Jallikattu impact: sale of carbonated drinks dips in Tamil Nadu

Sale of multinational brands of carbonated drinks such as Pepsi and Coca Cola, have come down by over 85 per cent in supermarkets in Chennai in the last one week.

Retailers cite the recent protests in Tamil Nadu and their call to boycott foreign products as reasons for the drop in sales.

Tamil Nadu witnessed one of the biggest youth movements starting January 17 against the Supreme Court ban on bull-taming sport jallikattu.

While the protest largely focussed on the sport, it also advocated boycott of products such as carbonated drinks.

The sentiment seemed to have had an effect on sales of carbonated drinks in Chennai and other parts of Tamil Nadu.

A business head of a supermarket chain in Chennai, said that while the chain’s overall sales were good in the State, people hardly touched carbonated drinks produced by multinationals.

Pointing to an untouched shelf of carbonated drinks, he said, “The rack showcasing carbonated drinks remained untouched. Some customers had reservations to buying snacksas well,” he said.

Another store manager reflected the sentiment.

“Though we will continue to stock these drinks, we need to take a call on the volume,” the manager said.

Beverages account for about small percentage of overall turnover and discussions are on about stocking local products like Bovonto and other healthier beverage options, he added.

According to spokesperson of Future group that owns Big Bazaar, “Big Bazaar has always been a store that is designed to meet all the requirements of the catchment and community around it. At this point in time in many of our stores in Tamil Nadu, demand for certain carbonated drinks and snacks have declined sharply so we are taking a call of stocking them based on the demand.”

Even as supermarkets are facing a slump in sales, a trade association in Tamil Nadu has decided to call for a boycott on sale of Pepsi and Coca-Cola from March 1 and promote local products like Bovonto in its member stores.

This decision has evoked mixed response from its members.

B Rathnam, a member of the association, restocks about 20-30 cases of carbonated drinks twice a month.

He is not sure if he can restock given that they cannot sell these drinks from March.

Rathnam said though sales have come down for said carbonated drinks, local alternatives are not popular among people.

“We have to surrender coolers to companies. Since they constitute less than 10 per cent of total turnover, I will either have not take off beverage category or invest in coolers that might prove expensive for me.”

In response to the trade association’s decision, Indian Beverage Association has clarified saying that the major players in beverage industry have made significant contribution by providing employment to around 3.5 lakh people and has improved livelihoods of over 5 lakh farmers and about 40 lakh retailers in the country.

Arvind Verma, Secretary General, Indian Beverage Association, said in a press release, “The proposed call is not just against the interest of the farmers, traders and retailers of the State, it also undermines the role that the industry can play in economic growth and development.”

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