Guangzhou Pepsi Cola Beverage Co., Ltd., a subsidiary of PepsiCo, was involved in a commercial bribery case and was fined 700,000 yuan (around 102,550 U.S. dollars), according to the latest work report from the anti-commercial bribery office of Foshan city in Guangdong province. PepsiCo (China) Limited only stated that the case was still under investigation.
The work report said that Guangzhou Pepsi Cola Beverage Co., Ltd. had offered bribes of 247,700 yuan to 47 chain stores and supermarkets, asking them to display the company's "Tropicana" following Pepsi's requirements. Pepsi Guangzhou got revenue of 3.05 million yuan and enjoyed a profit of 650,000 yuan.
China's official judicial explanation concerning commercial bribery pointed out that commercial bribery referred to "bribery by business entities and their employees in order to buy or sell products and services." "Using bribes to gain advantage over competitors for business purposes" is one of the most distinctive characteristics of commercial bribery.
PepsiCo China didn't give any direct response. "The case is still under investigation and please wait for our official statement," said Christina Li, director of PepsiCo China Public Relations.
In July, nearly 38 tons of frozen concentrated orange juice that PepsiCo allegedly imported from Louis Dreyfus Citrus Trading LDA in Brazil was found with excessive yeast.
By People's Daily Online