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After CSE, govt set to take the fizz off colas

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Our Bureau New Delhi
Two days after the Delhi-based NGO, Centre for Science and Environment (CSE), revealed that 11 brands of colas contained pesticides, more trouble has been brewing for both Coca Cola and Pepsico.
 
The health ministry wants state governments to collect samples of various cola brands for testing. According to Health Minister Anbumani Ramadoss, based on the Joint Parliamentary Committee (JPC) report, the Centre has asked state governments to collect samples of different cola brands for testing.
 
"We already have standards on quality of soft drinks. The onus of ensuring that soft drinks are pesticide-free is on the manufacturers," Ramadoss said.
 
Meanwhile, the Delhi and Rajasthan governments have banned the sale of colas in schools. The Delhi government has given a directive to all government schools, while an advisory has been given to private schools and a meeting has been planned for taking a final decision.
 
The Supreme Court today issued notices to both Pepsi and Coca Cola on a petition seeking disclosure by cola companies on the ingredients and chemical composition of their products. The apex court has asked the companies to file replies within four weeks.
 
Ramadoss held a meeting with government officials to discuss the CSE's findings and the Supreme Court's notices to Pepsico and Coca Cola.
 
However, the controversy seems to be having little impact on cola sales across the country. A survey across various cities has revealed that cola sales have not dipped in major supermarkets, but smaller vendors have been hit. Smaller vendors in Delhi have been indicating a marginal fall in sales. In Kolkata, for smaller shops, the slump is about 25 per cent.
 
Some of the vendors in Kolkata are of the view that sales of cola brands have become flat as new drinks like Amul's cold coffee, the apple-juice brand Appy, the Frooti range of fruit juice and the newly-launched energy drinks are attracting consumers.
 
According to some shop owners in Bangalore, on an immediate basis, there might be some blip in the sales but it will not affect businesses in the long run.
 
Managers at department stores in Bangalore like the Nilgiris and FoodWorld however, say they are watching consumer behavior closely and will look at either maintaining or decreasing their orders over the next week.
 
"There might be some dip in the demand in the near future," a manager noted, adding that sales did not take a nose-dive three years ago when the same issue had cropped up.
 
In Orissa, which has seen a 30-per cent fall in cola sales over the last two years, consumers are yet to react to the pesticides controversy.
 
Although vendors point out it is too early for consumers to react to the new development, they believe that as media coverage on the presence of pesticides in cola and public discussion on the matter goes on, it will have an impact on sales.
 
In Chennai, which has seen a slump in cola sales in the last one week due to the rains, sales do not appear to have been influenced. Similarly, in Hyderabad, retail vendors as well as representatives of soft drink companies say there has been no impact of the pesticide controversy on cola sales till now.

 
 

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First Published: Aug 05 2006 | 12:00 AM IST

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