Kerala Court nullifies ban on Coke and Pepsi

Cola companies in India took a sigh of some relief when the High Court in the southern Indian state of Kerala, on Friday, capsized a ban on the production and sale of Coca-Cola and Pepsi drinks in the state.

The beverage manufacturers are facing a hard protest from the mass population of the country since last month when New Delhi-based an environmental group, the Center for Science and Environment (CSE) reported on August 3 that the drinks produced by those companies contain unsafe levels of pesticides.

The State High Court division bench comprising Chief Justice VK Bali and Justice M Ramachandran, gave its approval on petitions filed by Hindustan Coca-Cola Beverages Ltd. and Pepsi India Holding Private Ltd. challenging the ban of beverages in the state saying that the government there does not have the authority to impose the ban on the production and sale of drinks.

Seven of India's 28 states imposed partial or complete bans on Coke, Pepsi, Sprite and other drinks from Pepsi Co and Coca-Cola, of them all Kerala ban was the most rigid, which was imposed by the communist rulers of Kerala in August.

More than 10,000 schools have eliminated the beverages from their premises, as a part of the protest.

Although many food products in India contain harmful pesticides, the Center for Science and Environment, headed by Sunita Narainan, said it concentrated on Coca-Cola and PepsiCo because they possess nearly 80% of India's $2 billion soft drink market.

Earlier, in a petition, the two cola giants had told the court that the ban was unconstitutional and their products were safe to consume. On contrary, lawyers for the Kerala government had contended the ban was justified to protect consumers from consuming harmful pesticides.

Overwhelmed with the court’s judgment, Coca-Cola India said in a statement, "We are gratified that High Court of Kerala has set aside the illegal order," saying further that "Coca-Cola India has always been completely confident of the safety of its soft drinks in India."

At around $1.29 billion, annual sales of Coca-Cola and PepsiCo products in India account for only a dwarf part of their universal business but the CSE report and state bans have slashed their local sales and damaged their reputation among many consumers.

Meanwhile, the Coca-Cola company said, “We will immediately take necessary steps to make Coca-Cola available across the state of Kerala.”