Coca-Cola and the perils of multinationalism
Poor Coca-Cola, It's now facing problems on several fronts and on several continents. The company is trying to shore up its image after a number of recent incidents.
- The head of the Coca-Cola fountain drink division recently had to resign after it was discovered that he was rigging a marketing test at Burger King. Apparently, the executive gave a number of children money to buy the product Frozen Coke at regional Burger King stores, thus influencing the trials to see whether Burger King would carry the product nationwide. Coke apologized and paid Burger King $21 million in reparations. The SEC is still investigating. Source
- Meanwhile, federal investigators are looking at accounting fraud in the company, which may have inflated its sales results recently. For this same slush-type product, Frozen Coke. There are also allegations that there were metal residues in some of these drinks. Source
- In Northern Ireland, Coke is being attacked for a 2001 donation to Sinn Fein, the political wing of the terrorist Irish Republican Army. Coke insists the $5,000 gift was simply to an Irish-American banquet in Atlanta, and they were unaware of any political connection. Source
- In India, Coke (as well as Pepsi) is being boycotted after an environmental group found traces of insecticide in both companies' products. Coke is being urged to close one f its plants completely. The government is investigating and the left is intensifying its campaign against the company. Source
- Beset by an increasing anti-obesity campaign in the U.S., Coca-Cola has been running print ads in major newspapers touting the wide variety of beverages they sell, including Odwalla carrot juice, Dasani water, and Minute Maid juice. "As concerns with obesity grow, they want to stress that they sell healthier offerings, too. And they want to remind regulators of that fact. Some of the ads are aimed at Capitol Hill," (Wall Street Journal, August 28, 2002)
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