This paper investigates the interaction between cultural evolution and biological evolution in the emergence of phonemic coding in speech. It is observed that our nearest relatives, the primates, use holistic utterances, whereas humans use phonemic utterances. It can therefore be argued that our last common ancestor used holistic utterances and that these must have evolved into phonemic utterances. This involves co-evolution between a repertoire of speech sounds and adaptations to using phonemic speech. The culturally transmitted system of speech sounds influences the fitness of the agents and could conceivably block the transition from holistic to phonemic speech. This paper investigates this transition using a computer model in which agents that can either use holistic or phonemic utterances co-evolve with a lexicon of words. The lexicon is adapted by the speakers to conform to their preferences. It is shown that although the dynamics of the transition are changed, the population sti...