Mixed response to TN cola boycott call

The two multinationals has a market of around Rs 1,600-2000 cr and is silent on the issue

The traders’ association boycott on Pepsi and Coca-Cola products in Tamil Nadu entered the fourth day, but response continues to be mixed. While small retailers are partly supporting the boycott, biggies and hotel chains have decided to adopt a “wait and watch” approach. The two multinationals, whose market here is around Rs 1,600-2000 crore, continues to remain silent on the issue.

The Tamil Nadu Traders Federation and Consortium of Tamil Nadu Traders Association have called for boycott of Pepsi and Coke products and promote regional brands. They wanted around 20 lakh shops affiliated with them to follow. They have cited two major reasons — health issues and alleged exploiting groundwater resources. The move is partly inspired by the jallikattu protests, which have also been viewed as an assertion of the state’s cultural freedom.

However, response on the ground is different. Business Standard reporters have checked and spoke to retail shops across the city and in various parts of Tamil Nadu.

While small retailers in major cities continue to sell, a few said they were not aware about the boycott and few assumed it was the corporation’s ban and also resumed sales.

A retailer said it was easy to do business with the MNCs as they could pay in installments without interest, while for local brands it had to be upfront. Besides, refrigerators were given by MNCs, who also pay a portion of electricity charges. The refrigerators are used to keep other brands and comes useful during the summer.

BigBazaar continues to sell and a storekeeper said they may not place orders from now. Similarly a storekeeper of Heritage Fresh, which is now part of Future Group, said they are clearing the stocks and haven’t taken any decision about new stocks. Because they are also supporting boycott, they are taking wait and watch approach.

A senior official from one of the top retail chains said that the current stock would help them for the next few weeks. By then, he expects the issue to be resolved, which he claimed was politically motivated and momentary. The manager of a Saravana Bhavan hotel, one of the leading chains, said all the branches work as per circulars/instructions from the headquarters.