“Our Priority is Safeguarding Consumer Interests”…Coca‑Cola Nigeria Cries Out

Coca‑Cola Nigeria being a strong brand in the Nigerian consumable market, has to a large extent built a strong bond not just in the Nigerian market, but in the world at large as they have been able to sustain its brands over several decades and more but the year 2024, does not seem to go down well with the brand as they have been hit with allegations of swapping Sugar for artificial sweeteners in its products.

It is no longer news that decade old brand and the Nigerian Bottling Company (NBC), were recently hit by the Federal Competition and Consumer Protection Commission (FCCPC),  over allegations of engaging in deceptive marketing and unfair trade practices by swapping sugar for artificial sweeteners in some of their popular products, including “Original Taste” and “Less Sugar” variants.

Coca-Cola in a bid to save its brand and maintain good market strength in Nigeria amidst the challenging economy wasted no time in defending its name as they made it clear the brand tends to provide clear, accessible nutrition information on its packaging in line with national regulatory requirements.

According to them, “Coca‑Cola Nigeria provides clear, accessible nutrition information on our packaging in line with national regulatory requirements and is committed to transparency for consumers.

“Our priority is safeguarding consumer interests and we will continue to work constructively with the government on this matter.
We strongly believe that the Coca‑Cola System in Nigeria has complied with all regulations and look forward to the opportunity to bring this topic to closure.”

Key Allegations Against Coca-Cola

According to the FCCPC, Coca-Cola Nigeria and NBC violated Section 116 of the FCCPC Act as well as Section 124 1(a) of the Commission’s Establishment Act. The core of the issue lies in how the companies marketed their products. They misled consumers by suggesting that the “Coca-Cola Original Taste, Less Sugar” variant was identical in formulation to the regular “Coca-Cola Original Taste,” when, in fact, artificial sweeteners were used in place of sugar.

The FCCPC emphasized that this misrepresentation is a significant abuse of market dominance, contravening the FCCPA and Administrative Penalties Regulation 2020 (APR). The Commission has reserved further regulatory actions and penalties, which are expected to be imposed shortly.

Moreover, the FCCPC found that NBC used identical packaging for both its “Zero Sugar” and “50:50” variant of Limca Lime-Lemon flavored drinks. This practice misled consumers, violating Sections 17(g), 116(1) & (2), and 123 of the FCCPA, along with Section 2(a) of the National Agency for Food and Drug Administration and Control Act 2004. The Commission found that NBC applied deceptive trade descriptions to these two variants, further infringing Section 116 (3) of the FCCPA.

Investigation Timeline

The FCCPC clarified that its investigation began in 2019 when Coca-Cola shifted from using regular sugar to non-nutritive sweeteners in its Coke brand. Allegations suggest that similar deceptive practices occurred with the Sprite and Fanta brands, violating FCCPA regulations regarding misleading trade descriptions and abuse of dominant market positions in certain regions.

The outcome of this investigation may set a significant precedent for regulatory oversight in the Nigerian beverage industry, highlighting the importance of transparency and honesty in product marketing. As consumers become more aware of these practices, the pressure mounts on companies to ensure accurate product representation.