Coca-Cola's Belgian Crisis - The Public Relations Fiasco
Excerpts....
The Fiasco
The Explanation
With things not going their way, Coca-Cola's executives came forward with an explanation of what had gone wrong. They claimed that their experts had investigated the problem by testing the suspect batches for chemicals and the tests showed nothing toxic in the beverages....
The Aftermath
Coca-Cola's financial performance suffered a major setback due to the Belgian crisis. The recall had a negative impact on Coca-Cola's overall second-quarter net income in the fiscal year 1999, coming down by 21% to $942 million. Moreover, the entire operation of removing and destroying recalled products cost Coca-Cola Enterprises $103 million (£66 million). The recall led to a 5% decline in the bottler's revenues and a fall in cash operating profit by 6%...
Exhibit
Exhibit I: The Coca-Cola Promise
Exhibit II: Coca-Cola's Quality Statement
Exhibit III: The Coca-Cola Safety Policy
Exhibit IV: Coca-Cola - History of Purity