By Felix Khanoba
The Federal Competition and Consumer Protection Commission (FCCPC) has released a report on investigation into Coca-Cola Nigeria and Nigerian Bottling Company, revealing what it calls misleading branding practices and potential anti-competitive behavior.
According to a detailed report from the FCCPC, many consumers are unaware of key differences between certain Coca-Cola products.
For instance, the report notes that products labeled as “Original Taste” contain full sugar, whereas those with less sugar are sweetened with artificial ingredients.
FCCPC said it found that four products from the companies, specifically Coke Original and Coke Less Sugar as well as Limca Lime-Lemon flavor (2kcal) and Limca Lime-Lemon flavor (53kcal), are affected by this branding issue.
The report further explained that while Coke Original and Coke Less Sugar have different nutritional profiles and are registered separately with NAFDAC, Coca-Cola Nigeria refers to them as variations of the same flavor in its communications.
Despite these differences, the packaging and marketing of these products are nearly identical, with only subtle labels like “ORIGINAL TASTE- LESS SUGAR” and “ZERO SUGAR” printed in small text, making it challenging for consumers to distinguish between them.
The FCCPC’s investigation began in June 2019, when the Commission noticed Coca-Cola Nigeria’s transition from using regular sugar to non-nutritive sweeteners in some products.
On July 29, 2024, the FCCPC issued its Final Order to Coca-Cola and Nigerian Bottling Company, highlighting multiple concerns. These include allegations of misleading trade descriptions under Section 116 of the FCCPA and unfair marketing practices, which contravene Section 124(1)(a).
However, the Commission has deferred its decision on possible abuse of dominance and the penalties that might apply under the FCCPA and Administrative Penalties Regulation 2020 (APR), indicating that further regulatory action is forthcoming.
In response to these findings, Coca-Cola Nigeria and its bottling partner, Nigerian Bottling Company Limited, have denied the allegations. In a statement released on August 1, 2024, the companies asserted that their product labels are clear and fully compliant with national regulations. They emphasized their commitment to transparency and consumer protection.
“Our primary concern is the protection of consumer interests,” the statement read. “We remain committed to constructive engagement with the government to address this issue and are confident in our compliance with all relevant regulations.”
