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Coke Case Study

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COKE CASE STUDY:
ISSUES IN THE GLOBAL SECTOR

BY

COREY J. GRIFFIN

Coke is a major product brand that has grown from 1886 to becoming the number 1 brand in the world according to Interbrand’s Global Scorecard in 2003. All this success has not come with a little hardship, due to the fact that Coke is a global brand. Just as it was seen in the Nike case study, when a company becomes globalized it is hard to monitor and maintain every sector of the product name.

On August 5, 2003 the CSE (Center for Science and Environment) released a critical press release that name 12 soft drinks brands, Coke brand included, that were sold in and around Delhi to have contain a deadly pesticide residues (CSE Press Release, “Hard Truths about Soft Drinks, 5 Aug 2003). CSE claimed that these dangerous pesticides were known to cause cancer, cause failure of the nervous and reproductive systems, birth defects, and damage to the immune system. Along with the hazardous chemicals found by CSE, there were very limited regulations in place for this industry to follow. These soft drink companies were receiving exemptions for the industrial licensing under the Industries (Development and Regulation) Act of 1951 that would have probably had a chance to take notice to these soft drink contamination events (CSE Press Release, 5 Aug 2003).

In response to these very strong allegations from the Center for Science and Environment, Coke Enterprise of India launched their own internal investigation by sending their own sample of their soft drinks to laboratories for testing as a way of supporting their claim against CSE. Samples that were sent by Coke to labs for testing came back with no signs of detecting pesticides Coke claimed CSE’s allegations to be untrue and questionable because of their method of testing the soft drink products. Coke India’s CEO, Sanjiv Gupta threatened to…...

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