The Federal Competition and Consumer Protection Commission (FCCPC) has released a damning report detailing alleged deceptive branding and labeling practices by Coca-Cola Nigeria Limited and its partner, the Nigerian Bottling Company (NBC).
The investigation, which began in June 2019, uncovered significant issues with product packaging and pricing strategies that reportedly misled consumers.
The probe focused on four products, including variants of Coke and Limca.
Babatunde Irukera, Executive Vice Chairman of the FCCPC, stated, “Our investigation revealed that Coca-Cola Nigeria introduced a new variant, ‘Coke Original Taste – Less Sugar,’ without adequately informing consumers or differentiating it from the original Coke.”
The report highlighted that the new variant was packaged almost identically to the original, creating confusion among consumers. Similar issues were found with Limca, where two different formulations were sold in indistinguishable packaging.
“These practices violate several sections of the Federal Competition and Consumer Protection Act and NAFDAC regulations, which require clear and accurate product information,” Irukera added.
The FCCPC’s investigation involved site visits to NBC plants and multiple meetings with company representatives. In September 2020, the commission approved a new packaging design for Coke with less sugar. However, Coca-Cola Nigeria allegedly failed to implement these changes.
“We discovered that Coca-Cola Nigeria reintroduced Coke Original in PET bottles using designs previously rejected by the FCCPC,” Irukera explained. “This demonstrates a deliberate disregard for regulatory directives.”
The commission also alleged that both companies provided misleading or false information during the investigation.
“NBC falsely informed the Commission that it had not applied the proposed brand designs to any of its products in the market,” Irukera stated.
While the FCCPC also investigated Coca-Cola Nigeria’s pricing practices, which varied across different regions, the data was insufficient to conclusively demonstrate an abuse of market dominance.
The report concludes that Coca-Cola Nigeria and NBC engaged in practices that violated consumer protection laws.
The FCCPC is expected to announce potential penalties or corrective actions in the coming weeks.
