Patent Office to register its trademark, Chero-Cola. The Coca-Cola Company then instituted a lawsuit that lasted for more than nine years.
In fact, litigation concerning the use of the company's trademark continued in one form or another until 1944 when the final victory was won by Royal Crown Cola Co., setting for all times its right to use the word "cola" in the name of its beverages. The years 1914 1920 showed steady, but at times, rapid growth in sales. Both profits and company assets increased steadily.
In 1994, Mr. M. A. Hashem, Chairman of Partex Group visited an International Trade Exhibition in the US, where he happened to meet the executives of Royal Crown Cola Co. International. From then on he started conceptualizing the idea of “RC” beverage brand in Bangladesh. With international brand name recognition and quality he expected that it would gain acceptability in the Bangladesh market.
When he returned, Partex as well as RC International carried out a wide range of marketing research. After positive results, in 1996, the Corporate Head and the Directors formed Partex Beverage Ltd. Mr. Rubel Aziz, one of the pioneers of the concept of RC, was given the position of Managing Director. Funds worth Tk. 10 Crore were raised as part of Equity from the Group. Although registered as a Public Limited Company, no public offerings have been made as yet. The factory was setup in Rajendrapur, 40km away from Dhaka city. The company commenced commercial production on 6th October 1997, and RC was launched in Dhaka on 20th October 1997. This is the story of how Partex Beverage Limited became the sole official bottler of Royal Crown Cola Co. International.