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News
Mixed response to Pepsi-Coke boycott in Tamil Nadu
Date:
02 Mar 2017
Source:
Business Standard
Reporter:
T E NARASIMHAN
News ID:
6440
Pdf:
Nlink:
As the traders body's
boycott
of
PepsiCo
and
Coca-Cola
products across
Tamil Nadu
started on Wednesday, the initiative received a mixed response from retailers. The non-alcoholic beverage is expected to lose around Rs 1,400-1,500 crore of business every year if the
ban
comes into effect as expected.
A M Vikrama Raja, president,
Tamil Nadu
Vanigar Sangham and
Tamil Nadu
Traders Federation said all retailers and shopkeepers in the state have begun to
boycott
these two MNC products, while many of the restaurants and super markets are continuing to sell and they have sought time.
"The traders body called for a meeting with the owners of the restaurants and super markets on Wednesday," Raja said.
The
Tamil Nadu
Vanigar Sangam (
Tamil Nadu
Traders' Association) had officially announced that the sale of
PepsiCo
and
Coca-Cola
products would be banned across the state from March 1. If the decision goes through, this will be a big blow for these companies, which get around Rs 1,400-1,500 crore in sales from
Tamil Nadu
alone. According to industry sources, while the market is estimated to be around Rs 2,000 crore, the share of local brands is only about Rs 600 crore.
A ground check, however, shows the
boycott
received mixed reactions. A few of the small retailers at T Nagar in Chennai, a major shopping business hub, which attracts thousands of people on a daily basis from across Tamil Nadu, said they continue to sell the products.
A few traders also claimed that they were not aware of the
ban
and some of them assumed that it was a
ban
implemented by the corporation of Chennai. Those who misunderstood have said they will resume the sale.
The retailers also feel that while
PepsiCo
and
Coca-Cola
replaces the stock on a regular basis and attend to any complaint immediately, some of the local brands visit the shop only once in a month.
For
PepsiCo
and Coca-Cola, the retailers can pay in installments without interest whereas some of the local brands demand upfront payment on stock, which is difficult to meet with.
Besides, they also fear the MNCs will take away the refrigerator they have provided to the shops, if they stop selling their products. These refrigerators are used to keep other beverage brands as well, and are of immense use during the summer season.
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