Arguably one of the world’s famous bottler of soft drinks, Coca-Cola is battling with the allegation of ‘poisonous’ Fanta and Sprite. But will the allegation affect the market dominance of the giant’s product? WALE AJETUNMOBI reports.
THESE are not the best of times for bottling giant Coca-Cola Company. There is a raging controversy over the consumption of its products. Criticisms against the company have been on the rise since 2000. There have been growing concerns over health effects, environmental issues, animal testing, economic business practices and employee issues.
The company has multiple lawsuits to contend with. Its brands are some of the world’s most assaulted. In every market, the volatile competition has thrown many blows against one of world’s oldest brands. It has been from one trouble to the other from its Coke, Fanta to Sprite brands.
Not a few consumers confirm these assaults, regulatory authorities in various markets where the brands hold sway are often knocking at the company’s door to explain one consumer violation or the other.
The dust raised by half-filled bottles of Fanta and Sprite accusations in 2014 had hardly been cleared by the Consumer Protection Council (CPC) before another was raised recently. A Lagos State High Court, Igbosere, judge, Justice Adedayo Oyebanji, on March 14, ordered the National Agency for Food, Drug Administration and Control (NAFDAC) to compel the Nigeria Bottling Company (NBC) Plc, manufacturers of Fanta and Sprite soft drinks, to include a written warning that the drinks should not be taken with Vitamin C.
It was the climax of a nine-year old suit against NBC and NAFDAC. A Lagos businessman, Dr. Emmanuel Fijabi Adebo and his firm, Fijabi Adebo Holdings Ltd., who sued NBC and NAFDAC, urged the court to direct NAFDAC to conduct routine laboratory tests of all soft drinks and allied products of the company, to guarantee their safety on the account of negligence and breached of duty of care owed its customers and consumers in the production of Fanta and Sprite with excessive “benzoic acid and sunset” additive
For the conglomerate, the ruling was another blow within two years in Nigeria. In the case of half-filled Sprite bottle two years ago, the CPC got a complaint from a consumer, regarding two half-empty cans of “Sprite” purchased in Abuja, the Federal Capital Territory (FCT). Coca-Cola and the NBC were blamed for their nonchalant attitude towards the directive of the council. The CPC leadership was blamed by stakeholders for high handedness. But the CPC, its members and the beverages giant have moved on.
Regardless of where the pendulum of judgment finally swings, it is obvious that the CPC/Coca-Cola matter was a major issue of consumerism in 2015.
Unlike the case of half-filled bottle, the last case has been more frightening. The court warned that taking Fanta and Sprite with Vitamin C is poisonous and awarded N2 million against NAFDAC for failing “to live up to expectations”. It said the agency failed the citizenry by certifying as satisfactory for human consumption, products which, in the United Kingdom (UK), failed sample test for human consumption and became poisonous when taken with Ascorbic Acid, known as Vitamin C.
Fijabi, also counsel to the plaintiffs, Mr. Abiodun Onidare, in an amended statement of claim, alleged that sometime in March 2007, Fijabi Adebo Holdings, bought large quantities of Coca-Cola, Fanta Orange, Sprite, Fanta Lemon, Fanta Pineapple and Soda Water from NBC for export to the UK for retail purpose.
“In consideration of the fact that this case was filed in 2008 and has been in court for nine years, N2 million is awarded against NAFDAC. Interest shall be paid on the cost awarded at the rate of 10 per cent per annum until liquidation of the said sum,” Justice Oyebanji said.
A public relations consultant for the NBC, Bolaji Abimbola, took to “Facebook” and posted releases to debunk the claims in an apparent move to insulate the brand.
He said: “Both Benzoic Acid and Ascorbic Acid (Vitamin C) are ingredients approved by international food safety regulators and used in many food and beverage products around the world. These ingredients are also used in combination in some products within levels which may differ from one country to another as approved by the respective national food and drug regulators in line with the range prescribed by CODEX, the joint intergovernmental body responsible for harmonizing international food standards.
“All Coca-Cola products, including Fanta and Sprite, produced and sold in Nigeria, contain quantities and combinations of various ingredients in line with the CODEX standards and the national levels approved by NAFDAC. While Fanta contains a combination of Benzoic and Ascorbic Acids, Sprite does not contain Ascorbic Acid (only Benzoic Acid).
“The recent court order relating to this matter has been appealed by NAFDAC and the Nigerian Bottling Company Limited respectively. We reaffirm our unwavering commitment to product quality, safety and consumer satisfaction.”
In the poisonous case saga, the claimants averred that as a registered exporter with the Nigerian Export Promotion Council (NEPC), they could lawfully export the products of NBC to any part of the world.
“In fact, Nigeria Bottling Company was aware that the products purchased were meant for export,” he stated.
Consequently, apart from other reliefs, the claimants demanded N15, 119,619.37 as special damages and N1, 622,000 being the money admittedly received from the claimants.
The NBC, in its amended statement of defence filed by Mr. T. O. Busari, admitted supplying the products but contended that the product manufactured by the company were meant for local distribution and consumption as the company does not manufacture its products for export.
Coca-Cola soft drinks, he maintained, are manufactured and bottled by various Coca-Cola franchise holders in most countries of the world, including the United Kingdom.
The company denied that it was negligent in the manufacturing of its products as alleged, stressing that stringent quality control procedures were adopted in its production process to ensure that its products are safe for consumption of the final user.
The company denied that the damages alleged by the claimants were occasioned by its negligence as the level of the chemical components in its soft drinks is safe for local consumption.
It contended that the claimants’ claims are speculative, frivolous and vexatious and should be dismissed with substantial costs.
Leadership unshaken by market threats
With the enormity of this case, which has dragged on for nine years without the consumers knowing until the court pronouncement, will Coca-Cola company brands the market dominance be lost, perhaps to competitors like AJE Group, maker of BigCola? Will 7Up and Pepsi step up their game, seize the moment to snatch a slice of the Fanta and Sprite market share? Will the consumer fear factor favour any of the competitors? Expert says “No”.
Brand loyalty, bonding
“Over the years, Coca-Cola Company has developed a thick skin for market assaults either from competitors, regulators or consumers. The Coca-Cola Company is one of the world’s renowned beverage companies. It controls the largest chunk of the soft drinks market around the world, distributing roughly 160 different products.
According to Forbes Magazine, Coca-Cola is one of the world’s most innovative companies with a networth of $192.8 billion. It has invested in many social causes, such as campaign against obesity and other environmental causes. The kind of campaigns the brand flag is consumer-bonding, ‘Share A Coke’ campaign is an example of such greats.
“Apart from that, the level of the brand bond with consumers, you can call it reckless but there is nothing you can do about it. The most important thing is for both regulators and the company to collaborate and resolve any issues having to do with safety.
“This is because if the company’s sales drop, the entire global economy will feel it because there will be mass retrenchment, revenue drop for government. So, nobody should rejoice over any marketing assault against the brand,”, a marketing communication expert certified by the Association of Advertising Agencies of Nigeria (AAAN), who pleaded for anonymity, said.
Will the leadership slip?
While no one knows how the case will end? Some experts believe that the market sales will drop in the meantime with little or no brand shift to other competing brands like 7Up, Big Cole variants among others as a result of what expert term “transferred fear factor”, a situation whereby consumers run away from a brand as a result of injurious effect and by extension do not want to go near similar brands.
They believe that the consumers will move on with time. This expected drop in sales is believed will also affect subtitude brands.
“The sales might slightly shift downward but on a short term outlook. The brand will pick up. It has a way of surviving issues like this everywhere it operates. This is no gain to a competing brand because of consumers’ orientation.
The transferred fear factor will cause consumers to run away from similar brands. So, that is why I said it is no really a gain to similar brands like 7Up, Big Cola etch. So, I see Fanta and Sprite retaining their normal share of market till the dust settles,” said Aderoju Richard, a client relationship manager with a leading marketing communication firm who has worked on the Fanta, Sprite, 7Up and Pepsi.
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