Coca-Cola Bottling Co. of Minnesota, Inc. v. Coca-Cola Co.

164 F. Supp. 293, 1957 U.S. Dist. LEXIS 2596
CourtDistrict Court, D. Minnesota
DecidedDecember 27, 1957
DocketCiv. A. No. 5269
StatusPublished
Cited by2 cases

This text of 164 F. Supp. 293 (Coca-Cola Bottling Co. of Minnesota, Inc. v. Coca-Cola Co.) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Coca-Cola Bottling Co. of Minnesota, Inc. v. Coca-Cola Co., 164 F. Supp. 293, 1957 U.S. Dist. LEXIS 2596 (mnd 1957).

Opinion

NORDBYE, Chief Judge.

Plaintiff seeks a judgment of this Court declaring that it is entitled under its present bottling franchise with defendant to fill the so-called pre-mix container with the soft drink known as Coca-Cola and to vend the same in a pre-mix machine without further contractual authorization. The issues require a recital of some of the historical background and reference to the events and development of the Coca-Cola industry, as well as consideration of the terms of plaintiff’s franchise.

In the year 1892, one Asa G. Candler was the sole owner of the secret process and method of making a syrup used in the preparation of the drink called Coca-Cola. In that year, Candler formally transferred the ownership of the process to The Coca-Cola Company, a Georgia corporation. At this time, the venture of bottling soft drinks was in its infancy, and Coca-Cola syrup was used mainly in a mixture of carbonated water at the conventional soda fountain. In 1899, practically all of the customers of The Coca-Cola Company were the soda fountain owners, with the exception of a few isolated concerns which were experimenting with the bottling of the soft drink. The Coca-Cola Company confined its business to the selling of the syrup to those who were in the soda fountain business and was not particularly interested in furthering the bottling end of the business. On July 21, 1899, The Coca-Cola Company entered into a contract with J. B. Whitehead and B. F. Thomas in which these parties obtained the exclusive bottling rights of Coca-Cola in the United States, except a few States not here material, and any doubts as to its perpetuity has been forever set at rest by appropriate recitals entered into thereafter by the necessary parties. The Candler company, however, retained the sole and exclusive right to sell the Coca-Cola syrup to the soda fountain trade. Whitehead and Thomas formed Coca-Cola Bottling Company, which corporate name was changed subsequently to Coca-Cola Bottling Company (Thomas) Inc., and assigned their contract with The Coca-Cola Company to that corporation. On April 20, 1900, Coca-Cola Bottling Company assigned part of its territory to Whitehead and Lupton, who formed a corporation in 1901 known as The Coca-Cola Bottling Company. On October 1, 1905, The Coca-Cola Bottling Company assigned its rights to Western Coca-Cola Bottling Company in certain designated [295]*295territories, including the State of Minnesota. In this contract, Western succeeded to all the rights of a bottler in its territory which had been conveyed by The Coca-Cola Company in 1899. On January 27, 1919, Western Coca-Cola Bottling Company granted a franchise to bottle Coca-Cola in certain counties in Minnesota to three individuals who in May, 1919, assigned these rights to Coca-Cola Bottling Company of Minnesota, Incorporated, the plaintiff in this action.

Defendant is a Delaware corporation, and it has purchased all the assets and assumed all the liabilities of The Coca-Cola Company, the Georgia corporation; hence, it has the same name as the original Candler company. The so-called bottling territory originally granted by The Coca-Cola Company was assigned and divided among six different companies. These six companies generally have been referred to as the parent bottlers, but for many years prior to this litigation, they had ceased their actual bottling activities and had limited their participation in the Coca-Cola industry to the buying of syrup from The Coca-Cola Company and reselling it to the actual bottlers. It appears that the defendant, as of this date, has purchased and liquidated all of the parent bottlers, including Western, except Coca-Cola Bottling Company (Thomas) Inc. The pertinent portions of the franchise under which plaintiff now operates, except as to the territory granted and provisions relating to price of the syrup, read as follows:

“That Whereas, Party of the first part has received from The Coca-Cola Company certain rights and privileges in regard to the bottling and selling of bottled Coca-Cola; and
“Whereas, Party of the first part wishes to convey to party of the.second part the rights that it has received from The Coca-Cola Company, limited, however, to the following described territory, to-wit: Minneapolis & the Counties of Hennepin, Ramsey, Anoka, Dakota, Wright, Carver, Scott, Chicago, Isanti, Sherburne, Benton, Washington, Meeker, McLeod, Pine, Mille Lacs & Goodhue.
“And Whereas, Party of the second part is desirous of obtaining the right to bottle Coca-Cola in the territory hereinbefore described:
“Now, Therefore, For and in consideration of mutual benefits and promises from one to the other, and other valuable consideration, the receipt of which is hereby acknowledged, It Is Agreed:
“First: That the party of the first part hereby gives and conveys to party of the second part the right that it received from The Coca-Cola Company, to use the trade-mark name Coca-Cola, and all labels and designs pertaining thereto, in connection with the product ‘Bottled Coca-Cola’ in the territory hereinbefore described, and party of the first part agrees not to convey, assign or transfer the right of usage of said name in said territory to any other party whatsoever; and said party of the first part agrees to obtain and furnish to party of the second part, and only to obtain, for the territory herein referred to, sufficient syrup for bottling purposes to meet the requirements of party of the second part in the territory herein described, provided party of the first part can obtain such syrup from The Coca-Cola Company. Nothing herein, however, shall give party of the second part any interest in the name Coca-Cola, labels, etc., except the right of usage in connection with Bottled Coca-Cola, nor shall this contract in any way interfere with the use of said name Coca-Cola, labels, etc., in connection with the fountain product of The Coca-Cola Company, it being understood and agreed, that the use herewith given shall be confined to the bottled product; the name, labels, etc., in connection with the fountain product having been reserved by The Coca-Cola Company.
“Second: Party of the first part does hereby select party of the second part as its sole and exclusive customer and licensee for the purpose of bottling and selling the Bottlers’ Syrup Coca-Cola, in the territory herein described.
“Third: Party of the first part does hereby give to party of the second part [296]*296a license to use the distinctive Coca-Cola bottle adopted or to be adopted within the territory herein referred to, but said right shall end at such time as this contract is no longer in force or when it shall be terminated by the parties hereto or otherwise, provided, however, all conditions and terms of this contract are fully complied with by party of the second part.
“Fourth: * * * party of the second part agrees:
* * *
“(b) Not to sell Bottlers’ Coca-Cola in syrup form, and not to bottle any Coca-Cola syrup that is made for fountain purposes.
“(c) To bottle Coca-Cola in the following manner. To have it thoroughly carbonated, put in bottles, using one ounce of Bottlers’ Coca-Cola syrup in a standard Coca-Cola bottle, using a decorated crown stopper thereon, * * * .

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Cite This Page — Counsel Stack

Bluebook (online)
164 F. Supp. 293, 1957 U.S. Dist. LEXIS 2596, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coca-cola-bottling-co-of-minnesota-inc-v-coca-cola-co-mnd-1957.