Failure to Yield

Wednesday, May 22, 2013

Coke Nation

The news that Indians consume far less aerated beverages each year than their neighbours in Pakistan and China could be interpreted differently. In comparison to per capita annual consumption of 39 and 21 bottles of aerated drinks in China and Pakistan respectively, average Indian drinks just about 14 bottles in a year. For Coca-Cola this means a serious job at hand for which the company has announced an advertisement budget of $5 billion. For the company, economic growth of a country and its peoples' thirst for aerated beverages is directly coorelated.

Coca-Cola doesn't consider 'negative' publicity for cola behind poor consumption of the aerated beverage in India. As per its books, brand Coca-Cola has registered consecutive growth for past 27 quarters and has been a leader with a brand volume of 30 per cent. For Coca-Cola the target is to turn it into a 'Coke Nation', on the lines of Mexico where per capita annual consumption is 745 bottles..Whether Indian consumer exercises restraint in gulping the drink whose health consequences are all but known, the flipside to the story is that the state governments are falling prey to Coca-Cola's investment plans?

Waste Appetite

The clock has turned full circle! After dumping industrial and toxic trash in the developing world all these years, Europe is now shopping for garbage to keep its cities, schools and homes heated. What better place than the developing world to shop for garbage! Reports indicate that northern Europe needs more than 700 million tons of trash to keep its waste-to-energy plants running. Most of its current demand is either domestically met or from garbage shipped from southern Europe.Yet, the demand is far more than what neighboring countries can spare after meeting their domestic needs.

As more waste incinerators are being built in Sweden, Norway, Austria and Germany to meet the growing demand for heating public places, these countries are left with two options - either encourage households to produce more trash or else import garbage from across the world. For sure, it is easy to import than to produce! A company in England is already shipping some 1,000 tons of garbage to keep its systems running. Since incinerators have cornered environmental controversy in India and for rightful reasons, there exists an opportunity to explore feasibility of exporting as much as 109,589 tonnes of garbage that piles our streets on a daily basis.