India: Pesticide Claims Shake Up Coke and Pepsi

After allegations of high levels of toxic chemicals in their subcontinental sodas, the U.S. franchises face bans amid a media-stoked uproar

Welcome to the India installment of the fabled cola wars. But this time around, global soft-drink heavies Coca-Cola (KO) and PepsiCo (PEP) are actually on the same side. Their adversaries: a feisty New Delhi-based environmental group, left-leaning politicians in Southern India, and nonstop press coverage that has raised angst levels over pesticide traces discovered in these companies' carbonated drinks. On Aug. 9, the dispute escalated when India's southwestern state of Kerala, home to about 30 million people, banned the Indian subsidiaries of both companies from making or selling their beverages.

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