Coca-Cola Ally Recommends Bottling Plant Closure in India
New Report Highlights Coca-Cola's Shortcomings in India

For Immediate Release
January 15, 2007

Contacts:
Rameshwar Kudi, India (Hindi only)  +91 9414049053
Amit Srivastava, India  +91 98103 46161  US + 1 415 336 7584

New Delhi (January 15, 2007):  In a major blow to the Coca-Cola
company in India, a report by its ally, the Energy and Resources
Institute (TERI), has called for the closure of one of its bottling
plants in India - in the village of Kala Dera in the state of
Rajasthan.

Citing the widespread water shortages being experienced by villages
around Coca-Cola's bottling plant, the report by TERI released
yesterday recommends that either the Coca-Cola bottling find
alternative sources of water - a highly impractical option - or either
relocate or shut down the plant altogether.

The 500 page report, - "Independent, Third Party Assessment of
Coca-Cola Facilities in India" - came as the result of high profile
student-led campaigns in the US, Canada and the UK.  Over twenty
colleges and universities have removed Coca-Cola products as a result
of the international campaign which aims to hold the Coca-Cola company
accountable for creating water shortages and pollution in the areas
where it operates in India.  The report assessed only 6 of Coca-Cola's
50 bottling plants in India.

The University of Michigan had placed the Coca-Cola company on
probation in 2006 and had asked for an independent assessment of its
operations in India.

"We are absolutely thrilled that finally the source of so many of our
problems, the Coca-Cola bottling plant, will be shut down," said
Rameshwar Kudi of the Kala Dera Sangharsh Samiti, the local group that
has led the campaign for the plant's closure.

It remains to be seen how the Coca-Cola company will respond to the
recommendations by TERI.  But activists in India have vowed to ensure
that Coca-Cola meets the recommendations for Kala Dera.

The report by TERI is a damning indictment of Coca-Cola's operations in
India.

The report takes the company to task for siting its bottling plants
in already water stressed areas, without much thought given to the
impacts on communities.  The report also validates the concerns of
water scarcity and pollution that have been raised by communities in
Kala Dera, Mehdiganj as well as others.  A list of Coca-Cola's
shortcomings, according to the report, follows this press note.

"The report confirms what we have been saying all along.  The
groundwater situation in Mehdiganj is deteriorating, and we are not
going to wait till we also become like Kala Dera.  The company must
stop its operations immediately," said Nandlal Master of Lok Samiti
which is leading the campaign to shut down the Coca-Cola plant in
Mehdiganj.

The report points out the heavy pollution present in the immediate
vicinity of the Coca-Cola bottling plants and calls for additional
studies.  The report also shows that the Coca-Cola company has failed
to meet its own standards regarding waste management, and that the
company has hampered the TERI assessment because it has refused to
share the Environmental Impact Assessments for any one of the six
plants.

It remains unclear as to why the six plants were chosen.  Community
activists would have expected to see the Coca-Cola bottling plant in
Plachimada in Kerala, which has been shut down since March 2004, also
included because the Coca-Cola company is still trying to re-open the
plant.  Similarly, a franchisee operated Coca-Cola bottling plant in
Ballia in Uttar Pradesh should have been included in the assessment
because community members found industrial waste scattered all across
the plant premises less than a year ago.

"Enough is enough.  Now even Coca-Cola's ally in India has found the
company to not be up to the mark when it comes to protecting water
resources and preventing pollution," said Amit Srivastava of the India
Resource Center, an international campaigning group.

"The Coca-Cola company is part of the UN Global Compact and as a
result, it has agreed to uphold the precautionary principle,"
Srivastava continued.  "The Coca-Cola company must apply the
precautionary principle and cease its operations in water stressed
areas as well as areas with excessive pollution around Coca-Cola
plants in India."

The precautionary principle states that "where there are threats of
serious or irreversible damage, lack of full scientific certainty
shall not be used as a reason for postponing cost-effective measures
to prevent environmental degradation."

The India Resource Center has opposed the choice of TERI as the
"independent" assessor of Coca-Cola because the two groups have worked
together in the past, including funding from Coca-Cola to TERI,
co-organizing Earth Day, and TERI naming Coca-Cola as among the most
responsible companies in India in 2001.

Among others, the report notes that:


The Coca-Cola company's decision to site their plants is strictly
driven by business and comes at a heavy cost to the communities. The
report notes that "the basic focus of the Coca-Cola Company water
resource management practices is on business continuity­community
water issues do not appear to form an integral part of the water
resource management practices of the Coca-Cola Company."

The concerns being raised by the community about water scarcity and
pollution have been validated by the report.  The report notes that,
"In general, the community perceptions were found in conformity to the
results obtained from the detailed technical assessment of groundwater
resources."

In Mehdiganj, the site of another vibrant community-led campaign
against Coca-Cola, the report acknowledges that "the water tables have
been depleting and the aquifer may move from a safe to semi-critical
situation."  The Coca-Cola company, on the other hand, has actually
claimed that groundwater levels are rising as a result of its
operations in the past.

The report also found excessive pollution in the immediate vicinity of
the Coca-Cola bottling plants, and has recommended additional studies
to establish the reasons.  "Regional water quality assessment of four
out of six sites (Kaladera, Mehndiganj, Nemam, and Sathupalle)
revealed that villages located in the immediate vicinity of the plant
showed the excess presence of certain parameters. However, since this
assessment here could not relate the regional groundwater quality to
the operations of the Coca-Cola plant, there is a need to carry out a
further detailed study to establish/rule out the reasons for such
presence."

The Coca-Cola company hampered the assessment by not sharing the
Environmental Due Diligence reports (environmental impact assessments)
with the assessment team, citing "legal and confidential" reasons.

The report noted that farmers' rights to groundwater for farming must
be respected, and given precedence over industrial demands for water,
particularly in areas that have been declared critical or
overexploited in terms of groundwater resources.

The report also noted that while the bottling plants assessed may have
met some, but not all, of the government regulatory standards, the
plants had not achieved the wastewater standards set by the Coca-Cola
company itself.  "The presence of faecal coliform and several other
physico-chemical pollutants in the treated wastewater in almost all
the plants calls for an urgent and stringent definition (and
implementation) of standards and practices as well as source
identification."

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