Indian state bans Pepsi and co*ke (2024)

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Why was co*ke and Pepsi banned in India? ›

7 — Two of the world's largest multinational companies, Pepsi and Coca Cola, today ratcheted up a long-running campaign in India to prove their soft drinks are safe, as local governments widened a partial ban on their products following a report by an environmental group claiming the sodas contained high levels of ...

The Plachimada Coca-Cola struggle was a series of protests to close the Coca-Cola factory in the village of Plachimada, Palakkad District, Kerala in the early 2000s. Villagers noted that soon after the factory opened, their wells started to run dry and the available water turned contaminated and toxic.

The two countries where Coca Cola is not sold are Cuba and North Korea. Before the Revolution, Coca-Cola was a fixture among Cubans. The company opened its first bottling plant in the country in 1906.

In 1977, as per the provisions of the Foreign Exchange Regulation Act brought by the Morarji Desai government, Coca-Cola was required to reduce its ownership stake of its Indian operation. Coca-Cola along with other United States companies chose to leave India than to operate under the new laws.

An orange flavoured soda in 1952. Over the next decade, Coca-Cola became the preferred cola beverage and Pepsi was losing on market share and their sales were declining. Hence, in 1962 Pepsi decided to exit the Indian market as it was losing its grip. Parle knew that it wouldn't be able to compete with Coca-Cola.

The Story. PepsiCo doesn't really run its own show in India. It has a loyal partner of nearly 30 years in the country — a company by the name of Varun Beverages Ltd (VBL). The crudest and most simple explanation of VBL's role is that it bottles the fizzy drink for sale.

-The taste, which was the true differentiator, also didn't work in the actual market conditions. Comparisons to regular co*ke were made often, and some also felt it tasted like a kids' product because of the flavour.

Coca-Cola was forced to leave India in 1977 after it rejected a government order to share its famous secret formula with its Indian entities. Pepsi had not yet arrived. In a hot country with a long summer, Coca-Cola's exit created a massive vacuum that was filled by Campa Cola.

Coca-Cola works with bottling partners who manufacture and distribute its beverages in designated markets. It has 11 bottlers in India that operate 54 plants across the country. Milestone Alert!

Fun Fact of the day:

North Korea and Cuba are the only places you can't buy Coca-Cola.

Why was Coca-Cola illegal? ›

Coca-Cola's first trial

In 1909, the Pure Food and Drug Act passed, and the United States government seized 40 barrels and 20 kegs of Coca-Cola syrup because they considered the added caffeine to be a harmful ingredient.

In the cola segment alone, Coca-Cola's brand Thumbs Up has a 16% market share while Coca Cola's namesake brand has 9% hold of the market. Pepsi accounts for 8% of the overall carbonated soft drinks market in India.

The first sales were at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886, where it initially sold for five cents a glass.

Why is coca-cola not available in Cuba? After the Cuban Revolution, led by Fidel Castro, halted the production of Coca-Cola in 1962. The new Cuban government started seizing American firms. Coca-Cola moved out and never returned.

Several Indian states have already banned the sale of co*ke and Pepsi at schools and colleges after scientists found they were contaminated by pesticides. Kerala is the first Indian state to ban producing or selling the drinks; its neighbour Karnataka has banned them from schools, colleges and hospitals.

So far, seven Indian states have banned the sale of co*ke, Pepsi, Sprite and other brands from Coca-Cola and PepsiCo at government-run schools, colleges and hospitals after a New Delhi-based research group said last week that the soft drinks have pesticides levels that far exceed national standards.

In 2019, PepsiCo sued some Indian farmers for cultivating the FC5 potato variety, accusing growers of infringing its patent. The company sought more than 10 million rupees ($120,490) each for the alleged patent infringement. Within months, PepsiCo withdrew the lawsuits against farmers.

The main reason for the Coca-Cola ban

The reason is mainly ideological, which manifests itself in trade embargoes or sanctions. The North Korean dictatorship officially restricts access to this drink, although it is likely that it has crossed the country's borders.