Coca-Cola Israel sales slump due to contamination fears

Officials in the Ministries of Health and Industry, Trade and Labor have been highly critical of Coca-Cola Israel.

An investigation by "Globes" at Israel's main retail chains showed that sales of Coca-Cola have fallen by 10-20% in recent days after the Central Bottling Company Ltd. (Coca-Cola Israel) pulled bottles from shelves on suspicion of containing contaminated carbon dioxide.

Bottles withdrawn include regular Coca-Cola 1.5 liter bottles with expiration dates of March 17-19 and 21-23, 2010, 1.85 liter Diet Coca-Cola bottles with expiration date March 22, 2010, 350 milliliter Diet Coca Cola bottles with expiration date April 21-22, 2010, Coca-Cola cans with expiration date July 21, 2010, and 250 milliliter Kinley bottles with expiration date 18-19 March 2010.

Coca-Cola Israel insist there is no danger to the public but a Ministry of Health official told "Globes" "I don't know what motivated the company not to announce the problem the moment they knew. They have lost the trust of the public. It is the company's obligation to tell the public as soon as possible. It is not right. Period."

Ministry of Industry, Trade and Labor consumer protection officer Adv. Yitzhak Kimche was also highly critical of Coca-Cola Israel. He said, "When you want to tell consumers about a fault in a product there are ways to do it, and not through an announcement on an inside page of newspapers. Kimche is investigating Coca-Cola Israel's behavior over the entire affair.

On Sunday Ministry of Health Food Service inspectors yesterday visited the Makhteshim Agan Industries Ltd. (TASE: MAIN) factory that manufactures the carbon dioxide used by Coca-Cola Israel. The results of the inspection have not yet been received. The ministry said that Makhteshim was conducting its own inspection into the suspected contaminated carbon dioxide.

Published by Globes [online], Israel business news - www.globes-online.com - on December 1, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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