Case Studies

Coca Cola

Millions of dollars worth of Coca-Cola products were stolen from the soft-drink giant's Auckland headquarters over nearly two years, allegedly by a group of staff members. Criminal charges have been laid against seven staff and contractors of Coca-Cola Amatil. Police are searching for another man. They say thousands of bottles went missing from the distribution centre nearly every week.

Truck drivers were allegedly paid to take pallets of Coke products from the Mt Wellington base to dairies in South Auckland. Police say the weekly deliveries looked legitimate, but other dairy and shop owners would travel to the stores to buy the blackmarket Coke at cheap prices.

They would pay as little as 10 per cent of the normal wholesale value, then sell the soft drink at their own shops. Police started Operation Pop to investigate the large-scale theft, and charges were laid last week against the seven men, who appeared in the Manukau District Court.

Apisaloma Mauga, Malofou Mauga, Chris Beckett, Gasologa Tu'ulima, Charles Edmonds, Nga Tikaka and Brian Karaitiana each entered no plea to a charge of theft by a person in a special relationship.

The charge was formerly known as theft as a servant, and carries a maximum penalty of seven years in prison. Police would not give details, but the Weekend Herald understands the total value of the soft drink involved could top $2 million.

Detective Senior Sergeant Pete Jones, of the Otara CIB, said the thefts had been going on for nearly two years. Police became involved after Coca-Cola management became suspicious and hired private investigators.

Investigators tracked the staff and truck movements for several months, before handing a file of evidence to the police and laying a formal complaint last month. Detectives were still investigating those who were receiving the stolen Coke products, said Mr Jones.

Further criminal charges could be laid.

Mr Jones said he was not critical of security measures at Coca-Cola headquarters.

"This is a big abuse of trust - there's no other way of putting it - a huge abuse of trust," he said. Coca-Cola Amatil is the Pacific's largest non-alcoholic beverage company and runs its New Zealand operation from Mt Wellington.

It makes, bottles and distributes a wide range of beverages, including water, sports and energy drinks, fruit juice and the famous Coke range, which also includes Sprite, Fanta and L&P.

A spokeswoman for Coca-Cola Amatil said five staff and three contractors had been fired as a result of the thefts. She said the problem was detected towards the end of last year by a new automated warehouse management system.

If you are concerned about employee theft and fraud give us a call on 0800747633 or drop Daniel Toresen a line here.