Coca-Cola loses monopoly

14.12.05

by Barbara Scott
Scottish Socialist Voice
25th November 2005

Campaigners against the soft drinks giant Coca Cola received some good
news this week. The multinational has been fined almost £40 million by
the Mexican federal competition commission for “monopolistic practices”.

What’s most amazing about this story is that the case was brought by
the owner of a tiny, one-room shop in the working-class Iztapalapa
neighbourhood of Mexico City.

Raquel Chavez took on Coca Cola when the company and its distributors
tried to bully her into taking rival drinks off the shelves of her
shop. Mexico has the highest per capita consumption of fizzy drinks in
the world, and Coke has a 70 per cent share of the market.

However Big Cola, a rival brand made in Peru, started to become
popular with Raquel’s customers as it is cheaper and is sold in
extra-large bottles.

The distributor told her that she would have to stop selling Big Cola
in her shop or they would refuse to supply her with Coca Cola any
more. They also threatened to remove branded fridges, awnings and free
gifts which attract customers to the shop.

“You may call the shots everywhere else, but I’m the boss in my
store,” Raquel bravely told the Coke distributor at the beginning of
her personal battle against the giant.

She knew that she would go out of business if she could not sell Coke,
so in a David and Goliath battle, she took the multinational to court – and won.

Her complaint to the competition commission was eventually accepted
and other evidence of similar incidents was uncovered. The commission
ruled, after a two year struggle, that 15 Coke bottling companies had
violated anti-monopoly laws and fined them £8.6million.

This was followed by another complaint from Pepsi which also ruled
against Coca Cola, and a further fine of £3million was imposed.

This case represents a victory for working class people everywhere,
and especially in Latin America where Coca Cola is implicated in
appalling human rights abuses previously documented in the Voice,
including the murder of trade union leaders working in Coke bottling
plants in Colombia.

An International Boycott of Coca Cola was launched in 2003 in response
to these abuses and to the soft drinks giant’s other activities
ranging from the bullying tactics experienced by Raquel Chavez in
Mexico to the theft and poisoning of water supplies in India.

Campaigners also want the unhealthy drinks to be banned from sale and
advertising in schools because of their effect on children’s health.

Raquel’s victory is inspirational for the campaign as it is a sign
that Coca Cola can be beaten.

This story has helped bring the issues about the company into the
mainstream media – and last week BBC2’s Money Programme featured Coke
on the Rocks, a documentary about the boycott.

The boycott is spreading and Raquel’s successful struggle will
encourage and inspire us to keep up the fight.

Read more Denuncias

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