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The Coca-Cola Company Addresses Allegations Made About our Business in India

The Coca-Cola operation in India has been the subject of a variety of erroneous allegations recently and this is intended to clarify the facts regarding our business there.

Recent Media Reports regarding the Coca-Cola plant in Kerala

We are greatly concerned by the allegations raised in recent media reports concerning environmental practices at our plant in Palakkad, Kerala, Southern India. Here are the facts:

1. Bio-solids

• The 'sludge' or bio-solid is the end result of the waste water and water treatment processes and is made up of organic and inorganic material. The use of bio-solids as a soil amendment is not an uncommon practice around the world and within the Coca-Cola system, including in the US. We require that all of our plants, including in India, monitor generation, composition and management of the bio-solids that are a byproduct of our manufacturing operations.

• For the avoidance of doubt, we have suspended land application and other disposal of the bio-solids until standard testing protocols are agreed and accepted by all constituents, and reliable analytical results are available for review.

• We are also talking to the Indian central government to ensure that the issue of a uniform and consistent national regulatory framework is given the full review that it deserves.

• Furthermore, the Kerala State Pollution Control Board, in a detailed study, concluded that the concentration of cadmium and other heavy metals in the bio-solids are below prescribed limits and, therefore, are not considered hazardous.

2. Water resources

As you may know, it has also been alleged that Coca-Cola India's bottling plant in Kerala,has been misusing local water resources. These allegations are false. Neighboring communities, tribal leaders, non-government organizations (NGOs), environmental scientists and government officials have repeatedly rejected the protestors' allegations as totally groundless.

Here are the facts:

• Since the Kerala plant was built in 2000, Coca-Cola India has complied and continues to comply with all Federal and State laws and regulations in India. We respect and follow local laws.

• In October 2002, Dr. R.N. Athvale, Emeritus scientist at the National Geophysical Research Institute in Hyderabad, India, stated in his report: "There is no field evidence of overexploitation of the groundwater reserves in the plant area." He added that any aquifer depletion cannot be attributed to the water extraction in the plant area. A report from the local Palakkad District Environmental Protection Council and Guidance Society in June 2002 concluded: "We declare that there is no environment harassment to the public by the factory at any level."

• In the past two years, annual rainfall in Kerala decreased by about 60 percent.

• The bottler has installed an advanced rainfall harvesting technology to help recharge the area's groundwater reserves. We've joined with NGOs, tribal leaders and government officials to share the technology and equipment with neighboring villages. To supplement existing water sources, we also dug a bore well for the neighboring village, which we continue to supply with two tankers of fresh water daily.

• The water from the factory's seven standard-depth bore wells that is not used in making products is put to secondary applications or recycled back into the ground, using Government-compliant irrigation techniques.

• The technology our wastewater treatment plant uses is among the most advanced in the world. The technologies are also equivalent to most Coca-Cola bottling plants in the United States and Europe. Further, our effluents comply with standards and norms set by the Kerala State Pollution Control Board. We constantly monitor the quality of the effluents to prevent pollution.

• The latest detailed investigation just released by the Kerala State Groundwater Department has rejected the allegation that one of the reasons for water shortage in the area is 'overexploitation' by the plant and instead points to "poor rainfall during the last few years" as "an important reason for the low water level in the open wells in the area."

• By rapidly expanding the capacity of our rain water harvesting technology at this plant, our aim is to become a net contributor to water in the area by the end of 2004. In other words, our plant will re-charge several times more water to the aquifer than it uses.

Coca-Cola India shares the aspirations of the people of Kerala to spur economic growth and create more local jobs. Since investing in Kerala in 2000, the local communities have welcomed our business as a good corporate neighbor. We built the plant at the invitation of the Kerala State Government and today the plant directly employs 141 people and 300 contractors -- who are drawn primarily from neighboring communities. It is estimated for every direct job in our business, 10 indirect jobs are created as a result of inputs, goods and services that we buy primarily from local businesses. In addition, nearly 24,000 self-employed people in the state are retailers of our products.

Product Quality in India

In August 2003 India's Ministry of Health & Family Welfare commissioned accredited Indian laboratories to perform tests on our soft drinks throughout the country. The Ministry of Health & Family Welfare confirmed that our products in India are safe.

In India, as in the rest of the world, our plants use a multiple barrier system to remove potential contaminants and unwanted natural substances, including pesticides. Our products in India are safe and are tested regularly to ensure they meet rigorous standards. These tests include testing for pesticides and insecticides.

India: News
India: Key Facts
India: Community Support