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Coke: Ethical Issues
The Recall Contd...
The entire episode left more than 200 Belgians and French, mostly school children, ill after drinking the Coke produced at Antwerp and Dunkirk.The company had to assure its British customers that the products made in its UK factories were safe. By June 15, 1999, Coke had recalled about 30 million cans and bottles, the largest ever product recall in its 113-year history. |
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Coke Belgium even announced that it would reimburse the medical costs for people who had become ill after consuming its products. The recall had a significant negative impact on Coke's financial performance with its second-quarter net income coming down by 21% to $942 million. Moreover, the entire operation cost Coke $103m (£66m) while its European bottling venture showed a 5% fall in revenues. Analysts felt that the Belgium recall was one of the worst public relations problems in Coke's history. One analyst3 alleged that the company had information about people who had become ill weeks prior to the above incidents...
