The pesticide controversy not only raises concern about the cola majors' flouting of safety standards, but also demands a firm response from the government.

The pesticide controversy and the subsequent bans by several state governments has come as a bolt from the blue for the two Cola giants who are already struggling to cope with sluggish sales in the country. And the reactions by PepsiCo and Coca-Cola to the recent pesticide controversy have been nothing short of an anticlimax to the fierce yet festive Cola wars in India. The full page ads in national dailies defending their stance in spite of the controversy, could have a far more damaging impact than anyone can imagine, if proper steps are not taken to enforce stricter safety standards and instill confidence in consumers' minds. However, a significant issue that has been obscured amidst the chaos is whether ethics have been abandoned by the corporates, given the growing number of controversies regarding safety standards in food products, across the globe.

Introduced as patent medicines, Coca-Cola and Pepsi, over the years, established themselves as brand leaders in the "refreshing drinks" category through a combination of diversification, brand extension, aggressive advertising and celebrity endorsements. When fame comes can controversy be far behind? While Europe saw the uprising of a health conscious consumer base attributing "obesity factor" to soft drinks, at least on 10 occasions since 2005, exports of Coca-Cola from India were rejected due to non-conformity with the US FDA standards. In Columbia and Burma, violation of human rights holds the center stage in the controversy. Recently, they were accused of triggering environmental imbalance and practicing double standards in India.

The Analyst Magazine, Thanda Cola, Pesticide Controversy, Celebrity Endorsements, Domestic Markets, Corporate Ethics, Corporate Accountability, Corporate Responsibility, Foreign Direct Investments, FDIs, International Markets, Globalization.