Two companies which make and bottle Coca-Cola Co. products - Recofarma Industria do Amazonas and Spal Industria de Refrescos - are under government investigation, according to the Jornal do Brasil newspaper after alleged company espionage by Pepsi bottler Buenos Aires Embotelladora SA (Baesa).

Neither company would comment on the allegations. According to the Jornal do Brasil the investigation was announced by the Justice Ministry's economic department following allegations by Pepsi bottler Buenos Aires Embotelladora SA that Recofarma Industria do Amazonas and Spal Industra de Refrescos broke anti-trust laws.

The newspaper report claims that the investigation was launched based on allegations by former Coca-Cola executive, Antonio Cesar Azambuja.

Azambuja filed a lawsuit in October alleging he was fired in 1997 after taking part in an alleged espionage plot by Coca-Cola to halt an ambitious marketing and distribution effort by Baesa in 1994.

Azambuja also claimed that he helped transcribe four tapes in 1994 that contained secretly recorded conversations of Baesa officials discussing sales strategy.