At this point Gigliotti asked what would Coca-Cola propose should be done next.  Mr. Herbert responded with another slide presentation, spelling out a six-step go/no-go commercial validity test program.  The steps were:

  • Blind taste-testing with independent panel and Coca-Cola panel.

  • Perceived taste-testing with independent panel and Coca-Cola panel.

  • Controlled in-home market preference testing.

  • Public six-store market preference testing, with experimental price vs. performance testing.

  • Public six-months market test in a small city, with experimental price/performance variations (New Bedford, MA).

  • Large city, 12-month market test with varied price/performance testing (Providence, RI).

All of these test programs would be conducted by Coca-Cola, at their own expense, paying the cost of the bottles from Monsanto, and sharing the confidential results of the tests with Monsanto.

 

At this point the Coca-Cola group offered Monsanto an immediate one-million-dollars as Coke's down-payment on the exclusive purchase of the LOPAC project.  Monsanto's group caucused for a few minutes, then countered with a proposal that, if Coca-Cola would conduct the six-step market test program as they had proposed, Monsanto would then build commercial bottle making plants in three of Coca-Cola's ten selected market areas; 85% of the capacity of these plants would be committed to Coca-Cola on a take-or-pay basis, priced initially for an agreed period of time at a premium over the price of glass bottles of the same capacity.  The group agreed to draft Letters of Understanding and proceed immediately on the basis of beginning the first steps using single-portion bottles in the Coke trademarked shape and using Coca-Cola's trademarked green color. 

 

Through Jerry Heckman, the Plastics Industry Food and Drug lawyer, Monsanto received, after substantial testing by the FDA's toxicity and other groups, a 'no migration' letter from the Commissioner of the FDA.  The letter indicated that it was not necessary for Monsanto to apply for or get an FDA indirect food additive regulation allowing the use of its LOPAC containers for commercial bottling of carbonated beverages.