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Coca Cola In India Case Study

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Coca-Cola India

    On August 5th, the Center for Science and Environment (CSE), issued a press release stating that 12 major soft drink brands sold in or around Delhi contain a lethal mixture of pesticide residues. The Pollution Monitoring Laboratory (PML) of CSE conducted tests from April to August and discovered that all the samples of Pepsi Co. and Coca-Cola showed to contain pesticide residue that surpasses global standards by 30-36 times. The pesticide residue was also discovered to contain lindane, DDT, malathion, and chlorpyrifos, which are all known to cause cancer, birth defects, damage to nervous and reproductive systems, and severe disruption of the immune system. After hearing the results of the tests, the Indian government banned all Pepsi and Coca-Cola products in Parliament and independent investigations were conducted by state governments. Following the release of the statement by CSE, the Coca-Cola stock dropped $5 dollars from $55 to $50. The backlash from the CSE results caused Pepsi to file a petition with the high court to dispute the credibility of the tests conducted by CSE, even though CSE claimed they followed standard procedures. A day after CSE’s press release, Pepsi and Coca-Cola banded together in a press conference and questioned the validity of CSE’s results, reminding the public that PML is an unaccredited laboratory.   Pepsi and Coca-Cola stated that PML’s results were not consistent with their own independent accredited laboratory test results, which found no detectable pesticides. Coca-Cola India is run by Sanjiv Gupta, who is the President and CEO, and employs 7,000 Indian Citizens. Gupta released a statement saying that the allegations made by CSE are serious and can damage image and reputation of the company and that legal action will be taken if this continues. Due to the damage of CSE’s accusations, Pepsi and Coca-Cola launched campaigns reassure the Indian public—full page advertisements and statements and test results...

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