Laerte Codonho and Dolly Fight For Their Lives

Published / by soundproof

There is no secret that the Dolly company began its operation with the idea of providing the best soft drinks in Brazil. Due to the leadership of its founder, Laerte Codonho, the soft drink company began its progression to snatching more and more market share from its competitors. Due to the ire of its competitors, it became apparent that Dolly was here to stay, and there was no stopping them. To further increase market share, Dolly introduced the idea of having a diet soft drink (Istoedinheiro). 


By introducing the diet soft drink, it was not well received by the Brazilian government as it took the position that the artificial sweeteners posed health risks for its purchasers. This led Laerte Codonho to personally have the sweeteners tested in order to satisfy the concerns of the government. After Laerte convinced brazilian government that the sweeteners used were okay for consumption, a product was created and became a popular choice for consumers. The end result, more profits for Dolly and diminished market share for its competitors, and they were not happy.


To the surprise of Laerte Codonho, the company became under scrutiny, and although it took him a little while to figure out why, he quickly alleged that the scrutiny was prompted by Coca-Cola. He felt as though Coca-Cola was using its influence to put the company out of business because of its declining profits. Laerte Codonho began taking his message to the media in order for the public to be aware of what was happening behind the scenes. 


To make matters worse, the Brazilian government indicted him with charges of tax evasion. With these tax evasion charges in place, Laerte Codonho vigorously defended himself by stating that the taxes were paid to his accountant, and that the accountant did not transfer the taxes to the government. With this revelation, it is also understood that the accountant has a relationship with the Coke brand. This disclosure shows the negative side of business, and the degree to which companies will go to gain competitive advantages. 

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