Dive Brief:
- The Economic Times of India is reporting that Coca-Cola will develop a new, fruit-based fizzy drink in that country.
- Details in the report are slim. It's unclear if Coca-Cola would create a new brand or use an existing one such as Minute Maid or Fanta.
- The move comes in apparent response to a challenge from India's prime minister that Coke and rivals such as Pepsi commit to creating drinks for sale in that country that use 5% locally-grown fruit.
Dive Insight:
If the report is true - and it has not yet been confirmed by other media or Coke - it would represent a tremendous victory for Prime Minister Narendra Modi. It would also put tremendous pressure on India-born Indra Nooyi, CEO of rival Pepsi. India has asked that company to commit to reducing the sugar in the drinks its sells in that country and to help the nation create a system to distribute healthier meals to schoolchildren.
Given also that former U.S. President Bill Clinton recently managed to extract concessions from Coca-Cola, Pepsi, and Dr Pepper Snapple at the recent meeting of the Clinton Global Initiative, there seems to be momentum building for efforts in which global leaders apply pressure on companies like these. If someone like Clinton or Modi calls for a worldwide, concerted effort to combat the dangers of soft drinks, soda companies will not be negotiating from a position of power.