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.