Case against Coca-Cola Kerala State: India In a number of districts of India, Coca Cola and its subsidiaries are

accused of creating severe water shortages for the community by extracting large quantities of water for their factories, affecting both the quantity and quality of water. Coca Cola has the largest soft drink bottling facilities in India. Water is the primary component of the products manufactured by the company. There have been numerous public protests of The Coca-Cola Companys operations throughout India, involving thousands of Indian citizens and several non-governmental organizations. Protests against the Coco Cola factories have taken place in a number of districts including: Mehdiganj near the holy city of Varanasi; Kala Dera, near Jaipur, Rajistan; Thane district in Maharashtra; and Sivaganga in Tamil Nadu. The protests by villagers from Plachimada, in the southern state of Kerala have shown the strength of community-led activities, even against this global multi-national company. Through round-the-clock vigils outside the factory gates, they have managed to temporarily shut down Coca-Colas local bottling plant. As of early 2007, the factory had remained closed for a number of years and a combination of community action and legal redress was aimed at permanent closure. Background to Coca Cola ground water exploitation case in Kerala In 1999, the Hindustan Coca-Cola Beverages Private Limited, a subsidiary of the Atlanta based Coca-Cola company, established a plant in Plachimada, in the Palakkad district of Kerala, southern India. The Perumatty Village Council gave a licence to the company to commence production in 2000. Coca Cola drew around 510,000 litres of water each day from boreholes and open wells. For every 3.75 litres of water used by the plant, it produced one litre of product and a large amount of waste water. Two years after production began protest by local residents became common place. Local communities complained that water pollution and extreme water shortages were endangering their lives. In 2003, women from the Vijayanagaram Colony in the village of Plachimada, protested that their wells had dried up because of the over exploitation of groundwater resources by the Cocacola plant. They complained that they now had to walk nearly five kilometres twice a day to fetch water. They also argued that the little which was left was undrinkable and when used for bathing the water burned their eyes and lead to skin complaints. Aside form these health issues, the depletion of groundwater resources also affected the ability of local residents to raise their crops of rice and coconuts. In April 2003, the Perumatty Grama Panchayat (Village Council) refused renewal of CocaColas licence to operate on the grounds that it was not in the public interest to renew the licence stating:

the excessive exploitation of ground water by the Coca-Cola Company in Plachimada is causing acute drinking water scarcity in Perumatty Panchayat and nearby places The Village Council considered revocation of the licence to be necessary in order to protect the interests of local people. Permatty Grama Panchayat v state of Kerala In December 2003, the Village Councils decision was challenged in the High Court of Kerala State. The Court considered two issues: the question of the over exploitation of ground water, and the justification for the Village Councils decision to revoke the licence. The Court recognised that the State as a trustee is under a legal duty to protect natural resources. It considered that these resources, meant for public use, cannot be converted into private ownership. The residing judge, Justice K Balakrishnan Nair, asserted that the government had a duty to act to protect against excessive groundwater exploitation and the inaction of the State in this regard was tantamount to infringement of the right to life of the people guaranteed under Article 21 of the Constitution of India. The High Court ordered the plant to stop drawing the groundwater within a month, ruling that the amount of water extracted by the plant was illegal. But at the same time, it ordered the Village Council to renew the licence and not interfere with the functioning of the Company as long as it was not extracting the prohibited ground water. Coca-Cola refuted the accusations of excessive exploitation and pollution and lodged an appeal. The next few years saw a confusing array of legal battle between the Village Council and the company. In 2005, the divisional bench of the High Court granted permission for the company to extract 500,000 litres from the common ground water per day in the year 2005-2006. The Court also affirmed that the Village Council was not justified in cancelling Coca Colas licence to operate until a full scientific assessment had been made of the facts. The Plachimada story March 2000 Factory established April 2002 Agitation by the villagers commences March 2003 Village Council refuses to renew licence May 2003 State government stays the Village Council decision Dec 2003 Single judge bench of the Kerala High court upholds the Village Councils decision

21 Feb 2004 The Government ordered the company to stop drawing ground water from the plant 12 March 2004 Coca Cola company suspended production saying it was left with no option but to close the factory down in the long run 29 March 2004 Village Council refused to renew licences again saying company had failed to meet conditions to: stop using ground water; demonstrate that its products were safe, and prove the non-toxicity of its solid waste 3 April 2004 Irate villagers blocked tanker lorry taking water to the plant and police arrested 44 villagers April 2005 A High Court Division Bench allows appeal by Coca Cola and permits the company to draw 500,000 litres of water per day. Orders the Village Council to renew licence May 2005 Village Council files special leave petition in the Supreme Court 1 June 2005 Company approaches the High Court again as the Village Council did not renew the licence. The court orders Village Council to renew the licence within 7 days, or it would be deemed that the licence stands renewed for two years from 10 June 2004 6 June 2005 Village Council informs the company that licence will be renewed for three months; asks them to remit the fee and collect licence 17 August 2005 A group of about 100 activists from Yuvajana Vedi youth organisation march to factory gates. Heavy police force severely injured 4 protestors who were hospitalised and arrested 43 activists 19 August 2005 The Kerala State Pollution Control Board ordered the stoppage of production at the Plachimada factory for failure to comply with pollution control norms 15 September 2005 Kerala State Government lends its support for the people against the company November 2005 High Court rejects the companys petition that since Village Council did not keep up the stipulated time frame, it should be deemed that the licence stands renewed for two years. The company ought to have accepted the opportunity to function for three months. But the court again orders the Village Council to renew the licence November 2005 Village Council files against the latest High Court order in the Supreme Court

4 Jan 2006 Village Council reissued a licence to the company for three months but laid out thirteen conditions, the first of which is that the company shall not use groundwater from Perumatty Panchayat for industrial purposes, or for producing soft drinks, aerated carbonate beverages or fruit juice June 2006 Meeting with community leaders ends in major commitment from Kerala state officials for pro-active action against Coca Cola 10 August and 11 August 2006, the Government of Kerala and the State Food (Health) Authority, respectively, banned the manufacture and sale of Coca-Cola in the State on the grounds that it was unsafe September 2006 High Court of Kerala set aside the orders of the Government of Kerala and the State Food (Health) Authority SOURCES: Based on article by P.N. Venugopal, 27 Jan 2006, Quest Features and Footage, Kerala, cited on Together India website, with additional information from Asian News International 20 August 2005; the Hindu Newspaper 20 August 2005; the Indian Resource Centre, 17 August, 2005; The Hindu newspaper, 25 October, 2005; Coca Cola Company Website, Press releases. In August 2005, the plant was closed once again, this time by the Kerala State Pollution Control Board. The Board had sought clarification from Coca Cola of the excessive amount of Cadmium in the effluent. G Raja Mohan, the President of Kerala State Pollution Control Board stated: In the waste water treatment sludges we have found contents of Cadmium abnormally high. It goes up to 600 percent above the permissible limit. In the ground water the content of Cadmium is not that much. So, there is something which they are using in the raw materials. In October 2005, the State Government of Kerala announced it would support the Village Council local activists by challenging Coca Colas right to extract water from common groundwater resources in the Supreme Court of India. In an official press release, Health Minister K. K Ramachandran said: the Government will stand by the people in whichever court the company goes. The right over water and air is the right to live. The Government will not allow stopping of these two lifelines of the people. On 4 January 2006, following decisions of the Kerala High Court, the Village Council renewed the Coca Cola companys licence for three months but laid out thirteen conditions. The first of these was that the company shall not use groundwater from Perumatty Panchayat for industrial purposes, or for producing soft drinks, aerated carbonate beverages or fruit juice. The Village Council cited the 2004 Supreme Court decision of M C Mehta v Union of India and the notification by the Kerala State Groundwater Department that village is over exploited with regard to groundwater. Supreme Court Judgement recognises the right of citizens to use water In M C Mehta versus Union of India 2004(12) SCC118, the Supreme Court of India recognised

that: Groundwater is a social asset Citizens have the right to the use of air, water and earth as protected under Article 21 of the Constitution (the protection of life and personal liberty) It further states that the environmental balance is to be maintained and wherever groundwater is required for domestic and agricultural needs, priority is to be given to these. Source: PN Venugopal, 27 Jan 2006, Quest Features & Footage, Kerala, cited on Together India website In June 2006, the newly elected State Government of Kerala assured community leaders that it will take proactive measures against the Coca-Cola bottling plant in south India. On June 15th 2006, Chief Minister Mr. V. S. Achutanandan and other cabinet members submitted a memorandum outlining their demands. These demands included the permanent closure of the bottling plant in Kerala, compensation for the affected community members and prosecution of the Coca-Cola Company for criminal offences. In August 2006, this brought a new twist to the ongoing saga. The Kerala State Pollution Control Board ordered a ban on the manufacture and sale of Coca Cola in the State questioning the safety of the product itself, based on allegations that it contained pesticides and harmful chemicals in a report by an NGO, the Centre for Science and Environment, New Delhi. Coca Cola put out a press release stating: We are completely confident in the safety of our soft drinks in India because they are produced to the same level of purity, regarding pesticides, as the stringent EU criteria for bottled water. We support the adoption of stringent, science-based rules by the Indian government regarding levels of pesticides in soft drinks. The rules should be based on sound and validated testing methodologies. We continue to work with relevant government bodies, industry associations, non government organizations (NGOs) and the scientific community to develop and finalize criteria and associated testing methods for pesticides in soft drinks. We have the same uncompromising commitment to product safety and quality in India and everywhere we offer our beverages around the world, and independent third parties regularly audit all plants for compliance. The Coca-Cola Company has stringent criteria for all of the ingredients used in our beverages. These criteria are backed by internationally accepted analytical testing protocols for these ingredients. Our soft drinks in India have been regularly tested and evaluated by the world renowned and independent Central Science Laboratories (CSL) and all tests show no detectable level of pesticides. Coca Cola Media Statement Regarding the Safety of Coca Cola Soft Drinks in India, 9 August 2006.

However, in September 2006, the High Court of Kerala set aside the orders of the Government of Kerala and the State Food (Health) Authority banning the manufacture and sale of Coca-Cola in the State. The High Court observed that the ban could not be justified since it was based solely on a report by an NGO. The State Government of Kerala has now challenged the extraction of water by Coca Cola in proceedings before the Supreme Court. The State Government argues that the company is taking water from poor communities, but according to a press article in October 2006, the Village Council was not pressing for the case in the Supreme Court to be listed for hearing. It appears to believe that as long as the conditions imposed by the Village Council are not fulfilled, the plant cannot reopen. Nevertheless, water remains a problem for the villagers. With its groundwater still polluted, Plachimada now gets its drinking water through pipes, that provide water for only a few hours once in two days, and through tanker lorries which also arrive once in two days. Fifteen tankerlorries of water are supplied by the government, and 15 more by the company. Villagers remain particularly concerned at the pollution of the scarce remaining groundwater and land which they blame on the discharge by the Coca-Cola company of its waste into the surrounding fields. Although the Coca Cola factory in Plachimada has remained closed since 2004, locals are not satisfied with simply closing the plant; they want justice for the damage caused to health and the environment. As the protestors complain: Its true that the company is not functioning, but that is not enough. We must get compensation for all the crimes committed by the company. Whether or not the ban finally stays, the agitation in front of the factory gate is continuing. As Kaliamma, one of the several tribal women squatting in the temporary agitation tent says: Our problems have not been solved. Global protests against Coca Cola Protests about over-extraction of ground water in India and Sri Lanka by Coca Colas subsidiary companies are impacting on the parent company. Strong concerns dominated the companys annual general meeting on 19 April, 2006, in Delaware, USA. A group of protesters shouted outside the meeting, waving banners with messages such as: Coca-Cola: Stop De-Hydrating the World and Coca-Cola: Destroying Lives, Livelihoods and Communities. Inside the meeting, nearly 20 shareholders spoke on behalf of campaigns from India and Colombia. A proposal tabled by a shareholder called on the company to prepare a report on the potential environmental and public health damage of each of its plants, affiliates and proposed ventures extracting water from areas of water scarcity in India, but failed to receive any positive response from the company.

In its statement against the proposal, Coca Cola stated that it recognizes that water is a precious natural resource under growing stress around the world. It set out the actions that the company has taken to address the risks associated with water extraction and dealt with the complaints in Kerala. As to groundwater issues in southern India specifically, the Kerala High Court ruling released in April 2005 (the result of a year-long independent study) stated that our facility was not the cause of water shortages in that community. The study showed that a cycle of three years of short monsoon seasons in the Kerala area was the main contributor to the local water shortages. Through our rainwater harvesting efforts in several communities and plant operations in India, we currently are returning a significant portion of the water we remove from aquifers for production purposes. Additionally, the Company has initiated partnerships to set up local rainwater harvesting projects in communities around the country and to mobilize local residents behind these water conservation efforts. These projects combine modern technology with the reinstatement of traditional methods of water management that had fallen into disrepair in some local communities. The Board understands the need and desire for transparency in all matters including environmental safety and health issues related to our operations in India and elsewhere. However, we feel that this proposal is unnecessary at this time because our above-described existing environmental, health and safety policies, practices, and reporting methods provide a wide range of information regarding the impacts of our operations throughout India and the world. Furthermore, the Board believes that producing the report called for in this proposal would create a redundant use of Company human and financial resources. The campaign against Coca Cola has spread, particularly on college and university campuses, as well as among trade unionists and religious organisations. The India Resource Centre published a press release the day following the Shareholder meeting stating: Even as Coca-Cola officials were trying to deal with the scores of protesters at its meeting, the campaign to hold Coca-Cola accountable was producing damning results for the company. The Union Theological Seminary in Manhattan, New York, a graduate school of theology which trains students to be ministers in the Christian faith, just announced on Tuesday that it was banning the sale of Coca-Cola products on its campus. In India, a new campaign was announced in Gangaikondan, in the southern state of Tamil Nadu, against a Coca-Cola bottling plant under construction. And a massive rally is planned in Plachimada, Kerala on April 22, where Coca-Colas bottling plant has remained shut down for over a year because the village council has refused to renew Coca-Colas license to operate. In November, 2006, the Chairman and CEO, The Coca-Cola Company, E. Neville Isdell, spoke about the challenges to Coca Cola in India at the Nature Conservancy in Atlanta, Georgia, USA. He remarked:

In India, we have been challenged to demonstrate our commitment to water stewardship. While we are not even close to being one of the largest users of water, we are certainly one of the most visible, and have been subject to criticism that we are depleting groundwater aquifers in the State of Kerala. Let me be very clear: Coca-Cola has a shared interest with the communities where we operate in healthy watersheds because they sustain life and our business. And the last thing we would ever do is spend millions of dollars to build a plant that would run itself dry. Accordingly, we are working with many partners across India to improve watershed management, and with the Central Ground Water Authority, local governments and communities to expand the use of simple and effective rainwater harvesting technology. To date, we have installed rainwater harvesting systems in 200 locations, including schools and farms, that are helping recharge aquifers when the rains come. Sources: This section is based on a wide variety of sources including court judgements, press releases and official statements from Coca Cola. These include: Permatty Grama Panchayat vs state of Kerala, High Court of Kerala 2003; Coca-Cola: Continuing Battle in Kerala, Coca-cola plant must stop straining water Indian Resource Centre July 10, 2003; Coca-cola plant must stop straining water, The Guardian 19 December 2003; W.A.N0.2125 of 2003 and W.A.N0215 of 2004 Judgment 7th day of April 2005, M. Ramachandran and K.P Balachandran, JJ High court of Kerala 2005; Coca-Cola Protestors Attacked by police: four hospitalized, R. Ajayan, Plachimada Solidarity Committee (India) Amit Srivastava, India Resource Center, August 2005; Kerala Pollution Board orders Coke plant to close, Asian News International 8/20/2005; State defends village council decision to revokes Indian licence, Indian Resource Centre, September 2005; Health Minister: Coke plant will not be allowed to function The Hindu, 25 October2005; Kerala Government Assures Proactive Action Against Coca-Cola Meeting with Community Leaders Ends in Major Commitments from State Officials, Indian Resource Centre : 19 June, 2006; Kerala assures proactive action against Coca-Cola one world. South Asian; Article by M Suchitra and O.N. Venugopal, 03 Oct 2006, The Quest Features & Footage, Kochi, cited on the India Together website; Shareowner Proposal Regarding Environmental Impacts of Operations in India (Item 7)by William C. Wardlaw, III, Annual Meeting of Coca Cola Shareholders, 2006; press releases, Coca Cola Company; articles from the India Resource Centre website.

Introduction Water is the most important necessity for life. The drinking-water needs for individuals vary depending on the climate, physical activity and the body culture. but for average consumers it is estimated to be about two to four litres per day. The growing number of cases of water borne diseases, increasing water pollution, increasing urbanization, increasing scarcity of pure and safe water etc. have made the bottled water business just like other consumer items. Scarcity of potable and wholesome water at railway stations, tourists spots, and role of tourism corp. etc. has also added to the growth. Indians currently spending about $330m a year on bottled water, analysts estimate. The packaged water market constitutes 15 per cent of the overall packaged beverage industry, which has annual sales of at least $2.6bn, Deepak Jolly, a spokesperson for Coca-Cola India said. Almost all the major international and national brands water bottles are available in Indian market right from the malls to railway stations, bus stations, grocery stores and even at panwala's shop. Before few years bottle water. was considered as the rich people's choice, but now it is penetrated even in rural areas. The growth and status of Indian Bottled Industry in comparison with Western or Asian market, India is far behind in terms of quantum, infrastructure, professionalism and standards implementation. The per capita consumption of mineral water in India is a mere 0.5liter compared to 111 liter in Europe and 45-liter in USA. Also As per UN study conducted in 122 countries, in connection with water quality, India's number was dismal 120. In comparison to global standards India's bottled water segment is largely unregulated. Former President Dr. A.P.J. Abdul Kalam has urged youngsters on July 17, 2010 to be aware of water conservation techniques to avoid grave water crisis in future."It is so sad that today, people are forced to buy water in plastic bottles. I am told that bottled water industry is worth nearly 10000 crore rupees and even big companies like the Coke and Pepsi are involved in this bottling of water and making money. So, it is imperative that we ought to save water," he added. Do not be surprise if today's bottles water industry becomes next Oil industry by 2025.

Bottled Water Industry in India Water Shortage and Health Awareness Driving Bottled Water Consumption in India. The Indian market is estimated at about Rs 1,000 Crore and is growing at whopping rate of 40 per cent. By 2010, it will reach Rs 4,000 -5,000 Crore with 33 per cent market for natural mineral water. According to a national-level study, there are more than 200 bottled water brands in India and among them nearly 80 per cent are local brands. In fact, making bottled water is today a cottage industry in the country. Leave alone the metros, where a bottled-

water manufacturer can be found even in a one-room shop, in every medium and small city and even some prosperous rural areas there are bottled water manufacturers. While India ranks in the top 10 largest bottled water consumers in the world, its per capita per annum consumption of bottled water is estimated to be five litres which is comparatively lower than the global average of 24 litres. Today it is one of India's fastest growing industrial sectors. Between 1999 and 2004, the Indian bottled water market grew at a compound annual growth rate (CAGR) of 25 per cent - the highest in the world. The total annual bottled water consumption in India had tripled to 5 billion liters in 2004 from 1.5 billion liters in 1999. Global consumption of bottled water was nearing 200 billion liters in 2006.

Bottled water top players in India The market leader is Bisleri International, which boasts a 40 per cent share. It is followed by Coca- Cocas Kinley (around 25 per cent) and PepsiCos Aquafina (around 10 per cent). The top players in bottled water industry in India are the major international giants like Coca cola, Pepsi, Nestle and noticeable presence of national players like Mount Everest, Manikchand, Kingfisher, Mohan Meakins, SKN Breweries , Indian Railways so on. With increasing competition, this sector will register a robust growth in 2010, predict industry analysts. To take on rivals in this sector, PepsiCo India is drawing up a fresh game plan which includes, investment in capacity enhancement, packaging initiatives and below-the-line activities to pump up volumes in the over-crowded category. Meanwhile, swadeshi major Parle Agro is extending the manufacturing facility for Bailley from 29 to 60 plants this year. While swadeshi major Bisleri International is beefing up its distribution, manufacturing and marketing operations, Coca-Cola India is sharpening its focus on packaging initiatives of Kinley to woo new consumes. In essence, the packaged water industry in India will soon witness a major tussle between swadeshi and videshi players to gain market and mind share. The western region accounts for 40 per cent of the market and the eastern region just 10. However, the bottling plants are concentrated in the southern region - of the approximately 1,200 bottling water plants in India, 600 are in Tamil Nadu. But a major problem is southern India, especially Tamil Nadu, is water starved. Top multinational players such as Coca-Cola and PepsiCo have been trying for the past decade to capture the Indian bottled water market. Today they have captured a significant portion of it. However, Parle Bisleri continues to hold 40 per cent of the market share. Kinley and Aquafina are fast catching up, with Kinley holding 20-25 per cent of the market and Aquafina approximately 10 per cent. The rest, including the smaller players, have 20-25 per cent of the market share.

History of Bottled water in India Mineral bottled water in India under the name 'Bisleri' was first introduced in Mumbai by Bisleri Ltd., a company of Italian origin in 1965. Mineral bottled water were in glass bottles in two varieties - bubbly and still in 1965 This company was started by Signor Felice who first brought the idea of selling bottled water in India.

Parle bought over Bisleri (India) Ltd. In 1969 and started bottling Mineral water in glass bottles under the brand name 'Bisleri'. Later Parle switched over to PVC nonreturnable bottles and finally advanced to PET containers. Since 1995 Mr.Ramesh J. Chauhan has started expanding Bisleri operations substantially and the turn over has multiplied more than 20 times over a period of 10 years and the average growth rate has been around 40% over this period. Presently it have 8 plants and 11 franchisees all over India. Bisler command a 60% market share of the organized market. Currently, Bailley has a national presence in 5 lakh retail outlets across the country. We plan to increase manufacturing plants for Bailley from 29 to 60, presently 40 plants are operational and few more will be ready for operations over the next few months, informed Nadia Chauhan, joint managing director of Parle Agro. Variety of packages Bottled water is sold in a variety of packages: pouches and glasses, 330 ml bottles, 500 ml bottles, one- litre bottles and even 20- to 50-litre bulk water packs. The formal bottled water business in India can be divided broadly into three segments in terms of cost: premium natural mineral water, natural mineral water and packaged drinking water. Premium natural mineral water includes brands such as Evian, San Pelligrino and Perrier, which are imported and priced between Rs.80 and Rs.110 a litre. Natural mineral water, with brands such as Himalayan and Catch, is priced around Rs.20 a litre. Packaged drinking water, which is nothing but treated water, is the biggest segment and includes brands such as Parle, Bisleri, Coca-Cola's Kinley and PepsiCo's Aquafina. They are priced in the range of Rs.10-12 a litre. The FDA also classifies some bottled water according to its origin. Artesian well water Water from a well that taps an aquifer--layers of porous rock, sand and earth that contain water--which is under pressure from surrounding upper layers of rock or clay. Mineral water. Water from an underground source that contains at least 250 parts per million total dissolved solids. Minerals and trace elements must come from the source of the underground water. They cannot be added later. Spring water Derived from an underground formation from which water flows naturally to the earth's surface. Spring water must be collected only at the spring or through a borehole tapping the underground formation feeding the spring. If some external force is used to collect the water through a borehole, the water must have the same composition and quality as the water that naturally flows to the surface. Well water. Water from a hole bored or drilled into the ground, which taps into an

aquifer. Tap Water Some bottled water also comes from municipal sources--in other words-the tap. Municipal water is usually treated before it is bottled.

Why Bottled water? Millions of people, both in rural and urban India, suffer from inadequate or no tap water supply. Even some parts of Mumbai, the country's financial capital, get a mere two hours of daily water supply. The city's Virar suburb gets 45 minutes. So bottled water is much in demand by residents - even though the businesses profiting from the sales are thriving from access to public water sources. Bottled water fills a void created by government failure to address basic services, Peter Gleick of the Pacific Institute writes in its World Water report. "In many parts of the world, tap water is not available or safe to drink," writes . "In these regions, the failure of governments to provide basic water services has opened the door to private companies and vendors filling a critical need, albeit at a very high cost to consumers." The institute reasons that governments should tap into spending on commercial water by consumers to secure funds to provide safe water at fraction of the cost. Bottled water has been treated by distillation, reverse osmosis, or other suitable process and that meets the definition of "purified water". The bottled water treatments include: * Distillation. In this process, water is turned into a vapor. Since minerals are too heavy to vaporize, they are left behind, and the vapors are condensed into water again. * Reverse osmosis. Water is forced through membranes to remove minerals in the water. * Absolute 1 micron filtration. Water flows through filters that remove particles larger than one micron in size, such as "Cryptosporidium", a parasitic protozoan. * Ozonation. Bottlers of all types of waters typically use ozone gas, an antimicrobial agent, to disinfect the water instead of chlorine, since chlorine can leave residual taste and odor to the water.

Bottled Water: How Safe? The bottled water industry has spent billions over the past decade to sell you on the idea that bottled water is better than tap water. Well the short answer is they are both unhealthy. One of the most ironic parts of the bottled water tragedy is that the water bottling industry gets the water free, filters it, bottles it and sells it back to us at 1,900% profit. The ironic part is that tap water is legislated to be 7.0 pH neutral. They first dump a TON of cholrine in the water to kill off all the bad bacteria, this makes it highly acidic. In India around 100 companies sell an estimated 424 million litres of bottled water valued at around Rs 200 crore in the country annually . Most bottlers claim that their water is 100 per cent bacteria-free and contains minerals that make it tastier and healthier. But is the water in these bottles really safe to drink? Do they conform to

international or national standards? To find out, the Ahmedabad-based Consumer Education and Research Society (CERS), an independent non-profit institution with a sophisticated product-testing laboratory, recently carried out a detailed study on 13 major brands of bottled water available in the country. The national brands -- Bisleri (separate samples were taken from their units in Bangalore, Ghaziabad, Calcutta and Baroda) and Bailley (Mumbai and Surat) -- were selected on the basis of their dominant position in the overall market. Bisil (Mehsana), Golden Eagle (Chennai), Aquaspa (Mumbai),Saiganga (Ahmednagar), Nirantar (Thane), Trupthi (Chennai) and Yes (Nadiad) were included because of their regional popularity. To conform to international standards for such testing, 21 bottles of each brand were tested in the CERS laboratory against "analytical" and "sensory" parameters as well as for "microbiological" contamination. To ensure fairness, the results were sent to the individual companies for their comments. So how safe is bottled water? Not that safe, says the CERS survey. As many as 10 of the 13 brands had foreign floating objects in clear violation of norms. Again during a surprise inspection by the health committee chairman Manjunatha Reddy and team at two mineral water units in the Bangalore on January 11, 2011, it was found that mineral water production unit owners were bottling borewell water. The units were also illegally using several branded labels on the bottles to market the water. The standing committee visited a mineral water production unit called AM Enterprises and found the owner selling water without an ISI mark from the Bureau of India Standards. He was found mixing mineral water with borewell water and selling it in cans to the public. Water resources over-exploited The majority of the bottling plants are dependent on groundwater. They create huge water stress in the areas where they operate because groundwater is also the main source - in most places the only source - of drinking water in India.This has created huge conflict between the community and the bottling plants. Private companies in India can siphon out, exhaust and export groundwater free because the groundwater law in the country is archaic and not in tune with the realities of modern capitalist societies. The existing law says that "the person who owns the land owns the groundwater beneath". This means that, theoretically, a person can buy one square metre of land and take all the groundwater of the surrounding areas and the law of land cannot object to it. This law is the core of the conflict between the community and the companies and the major reason for making the business of bottled water in the country highly lucrative. Take for instance the case of Coca-Cola's bottling plant in drought-prone Kala Dera near Jaipur. Coca-Cola gets its water free except for a tiny cess (for discharging the wastewater) it pays to the State Pollution Control Board - a little over Rs.5,000 a year during 2000-02 and Rs.24,246 in 2003. It extracts half a million litres of water every day - at a cost of 14 paise per 1,000 litres. So, a Rs.10 per litre Kinley water has a raw material cost of just 0.02-0.03 paise. (It takes about two to three litres of groundwater to make one litre of bottled water.) On April 7, more than 1,500 villagers defied a police cordon and marched to Coca-

Cola's bottling plant in Mehdiganj village, Varanasi, in Uttar Pradesh state, demanding that the company immediately shut down its bottling plant. In January, the New Delhibased Energy and Resources Institute (TERI) advised Coca-Cola to shut a bottling plant in the drought-stricken state of Rajasthan. India's Ministry of Water Resources has ranked 80% of ground water resources in Rajasthan as "over- exploited" and nearly 34% resources as "dark/ critical", the gravest ranking across the country

Bottled water companies earn high profits What is amazing is that people are prepared to pay Rs. 12 for a liter of water-in India especially when the cost of material input (0.25 paisa per liter excluding labors cost) pales into insignificance before the price of the product. Up to 40% of bottled water comes from the same source as tap water, but is sold back to consumers at hundreds of times the cost, says the website of the North American "Think Outside the Bottle" campaign. Not only the Coca-Cola but there are thousands of brands in India's $445 million packaged water industry. Not just bottlers are involved. In south India, thousands of fuel trucks converted to be water carriers sell ground water to households and establishments at about $10 for 5,000 liters. More than 13,000 tankers carry water drawn from farmland surrounding Chennai, according a social activist R Srinivasan. He estimates a $148 million tanker industry is cashing in on Chennai's acute water scarcity. The story is replicated across India, including in New Delhi.

Plastic Bottles Pollution Tap water is a local product that needs no packaging. Globally, bottled water accounts for as many as 1.5 million tons of plastic waste annually, according to the Sierra Club. In addition, billions of bottles end up in the ground every year. Sadly, only 20% ever get recycled, according to the Container Recycling Institute. The other 80%? Besides landfills, many bottles end up in oceans, posing a risk to marine life. By purchasing bottled water, youre indirectly raising the price of gasoline and contributing to Global Warming and climate change. In 2007, the manufacturers of plastic water bottles generated more than 2.5 million tons of carbon dioxide emissions and required the equivalent of more than 17 million barrels of oil, according to the Pacific Institute. Americans drank more than 30 billion single-serving bottles of water last year. Yet the vast majority of us have an unlimited source of clean, EPA-regulated tap water flowing from our faucets.

Plastic Bottles requires costly Oil Making the plastic in the bottles requires 47 million gallons of oil annually. And that doesnt include the jet fuel and gasoline required to transport the bottles- sometimes halfway around the world.

The anti-bottling protests The anti-bottling protests in India against Pepsi and Coca-Cola echo increased concern in Europe and the United States over the proliferation of bottled water, including the creation of billions of soon unwanted plastic containers. In India, protests against the bottling plant in drought-prone Kala Dera near Jaipur focus on the source of the packaged water and how bottling companies are grabbing underground water. The truth is, many water companies get their water from sources in developing countries, such as India and Fiji. In those places, the companies take water that once belonged to an entire village and buy it for themselves, forcing the villagers to pay for water that they used to be able to use as a community, free of charge. On February 25, 2011 the Indian state of Kerala has passed a bill allowing compensation claims against soft drink giant Coca-Cola over alleged environmental damage caused by a bottling plant. The legislation adopted by the state assembly on Thursday creates a tribunal empowered to process claims for alleged losses resulting from violations of environmental regulations. The Palakkad bottling factory in Kerala was closed in 2005 after protests from activists and residents. A high-level state panel concluded last year that the plant had caused environmental and soil degradation as well as water contamination, and recommended a fine of 47 million dollars. Coca-Cola denied all the allegations.

Pro-tap water consciousness The London Evening Standard newspaper ran a "Water on Tap" campaign in April to have tap water available for drinking in city restaurants and bars. The tabloid reported getting support for its anti-packaged water campaign from the London Chamber of Commerce and Industry, the mayor's office, leading restaurants and chains such as Starbucks, Costa Coffee and McDonald's. Following growing protap water consciousness, bottled water sales in Britain dipped 9% in the year to March 08. Economists at the California-based Pacific Institute that estimated the $100 billion value of the global industry, ask why consumers are readily paying for bottled water typically costing a thousand times more per liter than high-quality municipal tap water. "Are consumers willing to pay this price because they believe that bottled water is safer than tap water?" Pacific Institute experts ask. "Do they have a real taste preference for bottled water? Or is the convenience of the portable plastic bottle the major factor? Are they taken in by the images portrayed in commercials and on the bottles?" The study, conducted by the US-based Earth Policy Institute, says the global consumption of bottled water has grown by 57 per cent over the past five years, despite the fact that the product is often no healthier than tap water and costs up to 10,000 times more. Emily Arnold, the author of report, says that the $100 billion spent each year on bottled water is nearly 7 times the sum invested in providing safe drinking water in developing countries.

Bottled Water law in India The term "mineral water" is misleading because our laws do not stipulate the minimum mineral content level required for water to be labelled as such. Ahmedabad-based Consumer Education and Research Society (CERS), an independent non-profit institution with a sophisticated product-testing laboratory, recently carried out a detailed study on 13 major brands of bottled water available in the country. As many as 10 of the 13 brands had foreign floating objects in clear violation of norms found in the survey. The CERS study indicates that there is an urgent need to revise standards for bottled water.

Health Issue-Purity of bottled water City water systems must issue right to know reports about whats in the water. Bottlers successfully killed this requirement for bottled water. Up to 70% of bottled water is unregulated by the Food & Drug Administration. Acceptance of the supposed purity of bottled water is being undermined in India by the government Health Department's warning of pesticides and contaminating organisms being present in some bottled products. The notion that commercial products taste better has also taken a knock from Decanter, a British magazine, which last December featured top wine tasters testing unmarked samples of water from 22 brands, along with tap water from utility company Thames Water and water from the Decanter office water cooler. The Decanter panel ranked serviced tap water third in the list, above the world's leading brand, Evian (15th), and the world's most expensive bottled water 420 Volcanic (18th) and Bling H20 (22nd out of 24 brands tasted). 420 Volcanic sells at $99 a liter, and Bling H20 (in Swarovski crystal-studded bottles) at $79 a liter. Decanter editor Guy Woodward said the tasting test exposed the "outrageous" prices of mineral water. Traditional Indian methods of cooling and purifying water Now people of India turning their backs on the country's ancient methods of cooling and purifying water. Stored in earthen pots, for instance, it is not only refreshingly cool and tasty but is said to become bacteria-free. Yet the common summer sight of water matkas (earthen pots) in public offices and spaces is giving way to upturned plastic drums dispensing packaged water. Rainwater is safe, doesnt bring about adverse effects. For centuries people have thought rainwater as unsafe, but contrary to their beliefs, as per an Australian study, drinking of untreated rainwater is safe for human health. The study was conducted under the auspices of eminent researchers from Melbournes Monash University. The entire team took a look at 300 homes that used rainwater collected in water tanks as their primary drinking source.This endeavor has been described as a world first study that comes in the midst of growing criticism of bottled water.

New development in bottled water industry Railways hikes capacity of Rail Neer plant at Khagau June 8, 2011: The Rail Neer (mineral water) plant at Khagaul has proved to be a good revenue earner for the railways. The railways has increased its production capacity to one lakh bottles daily to cope with the growing demand in other zones. Soft-drink major hikes prices on rise in VAT Mumbai, May 23, 2011: Soft-drink major Coca-Cola has hiked prices by up to five per cent in at least two major markets such as Maharashtra and Delhi. This is the second price increase being done by the company in the last two months. In April, the firm that sells Thums Up, Sprite, Fanta and Maaza, had hiked prices of its aerated beverages by up to nine per cent due to surging packaging and transportation costs. After the price hike, a 1.25-litre bottle of Thums Up is now available for Rs 39, up from Rs 37. Prices of 200 ml bottles of Sprite, Maaza and Limca are up by Rs 1 from Rs 9. The company has also increased prices of its two-litre bottles of Sprite and Thums Up to Rs 63 from Rs 60. The Indian subsidiary of the US cola giant blames increase in the value added tax (VAT) levied by state governments of Maharashtra and Delhi for the price hikes. The state value-added tax (VAT) has increased to 20 per cent from 12.5 per cent earlier, said senior Coca-Cola India officials. Report prepared by Crisil For the total soft drink (carbonated beverages and juices) market, the report prepared by Crisil estimates it at over 285 million crates (about 20 billion units) a year. The market is highly seasonal in nature with consumption varying from 25 million crates per month during peak season to 15 million during off-season. The market is predominantly urban with 25 per cent contribution from rural areas. Coca Cola and Pepsi dominate the Indian soft drinks market. Mineral water market in India is a 65 million crates industry. On an average, the monthly consumption is estimated at 4.9 million crates, which increases to 5.2 million during peak season. Brands Rebranded To share the largest pie this summer 2011, major companies have rebranded their range of beverages products. For instance, PepsiCo has removed its once famous Fido Dido mascot and appointed Bollywood actor Sharman Joshi as its brand ambassador for its 7Up cold drink, whereas the competitor Coca Cola has removed its tag line "Sedhi Baat No Bakwas" with "University of Freshology" for its Sprite brand. Growing use of packaged mineral water set to boost sales The growing use of packaged mineral water for cooking and washing is set to boost sales in the branded water segment this summer 2011. Bisleri, Tata's Himalayan, Pepsi's Aquafina and UB Group's Kingfisher are some of the brands vying for the top slot in the packaged drinking water space, where prices range from Rs 20 to Rs 120 for a 20-litre can. Railways to set up own bottling plant The Indian Railway Catering and Tourism Corporation (IRCTC) are planning to set up their own bottled water plant in Ambarnath a news on February 20, 2011. The site where the plant is expected to come up is called GIP (Great Indian Peninsula) railway

tank in the MIDC area. Rail Neer is the brand name under which the railways sell purified bottled water across the country. Tatas Loses Dispute Over Himalayan Brand on 17th February 2011 The Tata Group has lost its attempt to gain exclusive rights over the word Himalayan, after its Mount Everest bottled water brand lost out to Bisleri International. Indias Intellectual Property Appellate Board has ruled that registering the word 'Himalayan' does not give exclusive rights to any company to use the term as a trademark for its products. Report Warns Energy Drinks Can Be Dangerous for Kids Popular energy drinks made with caffeine can be dangerous for children and teens, according to a report in the journal Pediatrics on February 14, 2011, which says young people shouldn't consume the beverages. The report found that kids with diabetes, mood disorders and heart, kidney or liver diseases could suffer from heart palpitations, seizures, cardiac arrest or death from consuming the drinks, Bloomberg reported. SC quashes action against Pepsi over pesticide content on Nov. 19 The Supreme Court on November 19, 2010 quashed the prosecution of soft drink giant PepsiCo by the Kerala government over the pesticide content found in its bottles picked at random from the market. A three-judge bench headed by Justice Altamash Kabir set aside the criminal proceedings, mainly accepting the argument of the company that there was no law or standard governing pesticide adulteration in cold drinks. The company had argued that it was following universally accepted norms with regard to pesticide residue in food articles. Coca-Cola Company looking ahead for water Coca-Cola uses 309 billion liters of water annually to produce its beverages. That's about what Atlanta uses in five months, according to the city's Department of Watershed Management. In 2008, the company said, Coca-Cola used 2.43 liters of water to produce an average one-liter beverage. One liter goes into the beverage itself, and 1.43 liters are used for manufacturing processes such as rinsing, cleaning and cooling. The company says its global system of about 1,000 bottling plants is on track to improve water efficiency by 20 percent between 2004 and 2012. India to Serve as Hub for Imported Alaskan Water S2C Global Systems, based in San Antonio, Texas, has announced plans to export 12 billion gallons of water per year from the Blue Lake Reservoir in Sitka, Alaska, to a new, yet-to-be-built water hub on the west coast of India The first shipment to the new hub in India whose location remains undisclosed for security reasons is at least 18 months away, Rod Bartlett, president and CEO of S2C Global, told India-West October 15, 2010. The water hub will be built in the next six months, while custom-built water-transport tankers, costing about $75 million, will be built over the next 18 months. Existing oil tankers cannot be used because of potential contamination from leftover oil residues, he explained. The water will be packaged at the hub, and then distributed in India as well as several GCC Gulf Cooperation Council countries, including Saudi Arabia, Iraq and UAE.

TN Govt urged to take over the sale of bottled water The Tamilnadu Water Supply And Drainage Board (TWAD) Workers Federation on May 15, 2010 suggested the State government take over the sale of bottled drinking water and make it available at Rs. 2 a litre. The State government which was generating a huge income from sale of Indian made Foreign liquor (IMFL) through TASMAC outlets should think of making available good drinking water to people, Federation General Secretary said. The government could earn revenue of Rs 5,000 crore even if it sold water at Rs. 2 a litre, he said adding that multi-national and private companies selling packaged drinking water were earning crores of rupees as profit whereas actual cost of purifying water was less than five paise per litre. Go Green In December 2010 at the Copenhagen Climate talks, organizers wanted to go as green as possible and so they did not provide delegates bottled water and instead offered Copenhagen tap water in corn starch cups. Formation of Indian Beverage Association (IBA) In July 2010 rivals Coca-Cola and PepsiCo have come together along with other beverages makers and bottlers to form the Indian Beverage Association (IBA), which will be the industrys single point of interaction with the government and help companies comply with food safety guidelines and other regulations. Juices maker Dabur, packaging company Tetra Pak, bottling companies Pearl Drinks and Bengal Beverages, energy drink maker Red Bull, and drip and sprinkler s