Right now in India, Coke is definitely not “it” and Pepsi is not “the cola.” Some vocal Indians are challenging the soft-drink giants and focusing attention on the country’s faulty food regulation system.
The uproar began when an environmental organization, Centre for Science and Environment (CSE), reported earlier this month that there were high levels of pesticides in sodas manufactured by the companies in India. Some Indian citizens were not pacified by the PR spin from Coke and Pepsi. The soda makers soon found that their usual smoothing-over procedures were not enough for this emerging market and are now scrambling to find ways to reassure customers.
In the US, Coke and Pepsi (depending on your preference) are considered as American as apple pie. While soft drinks are not the healthiest beverages on the market, most of us indulge in the sweet bubbly drinks on a regular basis – probably without thinking a lot about what’s in them.
Had similar findings been discovered in the US, would the sodas have been banned by government leaders, as they have been in some areas of India? It’s hard to imagine such extreme reactions here, in part because we have competent regulators watching over our food and beverage industries.
In India, the CSE report’s accuracy is being challenged by Coke, Pepsi, and the Indian health ministry. The government’s food monitoring system, which is still under development, has no set standards for allowable levels of pesticides in soft drinks. According to the New York Times, India’s groundwater is so polluted that most food products contain some pesticide traces, and sugar is particularly difficult to cleanse of pesticide residue.
So what’s ahead for the soda industry in India? While it’s good that watchdog organizations are looking out for the public, India needs to put in place a dependable regulatory system now to prevent future problems. International companies, including Coke and Pepsi, could also learn a lesson from this situation. A quick and forthright response is essential when brand quality is challenged – or companies risk losing consumers’ trust.
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