The Power of Coke in Madagascar

Madagascar is the world's largest producer of Vanilla in the world. In 2005, they produced over 40% of the world's supply. India was second, at 27%, followed by China at 14%. Mexico, the native country of the vanilla bean, only produced 3% of the world supply, the same amount as Turkey.

The Coca-Cola Corporation is the world's largest customer of natural vanilla extract. When New Coke was introduced in 1985, the economy of Madagascar crashed, and only recovered after New Coke flopped. This is because New Coke used vanillin, a less expensive synthetic substitute, and purchases of vanilla more than halved during this period. It's amazing how dependent an entire country can become on 1 company.

By 2002, the company introduced Vanilla Coke. In 2004, sales of Vanilla Coke dropped from 90 million cases its first year to only 35 million. Diet Vanilla Coke went from 23 million cases to just 13. Both producta were discontinued in Nov. 2005 in the UK and US. But don't worry Madagascar, they've just introduced Black Cherry Vanilla Coke.