From Bottles To Bullets

Easy steps
Feb 4, 2025
3 min read

Updated: Mar 19, 2025

By Laion Okuda & Beatriz Magalhães

Level B1 Intermediate/ B2 Upper Intermediate

This article explores how the money spent on major brands can eventually support the arms industry, analyzing the economic pathways that connect consumer goods to military production.

When you buy a Coca-Cola, the last thing on your mind is that a fraction of your money might contribute to weapons production. However, through taxation, corporate profits, and investment networks, consumer spending indirectly fuels industries far beyond soft drinks.

Step 1: Consumer Purchase

A R$ 5.00 Coca-Cola purchase in Brazil breaks down as follows:

Taxes (40%): R$ 2.00 to the government (IBGE, 2023).
Retail/Distribution (20%): R$ 1.00 divided among supermarkets and distributors.
Coca-Cola’s Revenue (40%): R$ 2.00 to the company and suppliers (Coca-Cola Annual Report, 2023).

Step 2: Coca-Cola’s Revenue Distribution

From Coca-Cola’s R$ 2.00 share:

Production/Raw Materials (50%): R$ 1.00 for ingredients, packaging, and logistics.
Marketing (20%): R$ 0.40 for advertising.
Profit (30%): R$ 0.60 reinvested or distributed to shareholders.

Step 3: Profits and Investments

Coca-Cola’s shareholders include major investment funds, including:

Private bank funds
Sovereign wealth funds and pension funds
Diversified investment portfolios, which includes the arms industry

These funds reinvest in multiple sectors, including defense contractors and military technology companies such as, BlackRock, RTX Corporation (Raytheon) and Vanguard, which manage trillions in assets (BlackRock, 2023). These funds diversify investments across sectors, including defense:

BlackRock holds shares in Lockheed Martin and Raytheon (Forbes, 2023).
Sovereign wealth funds (e.g., Norway’s GPFG) also invest in arms manufacturers (SIPRI, 2023).

· RTX Corporation (Rayteon) (2023 revenue: $68.9 billion), is one of the world’s largest defense contractors (RTX Annual Report, 2023).

Step 4: The Connection to the Arms Industry

A) Direct Investments

Funds reinvest profits into defense giants like Lockheed Martin (2023 revenue: $66 billion) and Northrop Grumman (Lockheed Martin Annual Report, 2023).

B) Supply Chains

Multinationals like Dow Chemical supply dual-use chemicals (e.g., for plastics and explosives) (Reuters, 2022).

C) Tax Contributions

U.S. Defense Budget (2023): $886 billion (3.5% of GDP) (SIPRI, 2024).
Brazil’s Military Spending (2023): $20.3 billion (SIPRI, 2024).

Step 5: The Cost of a Bullet

· To illustrate the financial impact, consider the cost of manufacturing a single small-caliber bullet (~R$ 1,00):

Raw Materials (50%): Lead, brass (IBISWorld, 2023).
Labor/Tech (20%): Automation reduces costs (Small Arms Survey, 2022).
Logistics and distribution (10%): R$ 0,10.
Profit (20%): ~R$ 0.20 to manufacturers like Winchester.

From Purchase to Production

A Simplified Breakdown

R$ 5.00 Purchase:
- R$ 2,00 goes to taxes.
- R$ 1,00 goes to distributors.
- R$ 2,00 goes to Coca-Cola
Global Impact:

It is estimated that 0.001% of every Coca-Cola purchase eventually supports weapons manufacturing through taxes, investments, and corporate networks.

Coca-cola’s 43 billion revenue (2023) contributes 0.001% of their billionaire revenue (2023) to arms production.
U.S. taxes fund ~500 million bullets per $100 million (GAO, 2023).
Taxes contribute ~1% - 3% to military budgets (~US$ 100 million - US$ 300 million).

Thus, a seemingly harmless purchase, like a Coca-Cola, can in/directly contribute to the global arms trade.

Beyond Coca-Cola

The Bigger Picture

Apple: ($383B revenue, 2023), significant shareholder ties to defense-related funds such as AI used for defense tech. (Bloomberg, 2023).
Nestlé: Revenue of ~US$ 100 billion, indirect contributions through taxation and investment funds.
Amazon: (574B revenue,2023), providing cloud computing services to defense agencies. (JEDI, 2023). Like the 9 billion Pentagon cloud contract.
ExxonMobil: ($413.6B revenue, 2023), supplying energy resources critical to military operations. (CNN, 2023).

The Role of English Learning in Global Economics

For those studying English, analyzing these financial connections can serve as an insightful exercise in economic literacy. By exploring financial reports, reading international news, and engaging in discussions about corporate responsibility, learners can enhance their English skills while understanding the broader socio-economic impact of consumer behavior. Studying English enables access to:

Financial Reports: SEC filings, SIPRI databases.
News Outlets: Financial Times, The Intercept.
NGO Analyses: Oxfam, Amnesty International.

Final Thoughts

Consumer spending is more than just an exchange of money for goods—it is part of a global financial ecosystem. Understanding the ripple effects of everyday purchases empowers individuals to make informed choices about the brands they support and the industries they indirectly finance.

Whether through taxation, investment, or supply chains, even the most ordinary transactions contribute to complex global structures, including the defense industry.

After all, awareness is the first step toward more responsible consumption.

References

IBGE (2023). Brazilian Tax Structure Report.
Coca-Cola Co. (2023). Annual Financial Report.
SIPRI (2024). Military Expenditure Database.
BlackRock (2023). Investment Portfolio Disclosure.
Lockheed Martin (2023). Annual Report.
GAO (2023). U.S. Defense Budget Analysis.
Bloomberg (2023). Apple’s Defense Contracts.
The Intercept (2023). Amazon’s JEDI Contract.

Updated Context (2023–2024)

Post-Ukraine invasion, global defense spending rose 9% (SIPRI, 2024).
ESG trends push funds to divest from arms manufacturers (Morningstar, 2023)

This article explores how the money spent on major brands can eventually support the arms industry, analyzing the economic pathways that connect consumer goods to military production.

When you buy a Coca-Cola, the last thing on your mind is that a fraction of your money might contribute to weapons production. However, through taxation, corporate profits, and investment networks, consumer spending indirectly fuels industries far beyond soft drinks.

Step 1: Consumer Purchase

A R$ 5.00 Coca-Cola purchase in Brazil breaks down as follows:

Taxes (40%): R$ 2.00 to the government (IBGE, 2023).

Retail/Distribution (20%): R$ 1.00 divided among supermarkets and distributors.

Coca-Cola’s Revenue (40%): R$ 2.00 to the company and suppliers (Coca-Cola Annual Report, 2023).

Step 2: Coca-Cola’s Revenue Distribution

From Coca-Cola’s R$ 2.00 share:

Production/Raw Materials (50%): R$ 1.00 for ingredients, packaging, and logistics.

Marketing (20%): R$ 0.40 for advertising.

Profit (30%): R$ 0.60 reinvested or distributed to shareholders.

Step 3: Profits and Investments

Coca-Cola’s shareholders include major investment funds, including:

Private bank funds

Sovereign wealth funds and pension funds

Diversified investment portfolios, which includes the arms industry

These funds reinvest in multiple sectors, including defense contractors and military technology companies such as, BlackRock, RTX Corporation (Raytheon) and Vanguard, which manage trillions in assets (BlackRock, 2023). These funds diversify investments across sectors, including defense:

BlackRock holds shares in Lockheed Martin and Raytheon (Forbes, 2023).

Sovereign wealth funds (e.g., Norway’s GPFG) also invest in arms manufacturers (SIPRI, 2023).

· RTX Corporation (Rayteon) (2023 revenue: $68.9 billion), is one of the world’s largest defense contractors (RTX Annual Report, 2023).

Step 4: The Connection to the Arms Industry

A) Direct Investments

Funds reinvest profits into defense giants like Lockheed Martin (2023 revenue: $66 billion) and Northrop Grumman (Lockheed Martin Annual Report, 2023).

B) Supply Chains

Multinationals like Dow Chemical supply dual-use chemicals (e.g., for plastics and explosives) (Reuters, 2022).

C) Tax Contributions

U.S. Defense Budget (2023): $886 billion (3.5% of GDP) (SIPRI, 2024).

Brazil’s Military Spending (2023): $20.3 billion (SIPRI, 2024).

Step 5: The Cost of a Bullet

· To illustrate the financial impact, consider the cost of manufacturing a single small-caliber bullet (~R$ 1,00):

Raw Materials (50%): Lead, brass (IBISWorld, 2023).

Labor/Tech (20%): Automation reduces costs (Small Arms Survey, 2022).

Logistics and distribution (10%): R$ 0,10.

Profit (20%): ~R$ 0.20 to manufacturers like Winchester.

From Purchase to Production

A Simplified Breakdown

R$ 5.00 Purchase:

R$ 2,00 goes to taxes.

R$ 1,00 goes to distributors.

R$ 2,00 goes to Coca-Cola

Global Impact:

It is estimated that 0.001% of every Coca-Cola purchase eventually supports weapons manufacturing through taxes, investments, and corporate networks.

Coca-cola’s 43 billion revenue (2023) contributes 0.001% of their billionaire revenue (2023) to arms production.

U.S. taxes fund ~500 million bullets per $100 million (GAO, 2023).

Taxes contribute ~1% - 3% to military budgets (~US$ 100 million - US$ 300 million).

Thus, a seemingly harmless purchase, like a Coca-Cola, can in/directly contribute to the global arms trade.

Beyond Coca-Cola

The Bigger Picture

Apple: ($383B revenue, 2023), significant shareholder ties to defense-related funds such as AI used for defense tech. (Bloomberg, 2023).

Nestlé: Revenue of ~US$ 100 billion, indirect contributions through taxation and investment funds.

Amazon: (574B revenue,2023), providing cloud computing services to defense agencies. (JEDI, 2023). Like the 9 billion Pentagon cloud contract.

ExxonMobil: ($413.6B revenue, 2023), supplying energy resources critical to military operations. (CNN, 2023).

The Role of English Learning in Global Economics

Financial Reports: SEC filings, SIPRI databases.

News Outlets: Financial Times, The Intercept.

NGO Analyses: Oxfam, Amnesty International.

Final Thoughts

Consumer spending is more than just an exchange of money for goods—it is part of a global financial ecosystem. Understanding the ripple effects of everyday purchases empowers individuals to make informed choices about the brands they support and the industries they indirectly finance.

Whether through taxation, investment, or supply chains, even the most ordinary transactions contribute to complex global structures, including the defense industry.

After all, awareness is the first step toward more responsible consumption.

References

IBGE (2023). Brazilian Tax Structure Report.

Coca-Cola Co. (2023). Annual Financial Report.

SIPRI (2024). Military Expenditure Database.

BlackRock (2023). Investment Portfolio Disclosure.

Lockheed Martin (2023). Annual Report.

GAO (2023). U.S. Defense Budget Analysis.

Bloomberg (2023). Apple’s Defense Contracts.

The Intercept (2023). Amazon’s JEDI Contract.

Updated Context (2023–2024)

Post-Ukraine invasion, global defense spending rose 9% (SIPRI, 2024).

ESG trends push funds to divest from arms manufacturers (Morningstar, 2023)

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