Chloe Adams
The Candler family is known for its association with Coca-Cola, as Asa Griggs Candler bought the Coca-Cola recipe and founded the Coca-Cola Company in 1892. Asa Candler gave most of his stake in the company to his five children in 1919, and they sold their shares to a group of investors led by Ernest Woodruff. The family then turned to real estate development and was responsible for several iconic Atlanta landmarks. However, the family has faced financial troubles in recent years, with the Atlanta Journal-Constitution reporting that the soda heirs' real estate development company lost $37.5 million to foreclosure during the recession. The current head of the family, 81-year-old Asa Griggs Candler V, has faced questions about his finances and debts.
| Characteristics | Values |
|---|---|
| Did the Candler family own Coca-Cola stock? | Yes, the family of Asa Candler owned Coca-Cola stock until 1919 when they sold the company. |
| Who did the Candler family sell the Coca-Cola stock to? | The Candler family sold the company to the Trust Co. of Georgia for $25 million. The new ownership group then sold the company to an Atlanta financial institution led by Ernest Woodruff. |
| Who were the shareholders at the time of the sale? | Charles Howard Candler, Asa G. Candler Jr., Walter T. Candler, William Candler, Lucy Beall Candler, John S. Candler, Samuel D. Dobbs, Frank M. Robinson, and Samuel L. Willard. |
| What did the shareholders receive? | Each shareholder received $10 million in preferred stock in the new company. |
| What happened to the Candler family after selling Coca-Cola? | The Candler family turned to real estate development and is responsible for several iconic Atlanta-area landmarks. However, the family has faced financial troubles in recent years, losing $37.5 million to foreclosure and dealing with creditors. |
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What You'll Learn
In 1919, Asa Candler gave most of his Coca-Cola stock to his five children
In 1919, Asa Griggs Candler Sr., an American business tycoon and politician, gave most of his Coca-Cola stock to his five children: Charles Howard Candler, Asa G. Candler Jr., Walter T. Candler, William Candler, and Lucy Beall Candler. Other shareholders at the time included John S. Candler, Samuel D. Dobbs, Frank M. Robinson, and Samuel L. Willard.
The decision to sell the company was not without controversy. Some sources suggest that the sale infuriated Asa Sr., and some of his children later regretted their decision as they watched the company become a global behemoth. However, their wealth grew as the stock price blossomed.
Asa Sr. had founded the Coca-Cola Company in 1892 after purchasing the recipe for $238.98 (or $2,300, according to some sources) from chemist John Stith Pemberton in Atlanta, Georgia. Over the next three decades, he grew the company exponentially, establishing the trademark and ensuring the carbonated soft drink was available in every state in the country.
In 1916, Asa Sr. was elected mayor of Atlanta, and in 1917, the Coca-Cola Company agreed to reduce the amount of caffeine in the drink by 50%. In 1919, Asa Sr. gave most of his stock in the company to his children, who promptly sold their shares to a consortium of investors led by Ernest Woodruff. The sale price was approximately $25 million, which would be worth more than $300 million in today's money.
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The children sold the company to Ernest Woodruff for $25 million
In 1919, Asa Candler gave most of his stake in The Coca-Cola Company to his five children: Charles Howard Candler, Asa G. Candler Jr., Walter T. Candler, William Candler, and Lucy Beall Candler. At this point, other shareholders included John S. Candler, Samuel D. Dobbs, Frank M. Robinson, and Samuel L. Willard.
The Candler children, along with the other shareholders, promptly sold the company to Ernest Woodruff and the Atlanta financial institution he led. Each shareholder received $10 million in preferred stock in the new company, which retained the name "The Coca-Cola Company". The sale price was approximately $25 million, which would amount to more than $300 million in today's money.
The decision to sell the company was reportedly a source of fury for Asa Candler, who had grown the company exponentially over the three decades of his ownership. Some of his children had also become disillusioned with the prospect of running the company.
The Candler family is responsible for several iconic Atlanta landmarks, including the Candler Building in Atlanta, which was completed in 1906 and is listed on the National Register of Historic Places. The family also remains well-known in the wealthy suburb of Sandy Springs.
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The Candler family sold their stake in Coca-Cola in 1919
In 1919, Asa Candler gave most of his stake in Coca-Cola to his five children: Charles Howard Candler, Asa G. Candler Jr., Walter T. Candler, William Candler, and Lucy Beall Candler. Other shareholders at the time included John S. Candler, Samuel D. Dobbs, Frank M. Robinson, and Samuel L. Willard.
The Candler children, who had become disillusioned with the prospect of running the company, promptly sold the company to the Atlanta financial institution, Trust Co. of Georgia, for $25 million. This was led by Ernest Woodruff, and each of the shareholders received $10 million in preferred stock in the new company, which retained the name Coca-Cola Co. and kept its headquarters in Atlanta.
The Candler family's decision to sell the company transformed Atlanta. Taking Coca-Cola Co. public in 1919 may have had the greatest impact on the city, creating wealth for many generations of Atlantans and making Atlanta part and parcel of the world's largest beverage company.
The Candler family's association with Coca-Cola began in 1889 when Asa Candler, who had bought the formula from John Pemberton, published a full-page advertisement in The Atlanta Journal, proclaiming his wholesale and retail drug business as the "sole proprietors of Coca‑Cola". Candler did not achieve sole ownership until 1891, and by 1892, his flair for merchandising had boosted sales of Coca‑Cola syrup nearly tenfold. He soon liquidated his pharmaceutical business and focused his full attention on the soft drink. With his brother, John S. Candler, John Pemberton's former partner Frank Robinson, and two other associates, Mr. Candler formed a Georgia corporation named The Coca‑Cola Company. Initial capitalization was $100,000.
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The family turned to real estate development
The Candler family is the founding family of Coca-Cola, one of America's most famous brands. However, they sold their stake in the company back in 1919 and turned to real estate development.
The family is responsible for several iconic Atlanta-area landmarks, including the Candler Building in Atlanta, the Candler Building in New York, and the Western Auto Building in Kansas City. Asa Griggs Candler, the founder of Coca-Cola, was also a property owner and passed this interest down to his children. In 1919, Asa Candler gave most of his stake in Coca-Cola to his five children: Charles Howard Candler, Asa G. Candler Jr., Walter T. Candler, William Candler, and Lucy Beall Candler.
The children then sold the company for about $25 million, which would be worth more than $300 million today, to a group of investors led by Ernest Woodruff. This decision is said to have infuriated their father, who believed that their best inheritance would be his "good name." Despite this, the family's wealth grew as the Coca-Cola stock price blossomed.
Led by 81-year-old Asa Griggs Candler V, the family has faced financial difficulties in recent years, losing $37.5 million to foreclosure since the economy tanked. They have been plagued by creditors as deal after deal has gone bust. However, Asa V remains optimistic about the future of Atlanta and his family's real estate business, insisting that they will rebound along with the city.
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The family has been plagued by creditors and bad deals
The Candler family, heirs to the Coca-Cola fortune, have indeed been plagued by creditors and bad deals. In 2012, the family lost $37.5 million in the foreclosure crisis. Led by 81-year-old Asa Griggs Candler V, a descendant of Asa Candler, the family's real estate business suffered during the Great Recession, with their fortune declining due to a series of failed deals.
Asa V faced scrutiny from creditors and lawyers regarding his debts and dwindling finances, including a $7.2 million debt. During a deposition, he was pressed on his understanding of loan defaults, revealing his financial troubles. The family's woes were attributed to a challenging economic climate, with banks providing inflated loans to competitors, only to be left with devalued properties when the economy stalled.
The Candlers' situation was not unique, as even the top 1% of American earners experienced a 37% decline in after-tax earnings between 2007 and 2009. Despite their struggles, Asa V remained optimistic about Atlanta's future and his family's prospects, determined to rebuild their wealth.
The family's history with Coca-Cola dates back to Asa Candler, who gained sole ownership of the soft drink company in 1892 for $2,300. He grew the company exponentially over three decades, establishing the trademark and nationwide availability. In 1919, he gave most of his stake to his five children, who promptly sold the company to a group of investors led by Ernest Woodruff for $25 million, equivalent to over $300 million today.
The decision to sell Coca-Cola disappointed Asa, and some of his children later regretted it as the company became a global powerhouse. However, their wealth grew as the stock price increased, and they shaped Atlanta through their generosity and leadership.
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Frequently asked questions
Yes, the Candler family owned Coca-Cola stock. Asa Griggs Candler, the founder of Coca-Cola, gave most of his stock to his five children in 1919.
Asa Griggs Candler and his five children: Charles Howard Candler, Asa G. Candler Jr., Walter T. Candler, William Candler, and Lucy Beall Candler.
In 1919, Asa Candler gave most of his Coca-Cola stock to his five children, who promptly sold the company to a group of investors led by Ernest Woodruff.
The Candler family turned to real estate development and are responsible for several iconic Atlanta-area landmarks. However, they have faced financial difficulties in recent years due to the foreclosure crisis and a series of failed deals.
