Coca-Cola Chlorine Scare: Effects on Economy

"Beijing (China Daily/ANN) - The Coca Cola Co apologized on Friday for the way it has dealt with a scandal that arose after some of itsdrinks were alleged to be contaminated with chlorine.

In response to the accusations, the company temporarily halted production at its bottling plant in Shanxi province on April 28. Shortly before that, the provincial food-safety watchdog had conducted an inspection of that site and confirmed earlier media reports which alleged that drinks produced from February 4 to February 8 there were made with water containing unusually large amounts of chlorine.

Of the 120,000 boxes of drinks, 76,391 were distributed in Shanxi.David G. Brooks, president of the US beverage giant's China and South Korea branches, said customers and distributors who have the drinks in their possession, or even bottles that had contained a contaminated beverage, can call the company to have them replaced or get their money returned. His remarks came at a news conference held on Friday in Taiyuan, capital of Shanxi province." - [link]

Even though this is only a scandal and was not proven true, this could highly affect the current reputation of the Coca-Cola company  in the soda industry, or even to the country itself. It will make the demands of the buyers to decrease as people will be quite scared to buy as they increase their awareness. This may either lead to lessening of the Soda products to decrease in quantity, as their profit will gradually increase. This is bad for Coca-Cola because China is a heavy-populated country, which means there are a lot of buyers. If they lose this country, then they'll have to reduce factory workers, supply, and the quantity of the goods.