Soda Makers to Battle Pesticide Claims

The Indian arms of Coca-Cola and PepsiCo, the soft drinks companies, hinted strongly Thursday that they were planning legal action against the non-government body which on Tuesday alleged their products contained traces of pesticide.

The two companies, which are wholly owned by their parents, have denied the allegations and questioned the laboratory testing methods used by the New Delhi-based Centre for Science and Environment.

Public reaction against the companies appeared to be growing yesterday. On Wednesday, the Indian parliament banned all 12 soft drinks owned by the companies from its premises in New Delhi. Yesterday, four of the 30 state governments said they would test Pepsi and Coca-Cola for toxins.

Both companies placed advertisements in the largest-circulation Indian newspapers, seeking to counter the CSE's allegations. But many of the newspapers also carried editorials accusing the two of double standards. The CSE said it had conducted the same tests on products sold in the US and found no pesticide residues.

"This is trial by media," said Rajeev Bakshi, chairman of Pepsi India. "We are also concerned that there are other players (parliament and government) getting in on the act. Our aim must be to have a fair hearing and to close this matter quickly."

Source: Financial Times