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> globalization
News & Views
Fighting Coca-Colonization?

U.S. soda giants get popped by a small Indian environmental group

By Julia M. Famularo

Posted: August 27, 2006


WITH A LITTLE SCIENCE and a mean leftist hook, a small New Delhi-based environmental group has managed to give black eyes to two of the biggest brands in the world, Coca-Cola and Pepsi.

Led by Sunita Narain, the Centre for Science and Environment (CSE) threw the first punch earlier this month with a report claiming that locally bottled sodas “contain a deadly cocktail of pesticide residues.” CSE said that its lab tests revealed pesticide residues far above limits recommended by the government.

Despite Coke and Pepsi’s claim that their products are safe and that locally grown rice contains 34,000 times more pesticide residues than bottled water or soda, several Indian states have banned the soft drink products in schools and government offices. In recent weeks, anti-globalization activists have staged dramatic protests (pouring soda down the throats of donkeys, breaking bottles, burning signs), while demanding stringent monitoring and testing procedures to make sure that pesticides stop finding their way into soft drinks.

Meanwhile, the business press has criticized the soda makers for reacting too slowly to the brewing PR disaster by keeping a dignified silence and letting populist politicians exploit India’s deep-seated distrust of foreign corporations. It didn’t help that CSE, a respected research and advocacy group, had released similar findings in 2003.

In a possible bid at damage control, PepsiCo Inc. recently elevated company veteran Indra K. Nooyi to the post of chief executive officer, making her one of the highest-ranking female CEOs in the Fortune 500. Despite her new stature, Nooyi will have a tough time repairing Pepsi’s image in her native India.

In addition to charges of pollution and sludge-dumping, American soda makers have also been accused of adding to drought conditions by consuming groundwater used by the locals for farming and drinking. In other words, how do you sell a beverage that causes thirst?

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