Coca-Cola: Courting controversy

Don't want to miss the best from Business Standard?

The journey of Coca-Cola, the world's largest beverage maker, in India has hardly been smooth. Famously thrown out in 1977 by then Industries Minister George Fernandes for violating the country's investment laws, the company's second stint in the country has been fraught with challenges and risks.

The Manu Sharma episode:
This was something Coca-Cola never bargained for. On April 29, 1999, Delhi-based model Jessica Lal was murdered for refusing to serve drinks to Manu Sharma and his group of friends after midnight at an unlicensed bar in Qutub Colonnade. What was the Coke connection? Two of Sharma's friends who accompanied him on that fateful night - Amardeep Singh Gill and Alok Khanna - were general managers at Coca-Cola India. Soon after, the two were arrested for sheltering and helping Sharma escape after the murder.

Groundwater issue:

In 2003, Coca-Cola was accused of exploiting groundwater and disposing hazardous sludge at Plachimada in Kerala, leading to a long battle between the company and the Plachimada village council, later backed by the Kerala government.

Pesticide controversy:
In 2003, the Centre for Science and Environment (CSE) alleged Coke and Pepsi were among a dozen soft drinks that contained dangerously high levels of pesticides and insecticides. In 2006, the controversy resurfaced, with CSE alleging Coke had high levels of pesticides. By this time, the Kerala government had completely banned the sale of soft drinks, including Coke, in the state. Part two of the controversy prompted other states such as Gujarat to consider a partial ban on colas.

Sexual harassment case:
In 2003, former Miss Universe Sushmita Sen levelled a sexual harassment case against Shripad Nadkarni, Coke's marketing head. The case was reportedly settled out of court.