3 Arrested In Coca-Cola Secret Trade Scheme

Three people have been arrested for allegedly attempting to sell Coca-Cola(Charts) company secrets to PepsiCo (Charts), according to the Department of Justice.

Two residents of Georgia and one resident of New York City are purported to have participated in the scheme to sell the Coke secrets to rival Pepsi for $1.5 million.

In May, PepsiCo told Coca-Cola that it had received a letter from a person calling himself “Dirk” offering “very detailed and confidential information” about Coke’s products for a fee, according to the DOJ press release.

The FBI got its undercover agents involved in the case, and over the course of the next month gave the alleged con men manila envelopes with money in exchange for Coke secrets.

Ibrahim Dimson of New York and Edmund Duhaney and Joya Williams of Georgia were arrested in Atlanta on Wednesday without incident, and charged with wire fraud and unlawfully stealing and selling trade secrets. Williams was a Coca-Cola employee.

“Sadly, today’s arrests include an individual within our company,” said Coke CEO Neville Isdell in an email to employees. “While this breach of trust is difficult for all of us to accept, it underscores the responsibility we each have to be vigilant in protecting our trade secrets.”

“Information is the lifeblood of the company,” Isdell continued. “As the health of our enterprise continues to strengthen and the breadth of our innovation pipeline continues to grow, our ideas and our competitive data carry increasing interest to those outside our business.”

A PepsiCo spokesman said that the company was pleased to be of assistance in the investigation.

“We did what any responsible company would do,” said the spokesman. “Competition can be fierce, but it must also be fair and legal.”

(Source)

8 comments

  • I personally think thats an amazing story and that im thankful that there are people out their that still believe in fair justice.

  • A multiBillion dollar company in Pepsi and they asked for a 1.5mil? Lol. Morons

    • So stupid to ask for 1.6 million for a trade secret. A COCA COLA trade secret! Those guys are gonna remain poor for the rest of their lives!

  • The value is not in the recipe, It’s in the brand.

  • Just goes to show. Being a multi billion dollar corporation really does get the attention of the FBI more. Are there not more worthy cases to solve? National security maybe? Not cocaine mixed elixirs.

  • OK.. No matter if they had the recipe or not, that’s the RIGHT move. it’s not that they were not tempted.. but they knew that eventually COKE will discover PEPSI was using their recipe (which btw tastes almost 100% the same) and at least ,it would be a waste of 1.6mil.

  • No,no ,no pepsi and coca-cola are way different just improve your taste ,then talk.

  • Taste tests have shown people prefer the taste of Pepsi. As Robbie said, it’s all about the brand, not the taste.

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