COKE, PEPSI COULD BEAR THE BRUNT OF JALLIKATTU PROTESTS
They stand to lose about ~1,400 crore in sales this summer as protesters make them the fall guy of Jallikattu fight
PepsiCo and Coca-Cola may have to sweat it out this summer as the call to boycott soft drinks made by the two multinational giants picks up steam in Tamil Nadu.
While the pro-Jallikattu protest simmers on, people in the state have started to rally behind new battle cries. Some want a speedy solution to the Cauvery water dispute, others want Prime Minister Narendra Modi to do more on the Jallikattu issue, while a section of the protesters wants a ban on beverages sold by PepsiCo and Coca-Cola on health and environmental grounds.
These protesters allege that PepsiCo and Coca-Cola, by extending financial support to PETA, the US-based animal rights body that is against the traditional sport of bull taming, have allied with their enemy in trying to kill native cattle breeds — all in a bid to make inroads for their dairy products into the market. Over the past week, protesters have been gathering across the city to destroy Coke and Pepsi bottles to whip up support for their cause.
The discontent has partly been fuelled by the drought that some parts of the state are reeling under. The protesters’ contention that these companies exploit ground water resources to manufacture aerated drinks even as farmers suffer has struck a chord with many.
Last week, the Tamil Nadu Vanigar Sangankalin Peramaippu, the largest traders outfit in the state with 1.5 million members, stepped in with a call to boycott Coke and Pepsi effective March 1, 2017, citing the harmful effects these products have on children. Finding popular support The traders’ body had made a similar call in 1998, but it failed to convince consumers and the demand for aerated beverages continued to grow unabated. This time, traders are confident that they would be able to garner support as they believe the popular sentiment is with them with the majority of Jallikattu supporters in favour of the ban.
“We have been thinking about banning these products but were not sure what would be the response from customers. But during the Jallikattu protest, youngsters were demanding such a step. So, we have decided not to sell soft drinks made by PepsiCo and CocaCola from March 1,” says K Mohan, secretary of the association.If the decision goes through, the ban could deliver a big blow to PepsiCo and Coca-Cola. Sales worth around ~1,400 crore are at stake for them. While the soft drinks market in Tamil Nadu is estimated at ~2,000 crore annually, the share of local players is only at ~600 crore.
“They (soft drinks) cause more harm than good to the body. Only recently, one of the brands had admitted that their soft drinks are not suitable for children and that they contained certain harmful chemicals,” says A M Vikramaraja, president of the Tamil Nadu Vanigar Sangangalin Peramaippu.
To be sure, Coca-Cola in a print advertisement recently said that its products — Coke, Sprite, Thumps Up and Limca — are “not recommended for children”. As the ad clip went viral, the company clarified that the warning was a mandatory safety disclaimer for products with artificial sweetener and that its soft drinks were safe for everyone to consume.
The damage, though, was done. Several theatre owners, restaurants, hotels and schools quickly heeded to the trade association’s call to stop selling Coca-Cola and PepsiCo products. Along with tender coconut water, local brands such as Kali Mark’s Bovonto, Sri Mapillai Vinayagar, one of the oldest brands in Tamil Nadu, and Bangalore Soft Drinks' Torino are being proffered as alternatives. The state’s catering association too has stopped serving PepsiCo and Coca-Cola products at weddings and parties. Against the interest of farmers While PepsiCo and Coca-Cola did not respond to an email seeking their response on allegations made against them, the Indian Beverage Association, where both the companies have representation, says it is deeply disappointed by the stance taken by the trade association.“At the outset, we would like to clarify that there is absolutely no connection between our member companies and the ongoing events in Tamil Nadu. The proposed call is not just against the interest of farmers, traders and retailers of the state, it also undermines the role the industry