Coca-Cola Co, world's biggest beverage maker, has been sued by a Washington-based nutrition advocacy group over what it called 'deceptive and unsubstantiated' claims about its drink VitaminWater.
The soft-drink giant, however, described the lawsuit as ridiculous.
Accusing the company of deceiving consumers into believing that VitaminWater provides remarkable health benefits by marketing, advertising and labeling the VitaminWater flavours with names, including 'defense', 'rescue' and 'energy', the Center for Science in the Public Interest said the drink was basically sugar water.
"Coke fears, probably correctly, that they will sell less soda as Americans become increasingly concerned with obesity, diabetes, and other conditions linked to diets too high in sugar. VitaminWater is Coke's attempt to dress up soda in a physician's white coat.
"Underneath, its still sugar water, albeit sugar water that costs about ten bucks a gallon," CSPI litigation director Steve Gardner said.
However, describing the lawsuit as publicity stunt, the beverage giant said: "Filing a lawsuit is an opportunistic PR stunt. This is not about protecting the public interest. This is about grandstanding at a time when CSPI is receiving very little attention."
Coca-Cola bought Glaceau's VitaminWater for $4.1 billion in June 2007.
The same year, Coke acknowledged the Securities and Exchange Commission that 'obesity and other health concerns may reduce demand for some of [its] products,' and that 'increasing public awareness' about health experts' concerns over sugar-sweetened beverage could affect the company's profitability, CSPI claimed.
"The company makes a wide range of dramatic claims, including its drinks variously reduce the risk of chronic disease, reduce the risk of eye disease, promote healthy joints, and support optimal immune function.
In fact, according to CSPI nutritionists, the 33 grams of sugar in each bottle of VitaminWater do more to promote obesity, diabetes, and other health problems than the vitamins in the drinks do to perform the advertised benefits listed on the bottles," the Center accused.
"This is a ridiculous and ludicrous lawsuit. Glacau Vitaminwater is a great tasting, hydrating beverage with essential vitamins and water, with labels showing calorie content," the company stated while reacting to the class action lawsuit filed in US District Court in the Northern District of California.