The Federal Competition and Consumer Protection Commission (FCCPC) has completed a detailed investigation into Coca-Cola Nigeria Limited and the Nigerian Bottling Company Limited (NBC), uncovering significant breaches in transparency and consumer communication.
Launched in June 2019, the inquiry focused on the companies’ transition from traditional sugar to non-nutritive sweeteners in their Coke, Fanta, and Sprite products. The investigation found that these changes were not adequately communicated to consumers.
According to the FCCPC’s statement, Coca-Cola and NBC have repeatedly violated the Federal Competition and Consumer Protection Act (FCCPA), particularly with regards to misleading trade descriptions and unfair marketing practices.
The companies promoted the “Original Taste, Less Sugar” variant as being the same as the classic Coca-Cola, despite differences in formulation. This misrepresentation extended to their other beverages, including Fanta and Sprite, where similar undisclosed changes were made.
By December 2020, the FCCPC had accumulated substantial evidence of these violations. The commission found that Coca-Cola and NBC had failed to provide clear and accurate information about their products, intentionally misleading consumers. Internal documents showed that the companies were aware of the inadequacies in their product differentiation and continued their misleading practices.
In an initial attempt to address these issues, Coca-Cola and NBC agreed to adopt more transparent product descriptions. However, they later abandoned this commitment, opting for a business strategy that did not meet regulatory standards. Despite numerous opportunities to comply, their efforts remained insufficient.
On July 29, the FCCPC issued a Final Order outlining its findings. The order highlighted Coca-Cola and NBC’s use of misleading trade descriptions, particularly concerning the Coca-Cola Original Taste and its “Less Sugar” variant. The companies were also found to have employed unfair marketing tactics, violating several sections of the FCCPA.
The FCCPC noted that Coca-Cola’s marketing of the “Less Sugar” variant was misleading, as it was packaged similarly to the original Coca-Cola, making it difficult for consumers to distinguish between the two. NBC was also found to have misled consumers by using identical packaging for the Zero Sugar and 50:50 variants of the Limca Lime-Lemon drink.
The commission has reserved judgment on issues related to abuse of dominance and the appropriate penalties under the FCCPA and the Administrative Penalties Regulation 2020. These will be determined in due course.
