Coke to build new technology thinktank
technology start-ups get off the ground. The move is part of an
overall strategy at the soft...
Coca-Cola has formed a separate company, Fizzion, to help technology start-ups get off the ground. The move is part of an overall strategy at the soft drinks company to bring in new technologies and ideas as it restructures, the Financial Times reports. Coke is to house 10 to 15 companies at its Atlanta facilities to help nurture their business ideas, which must be applicable to the beverage industry. According to the newspaper report, Douglas Daft, chairman and chief executive of Coca-Cola, is aiming to transform the soft drinks company into an all-beverage corporation, and he has stressed the need to tap outside sources for ideas. "The range of ideas we are looking for goes all the way from applications on how to make packages more environmentally friendly to how to better market or sell in the e-commerce world," said Chris Lowe, the president and chief executive ofFizzion. The business plans would not involve developing ideas for actual drinks, which ishandled mostly by Coke's beverage innovation centres around the world. In exchange for helping "incubate" the start-ups, Coke will get a 12 per cent stake in each company. Coke stipulates each start-up must have a capitalisation of no more than $1m and employ less than 10 people. Mr Lowe says Coke would get first rights to test the new business ideas from Fizzion, though it is not vying for exclusivity.