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Sun 26 Feb 2012 06:02 PM

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Drinks giants could be forced to re-label UAE cans

PepsiCo and Coca-Cola meet with UAE authorities to resolve consumer ‘fraud’ violations

Drinks giants could be forced to re-label UAE cans
Drinks giants could be forced to re-label UAE cans
Coca Cola

PepsiCo and
Coca-Cola could be forced to change the packaging on their drinks cans to avoid
any further violation of regulations after cans intended for export and sales in
hotels were distributed to retail outlets.

Representatives
of both drinks companies on Sunday met with officials from Sharjah and Dubai
after they were ordered to remove all 300ml cans from retail outlets or face
severe fines.

“Possible
collaboration between suppliers and departments of economic development in the
UAE is a solution whereby a sentence like ‘for export only’ can be printed on
300ml cans,” Khalifa Misbah Al Ketbi, of the Sharjah Department of Economic
Development, said in an emailed statement.

“It will give
authorities better control over the markets and ensure that product meant for
exports are not diverted to local retailers and department stores,” he added.

Consumer
watchdogs last week accused PepsiCo and Coca-Cola of reducing the size of their
AED1.5 cans from 355ml to 300ml and removing the price tag without
permission.

Some cans
destined for export may have been leaked to retail outlets, a statement from the
Department of Economic Development said.

Authorities on
Sunday confirmed 355ml cans can only be sold in hotels. “Hotels rely on
international standards and their pricing is also different from other outlets
that are not subject to the ten percent municipality fees as in the case of
hotels,” said Omar Bushahab of Consumer Protection division.

Cola-Cola and
PepsiCo in January raised the price of their products in the UAE for the first
time in more than 20 years. Both companies cited inflation, rising petrol and
salary costs and a steep rise in sugar prices as reasons for the increase.

Earlier this
month, PepsiCo announced it was planning to cut 8,700 jobs in 30 countries in a
bid to save an extra $1.5bn over the next three years and compete with its
larger rival.

PepsiCo, which
owns nineteen global brands including Gatorade, Tropicana, Aquafina and Lay’s,
said revenue in the fourth quarter of 2011 increased 16 percent in the Asia, the
Middle East and Africa (AMEA), with double digit snacks volume growth in the
Middle East.

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Yusuf Ali 7 years ago

why do we have different can sizes between pepsi -355ml and coke - 330ml? why do not both of them have 355ml?
UAE govt must standardise the can sizes as well.

gordon 7 years ago

Pepsi & Coca Cola

Is it a coincidence that they both did this at the same time, if not was it collusion?

Which just happens to be illegal in most countries. Goes under the other name "price fixing"

Harmony 7 years ago

I'm worried about the sticky mess that export cans leaking in retail outlets will make. I hope they mop it up before it dries.

HHH 7 years ago

Pepsi and Coca-Cola are the children of one mother.