Coca-Cola accuses Danone, Euro RSCG of smearing Dasani

<p>The Coca-Cola Co. said Thursday its Argentinian subsidiary has filed a criminal complaint against executives of a unit of French food and drink maker Danone and public relations firm Euro RSCG, accusing them of orchestrating a smear campaign against Coke's Dasani water brand.</p><p>Atlanta-based Coca-Cola said in a statement that the complaint was filed in Argentina against two executives at Aguas Danone de Argentina and an executive at Euro RSCG Buenos Aires under the country's Unfair Trade Practices statute. Euro RSCG is based in New York.</p><p>Coca-Cola alleges that there is strong evidence that the executives executed a widely circulated two-year Internet smear campaign that included the dissemination of false statements against Dasani.</p><p>The actions, Coca-Cola said, called into question the quality of Dansani, misleading consumers and negatively impacting the product and parent Coca-Cola in Argentina and other Latin American countries.</p><p>Coke spokesman Dana Bolden said the maximum penalty that can be imposed by the court in Argentina is a fine of up to $10,000 per individual, which would be paid to the Argentina treasury, not to the company.</p><p>Dasani was launched in Argentina in October 2005, and then released in other countries in Latin America.</p><p>Immediately following the launch, Coca-Cola said, the brand was maligned as "bottled tap water" and "cancer water" on the Internet.</p><p>The campaign extended beyond Argentina to Mexico, Colombia, Costa Rica, Chile, Peru, Ecuador and a number of other Latin American markets, Coca-Cola said. Major customers in Argentina have refused to sell Dasani because of the rumors, Coca-Cola said.</p><p>Coca-Cola said that as it prepares its legal case, it will consider whether other executives at Aguas Danone de Argentina, Euro RSCG Buenos Aires or other agencies should be included in the complaint.</p><p>Messages left Thursday with a spokeswoman at Euro RSCG and with Group Danone SA's public relations staff in France seeking comment were not immediately returned.</p><p>Dasani is water from a municipal source that is filtered and purified and enhanced with minerals, according to Coca-Cola.</p><p>Outside Coke's annual meeting in 2006, activists were offering a tapwater challenge to passers-by to try to demonstrate that Dasani tastes no better than municipal tap water but is much more expensive.</p>