The worst is indeed over for Coca-Cola and PepsiCo in India. If you are a regular reader of this blog then perhaps you can remember that last month during this time, I posted about the cola controversy almost everyday. I must admit that I could not imagine that Coke and Pepsi would be able to get out of this problem in such a short time. However, all is not so rosy for the two cola giants in India yet. The pesticide controversy has seriously dented their sales figures in India. I just read a report in the Financial Express titled ‘Soft drinks sales still 30% below normal’. In this report Anandita Singh Mankotia writes:
“Spokespersons of Pepsi and Coca-Cola refused to comment on the sales figures.
Sales had plummeted up to 60% in different parts of the country and 35-40% as a whole, immediately after the controversy. CSE allegation prompted the Kerala government to ban sale and manufacturing of soft drinks in the state while some other states banned them in government offices, canteens or schools and colleges.
Most distributors and retail chains FE spoke to confirmed sales were far from bouncing back and it may take a while before they return to normal. Further, this is the beginning of the slack season when soft drink sales normally go down.”
Coke and Pepsi officials in India have not stated anything about this matter. Well, if they did not suffer any significant drop in sales then they would surely claim it everyday. So, I feel that there is some truth in the fact that the cola giants have suffered a lot because of the pesticide controversy. The best thing to do for the two cola giants is to wait for another 6 months and carry out promotional activities to restore public confidence.
Comment Preview