The Tamil Nadu Traders' Federation on Wednesday stopped selling aerated drinks manufactured by Coca-Cola Co. and PepsiCo India, terming them a health hazard.
“About 70 per cent of the (15 lakh) traders have decided to boycott the sales of Coke and Pepsi from today (Wednesday) onwards for their toxic nature. Whatever you find on the shelves of the stores are leftover stocks and those not taken back by the (distributing) agencies,” new wire PTI quoted federation president A M Vikrama Raja as saying.
Raja had proposed a ban on sale of these brands at the height of pro-jallikattu protests in the state in January, where it was widely claimed that many international groups may have been behind the ban on the bull-taming sport.
Indian Beverages Association (IBA) termed the boycott anti-consumer, anti-retailer and anti-competition.
This call is against the proven fundamentals of robust economic growth, and against the clarion call of ‘Make in India'. The boycott call also violates the rights of the consumer to exercise choice.Indian Beverage Association Press Statement
The association said Coca-Cola and PepsiCo India provide employment to 2,000 families in Tamil Nadu, while indirectly it employees 15,000 families through their supply chain.
The association claimed that the two beverage makers provides livelihood to two lakh retailers in Tamil Nadu who earn more than “Rs 400 crore in income” by selling their products. The companies have helped communities by adopting villages, restoring water bodies, building check dams and helping in poverty alleviation, the association said.
The industry body hopes that consumers will exercise their right and said it is open to engage with parties that have a different point of view.
In the late 1970s, Coca-Cola had exited India after the Foreign Exchange Regulation Act had put a cap on foreign equity participation. Coca-Cola had returned in the early '90s after the government opened the market to international players.
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