J. Paul Austin
J. Paul Austin | |
|---|---|
| Born | Template:Birth date LaGrange, Georgia, U.S. |
| Died | December 26, 1985 (aged 70) |
| Occupation(s) | Businessman, corporate executive |
| Years active | 1949–1981 |
| Known for | Chairman, President, and CEO of The Coca-Cola Company (1962–1981) |
John Paul Austin (February 14, 1915 – December 26, 1985) held the positions of Chairman, President, and CEO at The Coca-Cola Company from 1962 until 1981, during which time he propelled the company's global sales from $567 million to $5.9 billion.
Early life
Austin was born in LaGrange, Georgia, as the son of an executive at Callaway Mills. His education included attendance at Culver Academies and Phillips Academy, culminating in a Liberal Arts degree from Harvard University in 1937. While at Harvard, he was a member of the rowing team and competed in the 1936 Berlin Olympic Games. He continued his studies by obtaining a law degree from Harvard Law School in 1940.
During the Second World War, Austin served in the Pacific theater as a Naval Intelligence Officer, attaining the rank of lieutenant commander and being awarded the Legion of Merit.
Early career
After practicing law at the New York firm Larkin, Rathbone & Perry, Austin joined Coca-Cola’s legal team in 1949. He began his corporate journey in Chicago, where he managed bottling plant acquisitions and gained practical experience by performing various roles within bottling operations and working as a route salesman—experiences that shaped his management philosophy.
In 1950, he married Jeane Weed, a secretary at Coca-Cola; together they had two sons.
Austin's career advanced swiftly: he became assistant to the president of Coca-Cola Export Corporation in 1950, was appointed vice president responsible for African markets based out of Johannesburg in 1954, promoted to executive vice president of the Export Corporation in 1958, and then elevated to president in 1959. By May 1961, he was elected executive vice president of The Coca-Cola Company.
President, CEO and Chairman of Coca-Cola
Paul Austin assumed the presidency of Coca-Cola in May 1962, taking over from Lee Talley. He was named CEO in 1966 and took on the chairman role in 1970. Austin retired in 1981, with Roberto Goizueta succeeding him.
Throughout Austin's leadership, Coca-Cola's profits surged from $46.7 million on $567 million sales in 1962 to $481 million on $5.9 billion sales by 1981—an increase by a factor of ten. His era also featured memorable marketing campaigns such as the iconic 1971 "Hilltop" advertisement showcasing "I'd Like to Buy the World a Coke", which cemented Coca-Cola’s enduring global brand identity.
Expansion of Coca-Cola worldwide
Austin played a pivotal role in broadening Coca-Cola's international presence by entering markets with challenging diplomatic ties to the United States. Notably, he introduced Fanta Orange into the Soviet Union, ending Pepsi's exclusive hold there. Through diplomatic efforts with Egyptian President Anwar Sadat, Austin reinstated company operations in Egypt after a twelve-year hiatus and reopened access to Portugal following a five-decade prohibition. He also spearheaded launches into Yemen and Sudan.
One major exception was India; exports stopped in 1977 when Coca-Cola declined to reveal its secret formula to Indian authorities.
China
In December 1978, Austin declared Coca-Cola’s reentry into China after a ban lasting three decades, concluding negotiations that began in 1975. He underscored the importance of patience and diplomatic strategy, viewing Coca-Cola as emblematic of U.S. foreign trade interests. This announcement closely followed President Carter’s normalization of diplomatic relations between the U.S. and China, although Coca-Cola denied any direct connection between these events.
Coca-Cola Headquarters Building
Paul Austin directed the development of Coca-Cola’s 26-story headquarters located in Atlanta, Georgia, which officially opened its doors in 1979. The interior aesthetics were influenced by his wife, Jeane, who contributed artwork gathered during his international business trips and provided design concepts for the executive areas. A tapestry she commissioned still adorns the building’s lobby.
Wine
During the late 1970s, Coca-Cola briefly ventured into the wine industry. In 1977, Austin played a pivotal role in creating Wine Spectrum, a subsidiary that included Sterling Vineyards, Monterey Vineyard, and Taylor Wine Company. This venture was sold in 1983 to Joseph E. Seagram & Sons for more than $200 million in cash.
Civil rights
Paul Austin was an ardent advocate for Martin Luther King Jr. Following King’s receipt of the 1964 Nobel Peace Prize, Austin was instrumental in mobilizing Atlanta’s business community to support an interracial celebration in a city still marked by segregation. According to activist and former mayor Andrew Young, Austin challenged local business leaders by highlighting Coca-Cola’s international reputation and urging them to overcome their reluctance to honor King, which quickly resulted in unanimous backing for the event.
Coretta Scott King considered Austin a close confidant. He was honored as the first recipient of the Martin Luther King Jr. Center for Nonviolent Social Change’s corporate social responsibility award and, together with Mrs. King, received the Man of Conscience award from the Appeal of Conscience Foundation in 1977.
Election of Jimmy Carter
When Governor Jimmy Carter was relatively unknown beyond Georgia, Paul Austin supported his 1976 presidential bid by providing financial backing, offering Coca-Cola’s corporate aircraft, and facilitating introductions to prominent New York businessmen such as David Rockefeller.
Following Carter’s victory, speculation circulated that Austin might be appointed to a Cabinet position. Although he did not enter the Cabinet, he served as an external advisor to the administration.
Cuba and Castro
In 1977 and 1978, Paul Austin engaged in confidential discussions with Fidel Castro in Cuba, focusing primarily on Coca-Cola’s $27.5 million claim related to properties confiscated in 1961.
Due to Austin’s close association with President Carter, these meetings also served as a channel for dialogue concerning U.S.-Cuban relations. Carter documented this interaction in his White House diary:
The relationship among Austin, Carter, and Castro—and its influence on sugar pricing—was notably addressed in a July 1977 article by William Safire in The New York Times, referring to it as "The Carter-Coke-Castro sugar diplomacy."
Environmentalism
Paul Austin was a strong proponent of environmental stewardship at Coca-Cola, initiating programs such as water purification efforts and the installation of glass bottle recycling machines.
His April 1970 address to the Georgia Bankers Association titled "Environmental Renewal or Oblivion – Quo Vadis?" was recorded in the Senate Congressional Record by Senator Edmund Muskie. As Coca-Cola’s leader, Austin recognized the environmental footprint of corporations and pledged to counterbalance it through company-driven initiatives. He stressed the critical need for environmental accountability:
Personal and family life
Paul Austin held positions on the executive boards of several major corporations, including SunTrust, General Electric, Dow Jones & Company, Morgan Guaranty Trust, Continental Oil, and Federated Department Stores. Between 1972 and 1981, he served as chairman of the board of trustees for the RAND Corporation. Additionally, he was affiliated with influential organizations such as the Trilateral Commission and the Council on Foreign Relations.
In 1977, Austin was honored with the Golden Plate Award by the American Academy of Achievement.
A passionate golfer, Austin led the tournament policy board of the Professional Golfers' Association of America (PGA) and was a member of elite clubs including Augusta National, Scotland's Royal and Ancient Golf Club of St Andrews, as well as Cypress Point Club located in Pebble Beach, California.
The Austin family made their home in Atlanta's Buckhead neighborhood starting in 1958.
Paul and Jeane Austin were parents to two sons, Jock and Sam, and grandparents to eight grandchildren. Their grandson, J. Paul Austin III, held the role of chief investment officer at billionaire S. Daniel Abraham’s private investment firm and serves as chairman of Cornerstone Bank in Atlanta.