Western Megacorporations and Chinese Medicine
Western Megacorporations and Chinese Medicine
Published on August 6th, 2009 @ 01:18:50 pm , using 551 words, 963 views
by Eric Brand
How many of us hear the name Coca-Cola and think of Chinese medicine? Sure, Coca-Cola is a drink with an herbal history, and it is a business-savvy international enterprise. But a major player in the world of Chinese medicine?
Not surprisingly, Coca-Cola has been giving careful consideration to strategies for penetrating the lucrative Chinese domestic market. While both Coke and Pepsi have each had a certain degree of success in China, the local appetite for their intensely sweet hallmark beverages has been a bit lackluster relative to their success in other nations. Market research clearly illustrates that the Chinese population enjoys herbal beverages and health drinks such as hawthorn juice. Thus, why not branch into herbal medicine drinks?
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Coca-Cola made headlines in 2007 when they announced the opening of a Beijing-based research center for traditional Chinese medicine. Connected to the China Academy of Chinese Medical Sciences and China’s Ministry of Public Health, this research institute aims to develop beverages that have both great taste and medicinal benefits. In July of 2007, they invested $80 million into non-carbonated drink research at their facility in Shanghai. (Here is a link to a Reuters news article on this topic)
Already one can see a plethora of herbal drinks on the shelves at 7-11s throughout Hong Kong and China that bear the Coca-Cola trademark. Selections range from cooling teas with Xia Ku Cao (Prunellae Spica) and Ji Gu Cao (Abri Herba) to lung-moistening beverages with Bai Mu Er (Tremella), Bai He (Lilii Bulbus), and Asian Pear (Xue Li). They make qi-supplementing drinks with things like Xi Yang Shen (Panacis Quinquefolii Radix) and Hong Zao (Jujubae Fructus). Indeed, Coca-Cola is proving to be quite adaptive in the Asian market, and I have to say that their herbal beverages taste great.
Coca-Cola is a company with deep roots in herbal medicine. Their original recipe is a closely-guarded trade secret, but analytic chemistry by independent researchers suggests that it contains Chinese medicinals like albizzia (He Huan Pi/Hua) and cinnamon (Rou Gui/Gui Zhi), in addition to many other herbal extracts. Even the name Coca-Cola is related to its early herbal recipe, which contained cocaine from coca leaves and caffeine from the kola nut. Cocaine was removed from the recipe over 100 years ago, but coca leaves (with the cocaine removed) still contribute to Coca-Cola’s distinctive flavor today.
Given Coca-Cola’s long history of herbal extract use, it should hardly be a surprise that they are dabbling in Chinese medicine. In fact, it is even possible that Coca-Cola may someday make a major contribution to Chinese medicine. If they can effectively design and market a formula with proven health benefits, it could increase awareness of the power of Chinese herbs worldwide.
Beyond Coca-Cola, we see a number of large Western corporations unrolling products with Chinese medicinals, especially in Asia. For example, I have a tube of Colgate toothpaste from Thailand that is made with the addition of Jin Yin Hua (Lonicerae Flos) and Zhen Zhu (Margarita), pictured above. The ingredients are listed by their English names, honeysuckle and pearl powder. The toothpaste costs only 50 cents and it tastes wonderful.
To read more about the herbal beverages found on the market in Hong Kong, Guangzhou, and Taiwan, click this link. Thanks for visiting the Blue Poppy blog!
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Someone asked me recently how I could have any positive feelings about a company like Coca-Cola getting involved with Chinese medicine. True, Coca-Cola is often the big bad wolf when it comes to exporting America's sugar epidemic, and they generally profit off of a product that is fundamentally harmful if consumed in excess. My friend was concerned that they would try to patent Chinese herbs and use their corporate might in ways that may not be supportive of Chinese medicine.There is a similar scare with the FDA clinical trials of Xiao Chai Hu Tang, which would essentially allow it to be used as a prescription drug in the US. However, Chinese medicinals cannot be patented. Natural products themselves and classical recipes cannot be patented, only the extraction technique used by the pharmaceutical company can be patented.
I don't think there is any reason to be alarmed about Coca-Cola. They have old roots in the herbal medicine business, they were one of the original "patent medicines." They recognize that the market demand for drinks in China requires less sugar and a more herbal flavor than the US market desires, and they are simply trying to adapt so that they can pioneer a new market. If indeed they do produce research that shows that Chinese herbal drinks help certain conditions, I'm all for it. The herbs will still be available, and Coca-Cola will not be the only source of them. The only downside is that larger scale consumption might drive up the price, like we have seen with Gou Qi Zi in recent years.
Incidentally, Coca-Cola's recent attempt to gain greater dominance in market share in China by buying local megabrand Hui Yuan got rejected by the Chinese courts. This shows that China remains sensitive to foreign companies dominating the landscape, and I think that no matter how much clout Coca-Cola has, they still will not be able to take Chinese herbs away from Chinese doctors. To me, this is just an ungrounded fear.
If you try the Chinese herb drinks by Coca-Cola, they are a positive direction. Less sugar, more wholesome. I can't see getting upset with Coca-Cola when they are actually improving their product and funding Chinese medical research.
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