COCA-COLA FACES ANOTHER UNIVERSITY BAN

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In addition to these accusations, both cola majors Coca-Cola and Pepsi were accused of having a cock tail of harmful pesticide residues in their cola products sold in India in a study conducted by the Center for Science and Environment (CSE) in 2003. Coca-Cola claimed that there was no evidence linking it or its bottlers to the groundwater problems at its factory locations and that its products sold in India were perfectly safe in accordance with global quality standards.
For Coca-Cola, the world’s most widely recognized brand and one of the largest non-alcoholic beverage companies, it clearly wasn’t good news to begin the New Year 2006.

Earlier Coca-Cola had to contend with sluggish growth rates, stagnant cola sales in developed markets, and being perceived by investors to have been slow to diversify into non-cola beverages. In early December 2005, the company’s bitter rival PepsiCo overtook it in terms of market capitalization for the first time in 112 years. This incident also highlights the growing trend of consumer activism witnessed in recent years. After Nike and Wal-Mart, it seems to be Coca-Cola’s turn to face the ire of human rights activist groups for its labor practices.

REFERENCES :

1. “Pepsi, Coke contain pesticides: CSE,”
http://in.rediff.com/money/2003/aug/05pepsicoke.htm, August 05, 2003.

2. Steve Matthews, “US: Coca-Cola Faces Boycotts Over Colombia Murders,” Bloomberg News, http://www.corpwatch.org/article.php?id=11925, March 2, 2005.

3. “University of Michigan bans Coca-Cola sales,” http://msnbc.msn.com/id/10651153/from/RL.5/, December 30, 2005.

4. “School bans Coca-Cola,”
http://www.chicagotribune.com/business/chi0512310066dec31,1,4004259.story?coll=chi-business-hed, December 31, 2005.

5. “Colleges boycott Coke over labor concerns,”
http://www.taipeitimes.com/News/biz/archives/2006/01/01/2003286954, Jan 01, 2006.

6. Reuters, “Univ in US to toss Coke,”
http://www.financialexpress.com/latest_full_story.php?content_id=113144, December 31, 2005.

7. “University of Michigan gives Coca-Cola the boot,”
http://www.billingsgazette.com/index.php?id=1&display=rednews/2005/12/31/build/business/56-mich-coke.inc, December 31, 2005.

8. “US varsity suspends Coke sale”,
http://inhome.rediff.com/money/2005/dec/31coke.htm, December 31, 2005.

9. “Colombia killings cause Coca-Cola ban,” http://www.anncol.org/uk/site/doc.php?id=234, January 04, 2006.

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