The Indian Cola Wars
Have a Coke and a smile. I’d like to buy the world a Coke. The Pepsi Generation. Nope, none of it works. Because in India, no one is smiling – or sharing a soft drink.
Earlier this week, the Center for Science and Environment (CSE), a New Delhi-based environmental group, announced that soft drinks produced by Coca-Cola and Pepsi (which, combined, share 80% of the Indian soft drink market) were contaminated with pesticides to a level 24 times higher than the limits set by the Bureau of Indian Standards. Six separate Indian states had banned the beverages either partially or outright as of August 13th.
Both manufacturers have rejected the findings, questioning the credibility of the tests and arguing that the problem is in the contaminated groundwater used in the products, not in their manufacturing process. While Coca-Cola remains steadfast in rejecting the claims, news agencies are reporting that Pepsi seems willing to work to a stricter set of standards set up by the CSE. Coke and Pepsi have each mounted a PR campaign to calm consumers, pointing out that the pesticide levels in their products are below levels in other foodstuffs such as eggs, tea, dairy products and grains.
According to Voice of America News:
The Indian Supreme Court has demanded that the companies reveal their recipe, so that allegations of high pesticide levels can be verified with further tests.
But consumer groups say the campaign against the soft drinks ignores the bigger picture. They say many Indian foods and beverages have high levels of pesticides because intensive use of chemicals by farmers has contaminated the groundwater. They are asking the government to focus on the wider issue of pesticide proliferation.
The head of the Mumbai-based Consumer Guidance Society of India, A.R. Shenoy, is calling for stricter implementation of safety standards in all food products, not only soft drinks.
The CSE has asked Coke to reveal the results of internal tests in which the manufacturer claims the pesticide levels are far below the Indian government’s standards and come in line with the more stringent levels set by the European Union.
Soft drink sales in India have dropped nearly 15% since the ban was put in place although this figure is still less than the hit the cola manufacturers took when similar allegations were leveled and dismissed in 2003. Meanwhile local manufacturers are taking advantage of the absence of Coke and Pepsi to market local beverages such as tender coconut water in prime tourist destinations.
