Swire Coca-Cola wins HK$32 million government deal after bottled water scandal

Swire Coca-Cola has secured a HK$31.9 million (US$4 million) contract to supply Bonaqua water to some Hong Kong government offices, following a HK$52.9 million bottled water procurement scandal last year.

According to a Government Logistics Department notice, Swire Coca-Cola was awarded the 27-month contract on Tuesday to supply more than 1.46 million bottles of drinking water to offices on Hong Kong Island and parts of the outlying islands. The selection followed an open tender launched in December.

In its tender documents, the department added several requirements, including requiring suppliers to prove they held a market share over the past 10 years, had a minimum of 50 sales channels, and possessed a daily order delivery capacity of at least 100 orders.

If the bottled water is imported, the supplier must meet the qualifications of a food importer and submit a safety test report. If the total bid price exceeds HK$15 million, bidders must pass a financial review, pay a contract deposit and allow authorities to conduct an on-site inspection.

In June 2023, Swire Coca-Cola also won a bid to supply bottled water involving 1.35 million bottles of drinking water for HK$40.5 million.

The government came under scrutiny last August over a three-year HK$52.9 million bottled water supply contract awarded to Xin Ding Xin Trade. It was the first time mainland Chinese suppliers won the contract, supposedly saving the city’s 170,000 civil servants an average of about HK$16.2 million a year on bottled water supplies.

The company allegedly submitted fraudulent documents and is suspected of defrauding the department and breaching the Trade Descriptions Ordinance.