Dive Brief:
- Coca-Cola received a warning from the Nigerian Consumer Product Council stating that the country isn't a "dumping ground" for defective products.
- An investigation of the Nigerian Bottling Company, which is the soft drinks giant's lone Nigerian franchisee, and Coca-Cola Nigeria revealed that the NBC produced defective cans of Sprite. Overall, complaints included rusty bottle tops, rusty cans, and foreign particles in drinks.
- The investigation also found that the bottler didn't have a detailed policy in place to deal with defective products, including compensation for those past expiration or injury incurred as a result of consumption. The traceability policy in place was also found to be lacking.
- Coca-Cola and the NBC will now be required to undergo Council safety and regulatory compliance inspection for 12 months. The two must also review the grievance resolution policy, shelf-life policy, and supply chain management policy, sending a copy of the latter two to the CPC within 90 days.
Dive Insight:
This news comes as Coca-Cola and other soda makers batlle lagging soda sales in North America. Complicating matters for Coke is the fact that Nigeria does, as CPC Director General Dupe Atoki notes, account for a significant piece of Coke's market share: Over 3 billion bottles were sold in the nation in 2013. It goes without saying that as soda makers are looking abroad to boost sales, having this kind of mud on its face in a country with sales on that level is not something Coca-Cola wants.
Both Nigerian Bottling Company and Coca-Cola Nigeria, to their credit, seem to be on top of the situation and say they have provided the information requested, while also drawing attention to their commitment to improving the defects and "maintaining the highest international quality management and food safety standards and certifications."