The poisoning of a child in China who drank a Cola-Cola (NYSE: KO) yogurt product may have been intentional.
Since the incident appears to be isolated, Coke will probably not have to recall a number of batches of the product.
“The police’s technical tests and investigations have preliminarily confirmed that this incident is a criminal case in Changchun, which reaffirms that it is not related in any way to our product quality,” Joanna Price, a spokeswoman for Coca-Cola said in an emailed statement.
There have been concerns that Coke’s image in China could be damaged. As is true with many US-based consumer products companie, China, the world’s largest nation by population, is essential to global growth.
CNBC reports that
Food scandals are common in China, where crackdowns have failed to stamp out poisonings and toxin outbreaks that have shaken consumer confidence.
Foreign companies are watched closely as they are generally perceived to hold stricter standards. When western companies are accused of transgressions, it becomes big news in China.
Top Gaining Stocks
Top Losing Stocks