Big Losses for Coca-Cola
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July 7, 2014 Newsletter
"Coca-Cola sales nosedive in Spain after boycott call over layoff plan," euronews, June 20, 2014
"According to the newspaper El Economista, the sharp fall over a one-year period represents the largest decline ever recorded by the soft drinks giant.
"In January, the company's Spanish subsidiary confirmed plans for a massive cost-cutting operation involving the closure of four of its 11 factories in Spain and the layoff of 1,190 employees, almost a third of the total workforce.
The news gained widespread attention, coming as it did from a profit-making firm in a country where more than one in four of the workforce is unemployed. Street protests followed, as did a campaign for consumers to shun Coke products...
"According to El Economista, in central Spain — the region which includes Madrid — sales diminished by 48.6 percent in the one-year period from 28 February 2013 to 28 February 2014."
Photo from India Resource CenterThe latest blow to Coca-Cola happened on June 18, 2014 when it was forced to shut down its plant in Mehdiganj in the state of Utter Pradesh. But on June 20, the company was granted a temporary stay pending appeal and allowed to reopen. However, Coca-Cola had also built an expanded facility in Mehdiganj which remains shut down. The following excerpts are from a statement released by the India Resource Center:
"Coca-Cola's expanded facility in Mehdiganj has already been built but has not been able to begin commercial operations. The company also faces a major obstacle in its operations because some of the land acquired by Coca-Cola for its plant is community owned land and cannot be used for private purposes. In December 2013, local authorities passed an order to evict Coca-Cola from the illegally occupied land but Coca-Cola approached the courts and obtained a stay order.
"Coca-Cola has also been forced to shut down another bottling plant in India in 2004 — in Plachimada in the state of Kerala, and faces legislation holding it liable for $47 million in damages as a result of its operations. The company is also the target of a major community campaign in Kala Dera in Rajasthan where the community is seeking closure of the bottling plant due to rapidly depleting ground water. Most recently, Coca-Cola's plans to build a new factory in Charba in Uttarakhand were defeated almost as soon as the proposal was made public in 2013, testament to how quickly and efficiently communities can organize and network in India against problematic companies such as Coca-Cola..."
For additional information, check out the sections "Coca-Cola's Water Stewardship in India: A Travesty" and "Reducing Global Water Footprint: Coke's Deceptive Public Relations Gimmick" in "Buying Respectability: Coca-Cola and the Co-opting of the Corporate Social Responsibility Movement ."
Statement on Court Stay Order on Coca-Cola Closure Notice:
Old Bottling Plant Can Temporarily Resume Operations Until Further Hearings
India Resource Center, June 20, 2014
"Coca-Cola Plant Shut Down Mehadiganj in India, Authorities Cancel License," Sagar Media, June 18, 2014
Nandlal Master, Lok Samiti (Hindi) +91 94153 00520,
Amit Srivastava, India Resource Center +91 98103 46161
Boycott Honest Tea!
In 2007, the Port Townsend (Washington) Food Co-op supported the Campaign to Stop Killer Coke and decided to boycott Odwalla. This May, the Campaign was contacted by Janet Welch, the Co-op's board president.
She wrote: "We are 'revisiting' the boycott... Honest Tea is offering to meet with the board and a local videographer has offered to set up a video conference with Coke.
She further noted: "We discussed it at our meeting last week and will schedule time for a discussion and decision at our June board meeting. I believe that almost all of us back the boycott, as have 83% of the members who responded to an online poll."
In June, Janet wrote:
"Just wanted to let you know that in a 6 to 1 vote, this month our board affirmed our participation in the boycott. And the CEO of Honest Tea was concerned enough that he offered to come speak to the board."
Watch Video on YouTubeJosue also informed us: "Coca-Cola is always using children in every advertisement they show in Nicaragua" and "a worker at Coca-Cola told me that some of them are being mistreated verbally by supervisors."
Josue was just 6 years old in 1993 when Coca-Cola advertised throughout the country that purchasers of Coke with winning bottle caps would win substantial sums of money. When more than 8000 people turned in winning caps, the company refused to pay up claiming there had been a printing error. The refusal by Coke to pay led to Nicaraguan people creating a group called God Helps Us to sue Coca-Cola.
A group of 7,000 families won the case but Josue says "Coke gave money to the judges." Now the case has been reopened and Coke is again "buying the judges." Josue and the God Helps Us group is determined to win justice and make Coca-Cola pay up.
The following six-minute video has holders of winning bottle caps, many living in shanties and dire poverty, telling their story about hopes for a better life after learning of their winning only to have Coke shatter those dreams.
Watch Video on YouTubeJosue can be reached at: email: email@example.com; telephone: 505 885 595 26
Fernando Ponce, a development magnate and chief of Coca-Cola distribution company Bepensa of Merida, Mexico is drawing the ire of Holbox Island residents, visitors and environmentalists for trying to grab local land to build a high-end resort in a pristine area that "is largely untouched, replete with mangroves, barely navigable and located in a nature reserve." An Associated Press article, "Resort plans draw fire in Mexico flamingo reserve" (6/6/14), reported "Environmentalists say the canal would threaten the very flamingos and manatees that have made Holbox a mecca for nature tourists.
The Los Angeles Times (10/18/12) reported, "Isla Holbox has sat at the center of a complex legal dispute pitting powerful developers seeking to build a high-end resort against a group of longtime residents who say they were cheated out of their rights...'
"Isla Holbox, Mexico's enchanted island" by Claire Wrathall, Financial Times, January 10, 2014
"Buying Respectability: Coca-Cola and the Co-opting of the Corporate Social Responsibility Movement," we stated:
"Coca-Cola's hypocrisy and attempted deception with respect to children's well-being is further evident on the American Academy of Pediatrics (AAP) 'healthychildren.org' website. There Coca-Cola posts its 'LIVE POSITIVELY Coca-Cola' ad, which is totally inappropriate and disgusting. Shame on Coca-Cola and shame on the irresponsible, money grubbing AAP whose tagline 'DEDICATED TO THE HEALTH OF ALL CHILDREN' which accompanies its logo would be more appropriate if it read 'DEDICATED TO PROFIT, CHILDREN BE DAMNED.' "It should be noted that Coca-Cola has a special McDonald's division inside The Coca-Cola Co. headed by Coca-Cola Vice President Javier Goizueta. McDonald's is a pre-eminent junk food and Coke retailer.
AAP helps to make kids obese and unhealthy by promoting sponsors Coca-Cola and McDonald's. (Photo: The Daily Edge/AP/Shakh Aivazov)
"Doctors are Helping to Market Soda to America's Children"
Tobacco News Analysis & Commentary, April 13, 2011
"The American Academy of Family Physicians (AAFP) has entered into a corporate partnership with the Coca-Cola Company, in which Coca-Cola is providing money to AAFP in return for public recognition, improvement of its public image, distraction of public attention away from the role of Coca-Cola's products in the obesity epidemic, a lucrative marketing opportunity for Coke, and ultimately, an increase in its bottom line (Coke sales)..."
"In 2010, the president of the American Academy of Pediatrics (AAP) helped Coca-Cola market its products by participating in Coke's sponsorship of the 2010 Olympic Torch relay. Not to be outdone, she was joined by a member of the American Academy of Family Physicians and the president of the American Dietetic Association. These health professionals stood shoulder-to-shoulder with top Coca-Cola sales and marketing executives in this major effort to promote Coke internationally...
"By accepting these sponsorships from the leading manufacturers of sugar-laden soft drinks that are contributing to the nation's obesity epidemic, by playing a role in the marketing of these products, and by actively promoting these companies as international leaders in children's health, the American Academy of Family Physicians and American Academy of Pediatrics are butchering the Hippocratic Oath that all of its physician members took. Rather than "doing no harm," these sponsorships are doing tremendous harm to the protection of the public's health by helping these massive corporations market their unhealthy products."
7. Corporate Crime Reporter and IndiaCSR Report on 'Buying Respectability: Coca-Cola Co-opts Corporate Social Responsibility Movement'
"In an open letter to the Calvert Group and the Interfaith Center on Corporate Responsibility (ICCR), Rogers challenges the groups' designation of Coca-Cola as "socially responsible," with detailed documentation of Coca-Cola's human rights, child welfare, and environmental abuses spanning decades...
" 'The scofflaw Coca-Cola Company is out of control and even its biggest cheerleaders and stockholders, Warren Buffett and Bill and Melinda Gates, can't hide the damage their company is doing on a worldwide scale,' Rogers said...
"The report details how NGO's like the American Academy of Pediatrics, Oxfam America, Save the Children and the World Wildlife Fund help the company promote an undeserved image of respectability, which helps shield Coca-Cola from accountability."
"If we lose this fight against Coke,
First we will lose our union,
Next we will lose our jobs,
And then we will all lose our lives!"
--Sinaltrainal Vice-President Juan Carlos Galvis--