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Tag: Coca-Cola

  • Coca-Cola Nigeria okays $600m for expansion

    Coca-Cola Nigeria okays $600m for expansion

    Coca-Cola Nigeria  will invest $600 million by 2020 to boost sales, in line with a global strategy to extend the product range beyond its soft drinks.

    The unit of the Atlanta-based beverage maker plans to expand its offering of drinks to include flavored and condensed milk, iced tea and bottled water to meet demand in Africa’s most populous country.

    Its President, West Africa operation, Peter Njonjo spoke in an interview in Lagos, said:  “Our objective is to provide whatever beverages you need across your life stages.”

    The money is part of a pledge by Coca-Cola to invest $17 billion in Africa by 2020.

    Its Global Chief Executive Officer James Quincey has said the company needs to grow beyond its biggest brand and has called for the soda giant to become a “total beverage company,” being less reliant on carbonated soft drinks.

    Last year, Coca-Cola bought a 40 per cent stake in Nigerian juice and dairy company Chi Ltd. for $240 million and said at the time it intended to take total control within three years.

    Coca-Cola has felt the pinch of an economic slump in Nigeria caused by a decline in output and prices of oil, the nation’s main foreign-exchange earner, and dollar shortages. The economy expanded 0.6 per cent in the three months through June, ending five straight quarters of contractions that saw gross domestic product shrink 1.6 per cent in 2016, the first time since 1991.

    High inflation increased production costs, while the price of imported goods rose due to the dollar scarcity, just as consumers had less money to spend, Njonjo, 41, said.

    The company, which has 3,600 direct employees, 11 bottling plants and 30 distribution depots across Nigeria, isn’t listed in the West African nation and Njonjo declined to share details on production capacity or earnings.

    After peaking at 18.7 per cent in January, the inflation rate fell to 16 per cent in August, while food prices have continued to surge. This is “a big issue,” for Coca-Cola, present in Nigeria since 1951, Njonjo said. “As disposable incomes start getting under pressure, expenditure in products like ours start becoming inaccessible to most consumers,” he said.

    In response to the challenges in Nigeria, Coca-Cola increased prices, introduced new product-sizes and sought more inputs locally. To reduce its foreign-exchange exposure, the company plans to raise to 75 per cent the share of raw materials produced in Nigeria by 2020, from 70 percent currently, Njonjo said.

  • Nigeria drops in FIFA Ranking

    Nigeria drops in FIFA Ranking

    The Super Eagles of Nigeria dropped six places in the latest FIFA Coca Cola world rankings despite impressive results against Cameroon in the World Cup qualifying matches.

    The rankings released on Thursday by Football World Governing body showed that the Eagles dropped from the 38th to the 44th position in the world and fifth in Africa with 695 points.

    It said that Egypt retained the first position on the continent and 30th in the world with 815 points, followed by Tunisia with 810 points and 31st in the world.

    Senegal is third on the continent and 33 in the world with 774 points while DR Congo is 4th in Africa and 42 in the world with 709 points.

    African Champions, Cameroon are 6th in Africa and 45th in the world with 689 points.

    In the top 10 ranked countries, Germany became the number while Brazil is second.

    Portugal is third, Argentina fourth, Belgium fifth and Poland sixth.

    Osita Okeke, Chairman, Nigeria Football Supporters Club, South Africa chapter, said that there was no cause to worry about the latest rankings as it affects the Eagles.

    “ Our concern now is to get the World Cup ticket from group B. That should be our immediate priority.

    “ It is not that the FIFA ranking is not good, but, the Eagles should be focused on beating Zambia in their next match.

    “The ticket is our immediate goal and the Supporters club in South Africa are solidly behind the Eagles,” Okeke said.

  • CPC Dissociates self from N17m judgment against Coca-Cola

    Our attention has been drawn to a publication suggesting that the CPC secured judgment in the sum of 17 million against Coca Cola from the Supreme Court of Nigeria.

    Although the story factually reports that the current Director General of the CPC prior to his appointment as Director General was a partner at SimmonsCooper Partners, and in that role, represented the Respondent in that Appeal (Mrs. Titilayo Akisanya) in this case which emanated from the National Industrial Court as far back as 2012.

     The subject of the litigation appears to be a private employment dispute between Coca Cola and Akisanya. The conflict was not about, or on account of a consumer issue or failure. There was no underlying complaint or apparent statutory jurisdiction of the CPC. Essentially, the only child connection of the CPC to this case is that the court decision was delivered by the Supreme Court at a time after counsel of record, Babatunde Irukera, was appointed by the President of the Federal Republic of Nigeria as Director General of the CPC, even though he previously argued the case before this appointment.

  • Coca-Cola to layoff 1,200 workers as sales slump

    Coca-Cola to layoff 1,200 workers as sales slump

    Sales at Coca-Cola company has continued to fizzle and the company has announced to cut 1,200 jobs to try and get back on track.

    The company made this known in its earnings report Tuesday that the layoffs, which will begin in the second half of this year, are part of a broader cost-cutting plan aimed at saving $800 million.

    The layoffs are a relatively small fraction of the company’s overall headcount.

    Recall that in 2015, Coke (KO) announced it will eliminate 1,600 to 1,800 jobs around the globe as part of a major reorganisation over the coming months aimed at saving billions of dollars during the next five years.

    As at 2015, Coke employs about 130,600 people around the world, it not employs about 100,000 people worldwide.

    According to CNNMoney Incoming CEO James Quincey said the moves are being made to make Coke more agile and lean. The company is also in the process of refranchising some of its bottling operations in North America to save money.

    Quincey, currently Coke’s chief operating officer, will take over as CEO on May 1. He is succeeding long-time CEO Muhtar Kent, who will remain at Coke as its chairman.

    Coke has struggled over the past few years as consumer tastes have shifted away from sugary drinks. Even Coke’s diet brands are in decline due to health risks associated with artificial sweeteners.

  • Coca-Cola brands’ burden of market leadership

    Coca-Cola brands’ burden of market leadership

    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.

  • Coca-cola, Fanta, Sprite, sodium benzoate and vitamin C

    There are some wise saying which keep ringing in my ears every day. One of them is… ‘everything false will inevitably collapse someday’. Another is … ‘A wise man does not plunge for a swim in a vexious sea spewing tsunamis’, yet another says … ‘everything must become new’. I saw glimpses of them all in the thunderbolt judgment of a Lagos High Court three weeks ago. The first impression which hit me from a summary of the judge’s decision was that Coca-Cola, Fanta and Sprite were preserved with chemical substances which were dangerous to health, and NAFDAC, the National Agency for Food and Drug Administration and Control, was negligent on not warning the public about this. I didn’t believe the news flash at first. It wasn’t that I didn’t know that the so-called “soft drink”, like all processed foods and drinks, were dangerous to health. The question was: Who would tell this king that his mother was a witch?

    In Alternative medicine chats, it was always reasoned that whoever lifted a finger against these products in public would be “eliminated” by international capital.

    Even in the United States the Food and Drugs Administration (FDA), equivalent of Nigeria’s NAFDAC, is in the pockets of Big Pharma and the giant food and agriculture concerns. And until recently, they funded medical practice in all sorts of ways to get medical opinion on their side. Dr. Robert Atkins, who would not agree to be pocketed, was ostracised. No radio or television station would grant him exposure. Newspapers and magazines distanced themselves from him in order not to damage their friendship with the food and drugs industry which brings them millions of dollars every year in advertisement income.

    In the end, Dr. Atkins became a publisher and published his own books because no publisher would agree to publish them for him.

    Back to Nigeria, someone asked me last week what I thought would now happen to Coca-Cola, Fanta and Sprite in the market. Immediately, I remembered these three wise sayings…

    What is false

    I learned from a spiritual work in the 1970s that- “whatever is false will inevitably collapse someday”.  Falsehood means anything that is not in accord with the Laws of Nature. This may be a form of government, an economic system, imbalance in relationships or even the type of food or drink we consume to maintain our health. We humans did not create ourselves. We did not create our world either. Thus, we are creatures and subject to the Will of the Creator in His Creation. In my view, our Creator provided us with a bountiful vineyard from which we are meant to obtain our meals fresh and filled with life-force. Because we urbanised and needed to store food for the future, a food industry arose which now developed not only poisonous chemicals to grow food and store them, but even more poisonous chemicals to preserve them for many days, weeks and even years. Our organs of elimination (detoxification) were not made to remove from our bodies the terrible chemicals we now eat and drink with food today. Over time, these organs (the lungs, kidneys, the liver and the skin) are unable to cope, become ill or damaged and, therefore, allow accumulations of poisons in our bodies which cause cancer and many of the degenerative diseases now ravaging the Nigerian population in large quantum. Someday, the public will become aware of this and, individually every person will remove himself or herself from the rot, as I did about 30 years ago.

    The separation from falsehood may come through a revolution, an opportunity for which the Lagos High Court Judgment provided. But the Nigerian public is a dormant, educated-illiterate population. Up till now, many people have not heard of the Lagos High Court Judgment. Some who have heard are asking if it is true. When they learn it is, they resign themselves to fate, saying … “Afterall, something will kill a man”. Those who do not  wish to die ask about the options the Lagos High Court or the Government has provided if they are to stop taking these drinks, as if the judge and the government brought them to this earth or bear primary responsibility for their life and existence on earth. I expect the government and the court not to press this matter too far, because of the possibility that it may unhinge society. Unemployment will grow today if Coca-Cola, Fanta and Sprite have to go. Think not only of those corporate offices and factories, but, also, of those hundreds of thousands, if not millions, of women who sell these “soft drinks” nationwide. If all of them have to go, their exit will be a tip of the iceberg.

    For the same chemicals we complain about in these “soft drinks” are present in commercially prepared white flour snacks which go by different names, tined foods, fruit juices, jams, pickles, salad dressings (these in particular contain large amounts of sodium benzoate), medicines and cosmetics, vinegars, salted margarine, still beverages, olives, pastry and pie fillings, stoned vegetables… almost everywhere in the food industry. So, an attack on Coco-Cola, Fanta and Sprite is an attack on the food industry. Your guess should, therefore, be as good as mine in respect of how the on-going rippling of the food industry will end if, because of the Nigerian complacency, the time is not ripe for “falsehood” to vacate the stage.

     

    A vexatious sea …

    Dr. Fijabi Adebo may not have realised he could cause trouble for  Nigeria’s food industry when, about eight years ago, his company, FIJABI ADEBO HOLDINGS LTD, approached Nigerian Bottling Company (NBC) for business. In March 2007, The company purchased large quantities of Coca-Cola, Fanta Orange, Sprite, Fanta Lemon, Fanta Pineapple and Soda Lemon water for export to the United Kingdom. The products were to be retailed to the company’s customers in the U.K. But the Fanta and Sprite products failed to satisfy health safety requirements of the Stock Port Metropolitan Borough Council’s Trading Standard Department of Environment and Economy Directorate. The health authority found that Benzoic acid and sunset yellow levels in the products were too high for human consumption and could cause cancer. The products were seized and destroyed.

    The U.K funding’s were corroborated by the Coca-Cola Union. Adebo Holdings Company thought that, being a member of the Nigerians Export Promotion Council, it could lawfully export Nigerian products abroad. In any case, NBC was aware the products were to be exported and should have made them comply with the standards of the U.K. The company said NBC was negligent and “breached the duty of care” owed to its valued customers. As for NAFDAC, it said the agency failed to ensure that NBC offered safe products for sale. As a result, asked the judge to compel NAFDAC to force NBC to include a written warning on the labels of these products. The warning is to read that the products cannot be taken with Vitamin C.

    The Crux

    This is the heart or crux of the matter. Sodium benzoate and vitamin C (Ascorbic acid) are said to form Benzene, a proven carcinogen (cancer-causing agent). Food processors use sodium benzoate in acidic foods to control bacteria, yeast, fungi and mild, different species of the same microbial family. On its own, sodium benzoate is touted to cause no harm in the human body if it is not taken with vitamin c. The trouble, however, is that, today, many soft drink manufacturers try to make their products nutritive by adding Vitamin C to them, irrespective of the fact that these drinks are already preserved with Sodium benzoate. In the United States recently, the FDA tested 84 soft drink products and found that 54 of them contained Benzene. Others had levels of up to 79.2 ppb, whereas national rules disapprove of anything above 5 ppb in drinking water.

    Producers of the drinks get away because present limits are only on drinking water and not on soft drinks. Many critics of this double standard believe the producers of soft drinks have gotten away because they were able to over power the law-making machinery. At conferences, they sponsor researchers to hold down the system and re-assure the public that all is well. In the state of California, the government asked soft drinks manufacturers in 2001 to keep sodium Benzene below 0.15ppb. But the soft drinks industry has done nothing about that. Even the so-called powerful American media was irresponsive for a long while. The ground-breaking research on sodium Benzoate, Ascorbic acid and Benzene took place in 1993 and was published in that year in the JOURNAL OF AGRICULTURE AND FOOD CHEMISTRY by researchers lalita K Gardner and Glen D Lawrence. But it wasn’t until 2005, by which time many people had died of cancer and other degenerative diseases that the American media began to talk about it.

    Nbl defence

    I pity the NBL. It is fighting an industry-wide battle. The pure water and bottle water sub-sector is keeping quit. So are those in white flour snack business. The sodium benzoate is in “pickles, peppers, salad dressings, jams, most condiments cheese, ketch up, or diet or regular soda… mouth wash, toothpaste, cough syrup, cream lotion and hundreds of cosmetics products”. They are all keeping mute. The NBL admits that it sold its products to Fijabi Adebo Holdings Ltd. But it said this customer did not inform it that the products were to be exported. The inference on which the NBL predicated its defense, therefore, was that, if it had this information it may have advised against the export of these products. This was because Coco-Cola Nigeria was a different franchise from Coca-Cola U.K. Both derived their existence from Coca-Cola International and produced the products under different specifications of national or municipal laws. The weather in Nigeria, being hotter than that of the U.K, would naturally require a different grade of antimicrobials. In any case, says NBL, sodium benzoate content of Nigerian products were still within the international range, although they were higher than U.K specifications. It, therefore, did not see itself as uncaring for the health and wellbeing of its customers as the court judgment tended to portray it. NAFDAC itself has served a notice of appeal against the judgment which painted it in like terms and compelled it to compel NBL to insert a warning on its label that it was dangerous to consume these products with Vitamin C.

    Rough weather

    There is no doubt that the weather is rough for the food industry. But it is doubtful if it would lose the battle in the end. Nutritionists know that consuming sodium benzoate and vitamin c together may cause cancer and other degenerative diseases. But so is consuming Sodium Benzoate with Vitamin E. Even if Vitamin C and Vitamin E are not  consume together with sodium benzoate, are there no free forms of Vitamin C and Vitamin E in the blood which can react with sodium benzoate taken independently to form Benzene? We shouldn’t forget that sodium benzoate is in hundreds of processed foods, cosmetics and probably beer.

    This suggests that little drops of sodium benzoate from diverse sources can form mighty oceans of sodium benzoate in the body which can then combine with vitamin c and vitamin E taken at separate times. Who can say that he or she does not take vitamin C and vitamin E food supplements with processed foods which, until now, he or she did not suspect to habour sodium benzoate? If NBL says it has not acted against any law by not including warning on the labels would it not be right to say so? Mr. Fijabi Adebo is not crusading for public health. He is fighting in court to recoup lost investment. It is the National Assembly and the Presidency, which can conduct public hearing and brings up a law. NAFDAC ought to have spearheaded this drive, following the trends abroad. Every day, doctors and lay people alike lament that more and more people are dying from all forms of cancer and other degenerative diseases, including eye problems.

    The sun has not begun to rise in the West and set in the East for us to link this trend to such a phenomenon. We must, therefore, look into the air we breathe, the food we eat and the water and drinks we consume. As we find sodium benzoate in most of them, we should be alarmed at the possible daily ingestion of it from varied sources and set new regulations. That is what they are doing in Europe and the U.S to always move on and leave us behind.

    Mr. Justice Adedayo Oyebanji of the Lagos High Court did a good job, in my view, to put the public on its toes. Although judges are meant to interpret the law, their interpretations sometimes amount to enactments. He has not told NBL to stop business. He has told it to warn the consumers of its products the risk they may be taking by consuming these products with vitamin C. I wonder what the judge would have decided if we knew that sodium benzoate could cause the same havocs when consumed with Vitamin E or when consumed independently. In www.naturalnews.com, we are advised:

    “Sodium benzoate has the ability to deprive the cells of oxygen, break down the immune system and cause cancer. It chokes out the body’s nutrient at the DNA cellular level by depriving mitochondria cells of oxygen, sometimes completely shutting them down. Just as humans need oxygen to breathe, cells need oxygen to function properly, and fight off infection, including cancer.”

    Everything must become new

    When I was striving in the 1970s to become a new man and came upon this admonition in a spiritual teaching, I almost gave up the search for the meaning of existence.

    But everything must become new, the author referred to the fact that our world did not come into being without a purpose for being, that it is a work which is governed by certain laws, that humans are in this part of that world for a purpose and governed by these laws, that they find peace and happiness when they conform with these laws, that conformity is at the levels of thoughts, the spoken or written word, and the physical deed, that divergence from conformity brings pain and ruin because it is outside the Will of the Almighty Creator. Therefore such works of man as marriage, education, human relationships, the government, jurisprudence, and nutrition, for example, will bring pain and ruin if they are conducted outside the natural laws. Everything must become new calls for a new human order in which the laws of Nature provide the frame work for human conduct.

    Everything must become new in nutrition as well. It is baseless argument to say preservatives are inevitable in the food industry of today’s world where urbanisation demands that food be transported across continents and stored for goodness knows how long. Have we asked ourselves how the Egyptians under the management of former slave boy Joseph preserved food in seven years of plenty for seven years of famine and more, during which the farms became productive again? Those were 14 long years or more. Man was close to Nature and natural beings in those days. Architect Lekan Adams, of Lagos, is richly endorsed with information and knowledge of the pyramid, as a storage powerhouse, much, much more efficient than the silos of today because its construction admits into it certain ethereal forces which can preserve anything for hundreds of years, if not more.

    Please keep the three concepts discussed above close to your heart in anything you observe or do … “Whatever is false will notably collapse someday”; “A wise person does not plunge into a rowdy sea for a swim”, and “everything must become new”.

  • Coca-Cola brands and the burden of market leadership

    Coca-Cola brands and the burden of market leadership

    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 Coca-Cola Company – a frontline bottler of of soft drinks. There is a raging controversy over the consumption of its products and criticisms against the bottling 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 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 market where the brands thread like a colossal 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 Consumer Protection Council (CPC) before another was raised last week. 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-based businessman, Dr. Emmanuel Fijabi Adebo and his firm, Fijabi Adebo Holdings Ltd., who dragged NBC and NAFDAC to the court, 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 beverage giant have moved on.

    Regardless of where the pendulum of judgment finally swung, 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 the 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 brand of soft drinks, he maintained is 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 for nine years without the consumers knowing until the bubble burst recently, will Coca-Cola company brands market dominance loose grip, perhaps to competitors like AJE Group, maker of BigCola company which has a near perfect substitute for both Sprite and Fanta? Will 7Up and Pepsi step-up their game, seize the moment to snatch a slice of 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 most renowned beverage companies in the world. It controls the largest chunk of the soft drink 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 on 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 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 termed “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 near any similar brand.

    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 brands 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 settle,” said Aderoju Richard, a client relationship manager with a leading marketing communication firm who has worked on the Fanta, Sprite, 7Up and Pepsi.

  • Link between benzoic acid, vitamin C and Coca-Cola drinks

    Link between benzoic acid, vitamin C and Coca-Cola drinks

    One of my favourite Bible quotes can be found in the Book of Hosea chapter 4, verse7: ‘My people perish for lack of knowledge.’ In as much as the Bible confirms the importance of money in Ecclesiastes chapter 10, verse 19 where King Solomon stated that “Money answereth to all things,” yet it did not state that people can die for lack of it but placed so much importance on knowledge by saying that the lack of it can cause one to perish.

    These past few weeks, we have seen what damage the lack of knowledge on an issue can cause with particular reference to the benzoic acid, vitamin c and Coca-Cola drinks saga.

    The social media has been awash with the story. It’s been the number one discussion in most social gatherings. Both the “learned” and “unlearned” have been entertaining themselves with the story. At motor parks, it is the trending story – the carcinogenicity of carbonated beverages in the Nigerian market, especially products from the stables of the Nigerian Bottling Company, NBC.

    The tragic thing here is that most of the information passed around was unfounded rumours, innuendos and speculations without basis. While some claimed that NBC products kill outrightly when taken with Vitamin C, others said it causes cancer.

    However, for this lack of true and early information, I will not blame consumers but the NBC and the National Agency for Food Drug Administration and Control [NAFDAC] which kept fending-off journalists under the guise of civil service bureaucratic rules. “We are not authorised to speak with journalists.” The Agency’s Public Relations Officers were not picking their calls or responding to text messages from journalists.

    The whole confusion started when the public became drawn recently to a judgement of a Lagos State High Court, declaring Coca-Cola drinks, Fanta and Sprite, as unfit for human consumption if taken alongside Vitamin C.

    The judgement was as a result of a litigation commenced nine years ago by a Lagos business man who sued NBC and NAFDAC. The man had tried to export about N12million worth of Fanta and Sprite to the United Kingdom, but UK authorities, after carrying out tests on the product, confiscated the drinks, because, according to them, the products contained levels of benzoic acid and sunset additives, higher than the 150mg/kg allowed in the UK.

    According to Codex Alimentarius Commission (CODEX), the organ established by the Food and Agriculture Organisation (FAO) of the United Nations (UN) and the World Health Organisation (WHO) to set international standards, codes of practice, guidelines relating to foods, food production and safety, the benzoic acid level for preservatives in carbonated drinks and water-based flavoured drinks is 250mg/kg.

    The amount of benzoic preservative in Fanta (1 batch) and Sprite (2 batches) presented in the Lagos High Court are 188.64mg/kg, 201.06mg/kg and 161.5mg/kg respectively, even below the regulatory limits recommended by CODEX, the Standards Organisation of Nigeria (SON) , the European Union (EU) commission and even the United States (US) food and drug agency.

    Under extremely hot weather of about 60 degree Celsius, benzoic acid can react with Vitamin C in drinks, producing benzene which is themed to be a carcinogen. Although according to the Deputy Director Research, Nigerian Institute of Medical Research, NIMR, Yaba, Lagos, Dr. Oliver Ezechi, the levels and frequency at which such benzene formation has occurred in the past has not been considered to pose a public health risk. Moreover, in Nigeria even peak Maiduguri heat is below 45 degrees Celsius.

    The court nevertheless ordered NAFDAC to compel NBC to, within 90 days, include on all bottles of Fanta and Sprite a warning clause that the drinks could be dangerous when consumed with Vitamin C.

    NBC denied that it was negligent. It stated that it was untrue that Fanta and Sprit could be dangerous when taken with Vitamin C. The ruling has been appealed against.

    The federal government also last weekend issued a statement, stating that after a meeting between the Federal Ministry of Health, NAFDAC and SON, in Abuja, the federal government came to the conclusion that Fanta and Sprite were fit for human consumption.

    The burning questions on the lips of Nigerians are: What is Benzoic Acid? What is it used for? Why did the UK authorities say that Fanta and Sprite had excess of it? What is the safe limit? Other question will be, what has it got to do with Vitamin C?

    To really understand the whole story, we shall take it step by step. Simply put, Benzoic acid is a popular preservative used by producers of food and none food products. It also occurs naturally in many plants and fruits such as cranberries, cloves, cinnamon, plum, currants. Significant levels have been found in honey.

    It is usually the first choice of food and some none food manufacturers.  It is very effective against moulds, yeasts and bacteria. It is commonly used in products such as jam, yoghurt, emulsified sauces, toothpaste, cosmetics, shampoo, chewing gum, medicine, carbonated drinks, fruit juice, salad dressing, etcetera.

    However, benzoic acid is particularly well suited for soft drinks, such as carbonated, still and juice beverage because it works best between PH level of 2-3. The composition of the drink therefore has an effect on its efficiency and suitability for use.

    Regulatory requirements of benzoic acid vary from country to country depending on environmental and weather conditions. For carbonated soft drinks and other water-based flavoured drinks, according to CODEX, benzoic acid should not exceed 250mg/kg.

    As stated earlier, for benzoic acid, country temperature, storage and distribution conditions guide setting standards. So while benzoic acid standards in Nigeria is 250mg/kg, UK is 150mg/kg. UK is a temperate climate and the weather does not support microorganism growth. Nigeria is a tropical country and the weather supports microbial proliferation and thus requires higher benzoic acid limit level, hence the higher 250 or 300mg/kg set by SON in Nigeria. However, it should be noted that SON has two legal limits for benzoic acid as food preservative.

    *If a product contains Vitamin C (Ascobic acid), less than 250mg/kg

    *No Vitamin C, (Ascorbic acid), less than 300mg/kg.

    What is the place of Vitamin C in all these? Usually, benzoic acid reacts with Vitamin C in drinks under extremely hot weather conditions like at above 60 degrees Celsius. But in Nigeria, even peak Maiduguri heat is below 45 degrees Celsius. However, when this reaction takes place, benzene which is a carcinogen can be produced.

    According to Ezechi, “the main issue in this controversy that all well-meaning Nigerians should condemn is the export of products meant for the Nigerian market to UK without due diligence. It can be inferred that the company did not obtain the necessary approvals from relevant agencies which are in the position to assist and ensure that all necessary trade/industry requirements were fulfilled.”

    Throwing more light on the controversy, he explained that rejection of a product is not always because of poor quality, but often may be due to non-conformity with regulatory requirements.

    Calling on people to research before making comments on issues that are outside their competence, he added, “We can only engage in meaningful discussion when we base our arguments on verifiable scientific facts and not emotions.”

    Follow us on Face book; Consumer watch-The Nation, and also on Twitter@jillokeke

     

  • Coca-Cola products safe for consumption, says Ministry of Health

    Coca-Cola products safe for consumption, says Ministry of Health

    The Federal Ministry of Health has certified Coca-Cola products manufactured in Nigeria safe for consumption.

    The Ministry stated this on Friday in a statement by its Director, Media and Public Relations Mrs Akinola Boade on behalf of the Minister after a meeting with the Department of Food and Drug Services, National Agency for Food and Drug Administration and Control (NAFDAC) and Standards Organisation of Nigeria (SON) following a recent court order.

    A Lagos High Court in its judgement on a case filed by Fijabi Holdings and another versus Nigeria Bottling Company and NAFDAC ruled that Fanta and Sprite when taken with Vitamin C is poisonous.

    It asked NAFDAC to compel the Nigerian Bottling Company, makers of Coca-Cola products to include a warning label warning consumers not to take Fanta and Sprite with Vitamin C.

    However the Ministry after the meeting with the concerned agencies said a routine inspection conducted at Nigeria Bottling Company by NAFDAC officers in December, 2016 which was satisfactory

    It stated that risk assessment was conducted to ascertain maximum limits of food additives acceptable in foods.

    The assessment takes into consideration the environmental, storage and distribution conditions as well as the shelf life of food products, while NAFDAC and SON regularly monitor the manufacturing practices of Food industries and conduct laboratory analysis to ascertain continuous compliance with required national standards.

    The full findings of the meeting is as follows:

    1. 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.
    2. Are levels of additives introduced as preservatives within specification?
    • Codex Alimentarius Commission (CAC) is the organ established by Food and Agriculture Organization of the United Nations (FAO) and World Health Organization (WHO) to set internationally recognized standards, codes of practice, guidelines relating to foods, food production, and food safety.
    • In the case of Benzoic acid, the standard set by Codex was 600mg/kg until recently reviewed to 250mg/kg and adopted in 2016. (CODEX STAN 192-1995 revised 2015 and 2016).
    • With reference to the Codex standard and other relevant documents, Standards Organisation of Nigeria (SON) as the standard setting body in Nigeria in consultation with technical experts and relevant stakeholders elaborated the standard of benzoic acid in soft drinks to be at 250mg/kg based on the National climatic and storage conditions. This standard has been in existence since 1997 and revised in 2008. (NIS 217:2008)
    • The levels of benzoic acid in Fanta (1 batch) and Sprite (2 batches) presented by the claimant in the court are 188.64mg/kg, 201.06mg/kg and 161.5mg/kg respectively.
    • These levels are in compliance with both the Codex and Nigeria Industrial Standards.
    1. Are Coca-Cola products manufactured in Nigeria safe for consumption?
    • Yes, the Coca-Cola products manufactured in Nigeria are safe for consumption in view of the following reasons:
    1. Risk assessment was conducted to ascertain maximum limits of food additives acceptable in foods.
    2. This takes into consideration the environmental, storage and distribution conditions as well as the shelf life of food products.
    3. NAFDAC and SON regularly monitor the manufacturing practices of Food industries and conduct laboratory analysis to ascertain continuous compliance with required national standards.
    4. There was a routine inspection conducted at Nigeria Bottling Company by NAFDAC officers in December, 2016 which was satisfactory.
    5. Why is there difference between the standard of Fanta and Sprite in Nigeria and the United Kingdom?
    • With reference to the Codex standards, each country or region is permitted to adapt a standard/limit based on country specific scientific evidence such as environmental, storage and distribution conditions.
    • Benzoic acid as a preservative prevents the growth of microorganisms which thrive more at higher climatic temperatures like in Nigeria.
    • Due to the different environmental conditions obtainable in the UK, the standard for benzoic acid was set at a lower limit of 150mg/kg while in Nigeria it was set at 250mg/kg even below that of Codex (as at time of production of that batch; Codex limit was 600mgkg).
    • Food products being imported into a country must comply with the relevant standards of the destination country. NAFDAC has processes in place to ensure products imported into the country are evaluated to ascertain compliance with required Nigeria Industrial Standards.
    • The claimant did not obtain NAFDAC certification before export, otherwise, he would have been advised on the required standard of the destination country.
    1. In view of the above, we would like to advise all Nigerians to take medicines with potable water. This would help to prevent unexpected drug-food interactions.
    2. For the benefit of the health of all Nigerians, all bottling companies are encouraged to insert advisory warnings on all products as necessary.
  • Coca-Cola announces winners of challenge

    Coca-Cola announces winners of challenge

    The Coca-Cola  Company  celebrates Uyo,  Nigeria as a 2016 winner of the Coca-Cola Shaping a Better Future Grant Challenge, a competition that awards acceleration funding to sustain and expand initiatives led by members of the World Economic Forum’s Global Shapers Community.

     The Uyo Hub of the Global Shapers Community will receive a $10,000 grant for their project, “Education for Sustainable Development”. Their funding from Coca-Cola will accelerate the project’s work to build libraries and educational infrastructure for underprivileged students in Nigeria. Through this project, the Global Shapers seeks to correct the negative educational impact on students caused by dilapidated school buildings, overcrowded classrooms, inadequate instruction, insufficient teacher training, and a shortage of textbooks.  To date, the “Education for Sustainable Development” project has increased access to educational materials, resources and facilities for nearly 24,000 students in Nigeria. With their funding from The Coca-Cola Company, the Global Shapers will build three additional libraries.

     MmantiUmoh of the Uyo Global Shapers Hub in Akwa Ibom State said, “Our hunger for better education in this state should never stop. We need to be focused on enabling Akwa Ibom students to pursue their right to education by eliminating the barriers they face and ensuring that activities and programmes are innovative, evidence-based and sustainable.”

    Peter Njonjo, President, Coca-Cola West Africa, said, “It is exciting to see young people demonstrate active interest and resourcefulness in developing innovative solutions for many of the challenges faced by our communities in Africa. This growing trend of social entrepreneurship is supported by The Coca-Cola Company in many ways, and I am particularly proud that two Global Shapers Hub in West Africa – Ho, Ghana and Uyo, Nigeria – were selected as 2016 Winners of the Coca-Cola Shaping a Better Future Grant Challenge.”

    The Coca-Cola Shaping a Better Future Grant Challenge received over 100 project submissions this year from Global Shapers Hubs around the world.