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Coca-Cola has hit back at campaigners in India whom it claims are causing the company undeserved reputational damage over its use of water supplies in the Kerala region.
The company says ‘politically motivated’ community elders and pressure groups are unfairly blaming Coca-Cola for a water shortage caused by two years of much reduced rainfall.
Local politicians, community groups and some western non-governmental organizations have said water shortages in the area are largely caused by Coca-Cola’s bottling plant at Plachimada, and a lengthy legal battle has ensued.
When the Perumatty village council refused to renew the plant’s water licence, the Kerala High Court supported the decision. However, a division bench of that court has quashed the ruling after a panel of independent experts set up by the court found no evidence that the company’s operations were causing water shortages.
The village council has refused to accept the latest decision and has appealed to the Supreme Court. In the meantime, the plant, which has already been closed for a year as a result of the court battles, will remain shut. Coca-Cola has kept all 400 employees on full pay even though they are not working, and will continue to do so until the dispute is settled.
The allegations about Coca-Cola’s impact have been picked up by a number of international pressure groups and widely aired in the world’s press. However, Coca-Cola says the campaigners are guilty of ‘brand-jacking’ – using a well-known multinational as a soft target to blame for local problems. Since the allegations surfaced, communities near other Coca-Cola plants have begun to demand their closure.
Coca-Cola, which extracted 380,000 litres of water daily from groundwater sources for washing and bottling in its plant at Plachimada, told EP: ‘Our view is that this is a politically motivated attack. There are 27 other business users of water within five kilometres. About half of those use more water than we do. But they are all Indian-owned and not one of them has been targeted. We feel we’ve been singled out unjustly, especially as we put most of the water back after it has been treated.
‘In many ways it would be better for us just to close the plant and get rid of the reputational damage, but there’s an important point of principle here. We are one of the most responsible users of water in India, and while we’re not perfect we are many years ahead of most other companies in the country. Unfortunately, if you want to make a point about something in a developing country such as India it is easier to find a multinational to blame.’
The report to the court said water stocks in the area had decreased because rainfall had been about two-thirds lighter in the past two years, and that Coca-Cola could not be blamed.
Amit Srivastava, director, global resistance of the India Resource Centre, which has campaigned on the issue, said it was ‘absurd’ that the company ‘should be allowed to waste precious natural resources in such a frivolous manner’.
Coca-Cola says it has offered to take Srivastava to its operations, but claims he has refused even to talk to the company.
The company says ‘politically motivated’ community elders and pressure groups are unfairly blaming Coca-Cola for a water shortage caused by two years of much reduced rainfall.
Local politicians, community groups and some western non-governmental organizations have said water shortages in the area are largely caused by Coca-Cola’s bottling plant at Plachimada, and a lengthy legal battle has ensued.
When the Perumatty village council refused to renew the plant’s water licence, the Kerala High Court supported the decision. However, a division bench of that court has quashed the ruling after a panel of independent experts set up by the court found no evidence that the company’s operations were causing water shortages.
The village council has refused to accept the latest decision and has appealed to the Supreme Court. In the meantime, the plant, which has already been closed for a year as a result of the court battles, will remain shut. Coca-Cola has kept all 400 employees on full pay even though they are not working, and will continue to do so until the dispute is settled.
The allegations about Coca-Cola’s impact have been picked up by a number of international pressure groups and widely aired in the world’s press. However, Coca-Cola says the campaigners are guilty of ‘brand-jacking’ – using a well-known multinational as a soft target to blame for local problems. Since the allegations surfaced, communities near other Coca-Cola plants have begun to demand their closure.
Coca-Cola, which extracted 380,000 litres of water daily from groundwater sources for washing and bottling in its plant at Plachimada, told EP: ‘Our view is that this is a politically motivated attack. There are 27 other business users of water within five kilometres. About half of those use more water than we do. But they are all Indian-owned and not one of them has been targeted. We feel we’ve been singled out unjustly, especially as we put most of the water back after it has been treated.
‘In many ways it would be better for us just to close the plant and get rid of the reputational damage, but there’s an important point of principle here. We are one of the most responsible users of water in India, and while we’re not perfect we are many years ahead of most other companies in the country. Unfortunately, if you want to make a point about something in a developing country such as India it is easier to find a multinational to blame.’
The report to the court said water stocks in the area had decreased because rainfall had been about two-thirds lighter in the past two years, and that Coca-Cola could not be blamed.
Amit Srivastava, director, global resistance of the India Resource Centre, which has campaigned on the issue, said it was ‘absurd’ that the company ‘should be allowed to waste precious natural resources in such a frivolous manner’.
Coca-Cola says it has offered to take Srivastava to its operations, but claims he has refused even to talk to the company.
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