introducing carbonated beverages into markets throughout India that had never had it before. The southern state of Kerala banned the manufacture and sale of all Coke and Pepsi products while other states cut soft-drink sales in schools, colleges, and hospitals. Lessons learned: Both companies went on the attack against CSE and made general statements that their products were safe. Madan Bahal, managing director of AdFactors Public Relations, a Mumbai-based firm that represents international companies such as IBM India, Barclays Bank, and ABN Amro Banking Group suggested that “a better approach would be a more ‘substantive response’ on precisely what levels of pesticides are in their drinks, why that isn't a health threat, and exactly what both companies do to keep it that way (Bremner & Lakchman, 2006).” Bahal also pointed out the contrasting approach that Cadbury India took three years prior when live worms were reported in the company's chocolate products in Mumbai. “When Indian government lab reports confirmed the problem, the company quickly investigated and overhauled its packaging procedures to calm consumer fears. That quick action and candor, plus recruiting Bollywood legend Amitabh Bachchan as a new pitchman, quickly restored the brand image (Bremner & Lakchman, 2006).” Both companies also should have addressed on a global scale the local populations’ concerns regarding their use of India’s valued water supply and the public’s fear of water shortages. “Rather than promote the company's efforts to improve water and crops, Pepsi had run splashy ads bursting with Indian celebrities. It painted titanic versions of its red, white, and blue logo on ancient Himalayan rocks and buildings around the country (Brady, 2007).” PepsiCo implemented new measures to cut down its water consumption. One bottling
PEPSI Confidential -29-