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Global soft drinks' strategies hit us hard, cry Goa's bottlers

Sandesh Prabhudesai in Panaji

"Liberalisation and globalisation are a curse on the domestic industry," cry out over 175 local bottlers in Goa who are unitedly opposing the ''monopolistic and aggressive marketing strategies'' of the soft drink multinational giants Coca Cola, Pepsi and Cadbury Schweppes.

The Goa Small Scale Bottlers Association has now also demanded to scrap the mega project of Coca Cola, coming up at the Verna industrial estate, enjoying all the privileges including 12-year sales tax exemption.

Although Goa's unorganised soft drink industry still holds over 65 per cent market share by selling around six million crates annually, the local bottlers fear that their market will be wiped away within three years if the ''unethical marketing practices'' of the giants continue.

In order to monopolise and hijack the market, the multinationals have begun offering heavy incentives to the shopkeepers for exclusively storing their products, they allege. "We are just not in a position to compete with them by offering such incentives," admits Rajesh Naik, chairperson of the association.

The bottlers are confused in what manner the authorities could impose market discipline, providing equal opportunity to all the producers to reach the consumer. In the absence of any such regulation, the multinationals are fully concentrating on Goa, which has the highest per capita consumption rate in the country, the state being a favourite tourist destination.

Running a loss-making business is affordable for the soft drink giants, feels another bottler Bruno Dias, since it could increase their market share by leaps and bounds once the local bottlers are totally exterminated. Over 10,000 families are today dependent on the local industry, he adds.

During the last summer, Coke as well as Pepsi were offering 50 per cent discounts on crates. The consumer, however, does not benefit from it.

The small bottlers, against this background, fear further threat from the Rs 300 million new mega plant of Hindustan Coca-Cola Bottling Southwest Private Limited, having a production capacity of 6,000 crates per day. The job potential would be hardly 60 at the fully mechanised plant.

Coke was offering these incentives when they were spending Rs 35 to transport each crate from outside the state by paying sales tax. The new plant has been given 12-year sales tax exemption. This may result in further price-cutting.

The local bottlers are sore over the government's anti-local approach since Coke is provided with all concessions while their industrial subsidy has been withdrawn since 1994, stating that the soft drink industry has reached a saturation point in the tourist state.

In addition, points out Naik, the water requirement of 3.2 million litres per day would also affect the water-starved Verna and port town of Vasco. The ground water table at the Verna plateau would also be affected when Coke digs borewells.

UNI

Goa

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