Tamil anger evaporates Cola sales, distributors wary

Sales figure of PepsiCo and Coca-Cola has been hit in Tamil Nadu as traders in various districts in the state have boycotted the selling their drinks. A substantial number of small retailers, departmental stores and also the corporate-backed chain of retailers like Reliance have boycotted the cola drinks in line with Tamil Nadu Vanigar Sangangalin Peramaippu (The Tamil Nadu Federation of Traders) that reportedly has 1.5 million outlets and about 6000 affiliated associations as members. 

In the month of January this year following the Jallikattu movement, traders in Tamil Nadu intensified their campaign against the sale of colas alleging that they ‘contain harmful chemicals’ and also that it ‘strain water resources in the state’. The traders association then fixed March 1 as the deadline for a complete boycott of these beverages in the state.

According to an Economic Times report, the small retailers first responded positively to this call and soon after the big retailer chains also followed the same suit. Some of the big retail chains also offered special rates to push out their stock and whatever is available is either leftover or the ones not taken away by distributors. The report also quoted a source as confirming that Saravana Bhavan, the quick service chain of restaurants, is in talks with its legal team before taking a decision. 

Both the giant global companies have also subsidised their products or provided complete finance for refrigeration equipment, financing redesigning of the interior, and in fact, offered to pay power bills to small retailers as told to Economic Times. Both the brands have also sought state government’s intervention in the matter.

Meanwhile, on March 2, the Madras High Court revoked its earlier ban on PepsiCo and Coca-Cola to draw water from the Thamirabarani river which has come as a big relief for them. The Madurai bench also dismissed the PILs that sought a permanent ban on PepsiCo and Coca-Cola from using water from the river. 

On its previous hearing, the judges questioned why the petition has not included other soft drink manufacturers using the water from the river and has only targeted these two companies. 

• PepsiCo
• Coca-Cola
• Pepsi Ban
• Tamil Nadu bans colas