Coke’s 1999 Issue Essay

What seemed like an single stunned incident of a some bad dissolves of Coca-Cola at a school in Belgium turned into nearly disaster for the soft drink giants European operations. In June 1999, speed of light experienced its worst nightmare a contamination appal resulting in the rec exclusively of 14 million cases of Coke products in quintuplet European countries and huge blow to consumer confidence in the select and recourse of the worlds most recognizable brand.After the initial frighten in Bornem, Belgium, Coke and Coca Cola Enterprises (CCE), a thought they had isolated the riddle. Scientists at the CCE bottling plant in Antwerp found that lapses in whole tone fit had led to contaminated carbon dioxide that were used in the bottling of a upstart batch of Coke. Company officials saw the contamination as minor problem and they issued an apology to the school.At the same time that the problems were being dealt with in Antwerp, things were breakout down at Cokes Dunki rk, France, bottling plant. In Belsele, 10 miles from Bornem, children and teachers were sound off of illnesses related to drinking Coke products. The vending machines at the school were stocked with Coke from the partnerships Dunkirk plants practices were being questioned.What initially seemed like an isolated incident was now a crisis. flat future(a) the second scud, Belgiums wellness Minister banned the sale of all precuts produced in the Antwerp and Dunkirk plants. Things got worse when Coke gave an incomplete set of recall codes to a school in Lochristi, Belgium, resulting in 38 children being rushed to the hospital. Immediately following this incident, French officials banned the sale of soft drinks produced in the Dunkirk plant. It was believed that fungicide on wooden shipping pallets were the cause of the illnesses at the Dunikrik plant.On June 15th, 1999, 11 days after the initial scare in Bornem, Coke finally issued an explanation to the public. Most Europeans wer e not satisfied. Coca Cola officials used unclear language and often contradicted one another when making statements. Frances Health Minister, Bernard Kouchner, stated, That a company so very expert in advert and marketing should be so poor in communication on this matter is astonishing.After three weeks of testing by both Coke officials and French government scientists, it was concluded that the plants were safe and that there was no speedy threat to the health of consumers. Coke has destroyed all of the pallets in Dunikirk and tightened quality control on CO2.How could this happen to the company that is revered worldwide for its quality control and the superiority of its products? Coke has spent decades building its reputation oversea and the European market now represents 73% of total profits. While the scare has had some effect on Cokes profits in Europe, the company is more concerned with damages to its reputation and consumer confidence in its products.Many critics say tha t Cokes slow response time, pressure that no real problem existed and belated apology have seriously damaged the companys reputation in Europe. Some would resist and feel that Coke handled the situation as best it could. I destine that Coke acted in a responsible, diligent way, says John Sitcher, editor of beverage Digest. Their first responsibility was to ascertain the facts in a clear and definitive way. Any as soon as Coke knew what the facts were, they put out a statement to the Belgium people.The character and quality of a company can often be measured by how it responds to adversity. Coca-Cola believes that this crisis has forced the company to canvass both its marketing and management strategies in Europe. Coke executives in capital of Belgium are predicting that the company will double its European sales in the next decade and that this setback will only make the company stronger. Wall Street analysts seem to agree. Only time will tell.