Coca-Cola's position as one of America's corporate leaders looked a bit shaky yesterday as it faced the scorn of a major customer and the curiosity of US securities officials.
The world's leading soft drinks maker has embarked on an embarrassing round of mea culpas since acknowledging its employees tried to rig a marketing test three years ago in a bid to win business with Burger King.
The Securities and Exchange Commission also has requested documents as part of an informal inquiry into allegations of accounting fraud and marketing deception at company.
The revelations surfaced following an independent investigation into former Coke employee Mr Matthew Whitley's claims of massive wrongdoing in Coke's food services unit, which supplies restaurants and fast-food chains.
Mr Whitley, who was fired in March during a restructuring of Coca-Cola's operations in North America, has filed a $44.4 million wrongful dismissal lawsuit.
Meanwhile, EU regulators are to warn Coca-Cola that it could be fined for abusing its dominant position in the soft drinks market in several EU countries. After a four-year inquiry, the Commission is close to accusing Coke formally of breaking antitrust rules. - (Reuters, Financial Times Service)
