Traders take the fizz out of cola giants, call for ban in state
CHENNAI: Tamil Nadu on Wednesday began a boycott of soft drink majors Pepsi and Coca-Cola to boost local manufacturers, a move that may cost the US companies ₹1,400 crore in sales.
The state’s largest traders’ body — the Tamil Nadu Vanigar Sangangalin Peramaippu (TNVSP) that comprises 6,000 small and medium enterprises and 1.5 million members — said the boycott was applicable to all small shops and retail stores across the states.
Bigger supermarkets and restaurants, about 5,000 in number, sought more time, but representatives from the body said they had scheduled a meeting late in the evening to try and rope in the chains. “Their initial response is encouraging. They only want some time to work out the plan. I am hopeful we will have them commit to a date,” said AM Vikrama Raja, president of the traders’ body. “Shopkeepers are resisting very tempting offers — three to five crates free for every ten crates of foreign colas bought. Almost 70% of our members have not ordered fresh stocks,” he added.
The decision was first mooted at the massive Jallikattu protests that rocked the state last month and forced politicians to legalise the bull-taming sport.
The response, however, is not unanimous. S Kumaran, who runs a grocery store in Adyar in south Chennai, said: “It is for the customer to decide, but I will wait and watch what other shopkeepers are doing before taking a call.”
“The decision was taken to wean away the youth from MNC soft drinks that have killed domestic companies. These foreign companies are also using up scarce water resources,” said K Mohan, secretary of the organisation. Interestingly, PepsiCo’s global head Indra Nooyi hails from Chennai.
The Indian Beverage Association, representing cola majors, said in a statement that it was deeply disappointed by the boycott call. “This call is against the proven fundamentals of robust economic growth, and against the clarion call of ‘Making in India’,” it said, adding, “The boycott call also violates the rights of the consumer to exercise choice.”