No More Sodas. More Tea.

10Aug06

Several state governments in India are banning the sale of colas in educational institutions. Several private schools across India are following suit regardless of governmental regulations.

The New Delhi-based Center for Science and Environment, the instigator of this whole brouhaha, says:

In a comprehensive study covering 12 states (see press release), Centre for Science and Environment (CSE) has found dangerous levels of pesticides in all samples of soft drinks tested. Click for a power point presentation of what we found. For the technical lab report, including Gas Chromatograms, click here. For the latest Down To Earth cover story, explaining the implications of this find, click here.

Now some analysts on CNBC-TV18 in India think the problems Coke and Pepsi are facing may be a blessing in disguise for the tea industry.

“Calculating other numbers, analysts say, 2% rise in consumption of tea, needs additional production of 15-16 million kg. But rehabilitation of crop takes time and therefore demand crunch may push up prices, they say. For tea companies, for every Re 1 increase in prices, 99 paise goes to the bottomline.”

So will the Coke and Pepsi ban be permanent? And will the nation’s youth drink more tea? Unless some more effective marketing campaigns are devised by the Indian tea industry, it’s doubtful. Can an entire industry go up against some of the worlds most powerful brands?

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