Sandesh Prabhudesai
9 December 1997
With Coca-Cola losing its Goa franchise bottlers to Pepsi, the former
is now negotiating with small local bottlers in Goa to produce and
market its famous Bisleri soda while a unit in Mangalore, southwest
Karnataka, has been contacted for bottling its other soft drink
flavours.
As part of its "strategy," Coke officials have decided not to talk to
the media, and Coke officials ask, "Is there any issue to talk about?"
The officials' claim that Coke's regular stock has been reaching the
market without interruption.
The Coke-Pepsi battle took an interesting turn in Goa when the
former's franchise bottler -- the Goa Bottling Company -- terminated
its contract and joined hands with the Pepsi Foods Ltd on November 22.
Coca-Cola India sources claim they were prepared for such an
eventuality though negotiations were on till the last minute with GBC
to continue the franchise. The sources say new Coke bottles were
available in Goa even after the separation was formally announced. And
despite the increase in cost suffered by Coke in having to transport
its bottles over much longer distances, the price line has still been
maintained.
To help the local office tide over the difficulties, 60 officials from
the United States and Delhi have descended upon the small state. At
present, stocked bottles are being marketed, with the bottles coming
from outside the state. However, Coke officials remain unsure for how
long they will be able to carry out this operation of getting bottles
from eight different regions outside the state at a considerable cost
and at a time when the tourist season has just begun.
Negotiations are already on with few small local bottlers, including
the unit who had the Coke franchise in the pre-1977 period (when
Coca-Cola was asked to terminate its operations by the government), to
bottle its popular Bisleri soda. And in order to meet the increased
demand from the state during with the tourist season peaks, a tie-up
with a Mangalorean company has been explored for bottling Coca-Cola,
Fanta and the soft drinks of Parle such as Thums Up, Limca, and Gold
Spot.
Coca-Cola officials are also busy negotiating with GCB to get back its
assets which now belong to the latter, including bottles and crates
worth Rs 130 million. So far, Coke had a 70-per cent market share in
Goa.
The Goa Bottling Company has replaced all the Coke hoardings and other
advertising displays with those of Pepsi while the GCB's red Coke vans
have already been painted blue for Pepsi. Coke is presently being
marketed in hired vehicles.
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