VietNamNet Bridge – The Ministry of Health on July 28 issued a decision to impose VND433 (about $20,000) million fines on Coca-Cola Vietnam for administrative violations on food safety and to withdraw a batch of Samurai drinks from sale.

According to the decision, Coca-Cola Vietnam’s violation is manufacturing supplemented foods at the three places that did not have a certificate for eligible food safety conditions.   

In addition, the company was asked to withdraw from sales a batch of Samurai drink which has Vitamin B9 content less than the registered label. This batch was produced on May 24th 2016, with expiry date on May 24th 2017. However, many products were already sold, with a total value of VND233 million.

Mr. Nguyen Khoa My, Public Affairs and Communications Manager at Coca-Cola Vietnam, said that the company had revoked Samurai products.

He said the less Vitamin B9 content in Samurai products does not affect the customer’s health and safety as this vitamin was available in many kinds of food such as vegetable, orange, beans, etc.

Last month, inspectors started inspecting Coca-Cola Vietnam branches in HCM City, Hanoi and Da Nang.

They found the company manufacturing 13 products Vietnam categorizes as "supplemented food" - a food product with added minerals and vitamins.

Inspectors say the factories are only licensed to produce bottled drinks and do not have the additional safety certificates required for producing supplemented food products.

13 products of Coca-cola Vietnam were temporarily suspended from sales, including milk drink Minute Maid Nutriboost in orange, strawberry and mango flavors, carbonated energy drink Samurai in strawberry flavour in glass and PET (should be made clear) bottles, Samurai in glass and PET bottles, Minute Maid Teppy Orange Drink in glass and PET bottles, sports drink Aquarius in PET bottles and cans, bottled water Dasani, and Minute Maid Splash Smooth.

However, the sales of these products resumed.

Coca-Cola products appeared in Vietnam from 1960 to the mid-1970s, primarily sodas. In 1994 it officially returned to Vietnam.

In August 1995 Coca-Cola Indochina and Vietnam Agricultural and Food Products (Vinafimex) established a joint venture based in the north.

However, Vinafimex sold 30 per cent of its stake to Coca Cola after years of continuous losses totaling about $2 million.

In January 1998 Coca-Cola set up a joint venture with a beverage company in central Da Nang city called Coca-Cola Non Nuoc Co. Ltd.

There is also another joint venture located in the south of the country called Coca-Cola Chuong Duong.

In October 1998 the government allowed joint venture companies to become 100 per cent foreign capital companies.

These joint ventures became fully-owned by Coca-Cola Indochina after it bought shares belonging to its Vietnamese partners.

From March to August 1999, three joint ventures transferred ownership.

By June 2001 three companies were consolidated and went under Coca-Cola Vietnam, which then had a total capacity of nearly 400 million liters per year.

In 2012 the President and CEO of Coca-Cola announced additional investment of $300 million in Vietnam over the next three years, bringing its total investment to $500 million.

In 2014 it invested an additional $210 million in further expanding its business in Vietnam.

Coca-Cola has manufacturing bases in seven cities and provinces, including Hanoi, Ho Chi Minh City, Da Nang, Can Tho, Khanh Hoa and Nghe An.

It has long been ranked among the Top 5 brands with the largest share in Vietnam’s beverage sector.

Le Ha