Coca-Cola Exploitation: Gaining Control for the Purpose of Profit

Coca-Cola, one of the leading companies in the nation, has influenced millions of people into consuming its refreshing soft drink through the use of mass advertising and the exploitation of what can be an addicting substance. However, although Coca-Cola projects itself as a company set out for the interest of both itself and its consumers, different acts of corruption speak otherwise of the company’s goals. This kind of corruption has been seen in Mexico, where instances with certain political leaders or Coca-Cola workers indicate that the company will use force or feed off the of peoples’ desperation to obtain a profit. Coca-Cola has used its global power and recognition to manipulate Mexico’s workers and people in a long-lasting effort to become the most dominant and profitable company in the world.

            In order to ensure its security and guarantee control of the Mexican economy and market, the Coca-Cola Company set out to instill relations with political bosses in Mexico called caciques. These caciques would provide local store owners with an unlimited supply of Coke to sell on the market. In return, it was asked that the store owner promote the cacique’s preferred candidate in the next local election (“Cold Wars in Mexico”). Customers would receive free bottles of the soda so long as they would vote for the cacique’s preferred candidate, more than likely to be a political member of the Industrialized Revolutionary Party (PRI). This controlled method of campaigning withheld the PRI’s existence in the presidency for over 71 years (“Cold Wars in Mexico”). By working alongside the Coca-Cola Company, PRI leaders such as Jose Santiz were provided with the proper equipment and supplies that would allow a forced sale of numerous cases of the product. Those who disagreed with the Coca-Cola-PRI scheme for mass consumption in Mexico found themselves in danger to beatings or burnings by “thugs” of the area. Affiliating with high Mexican leading organizations like the PRI or caciques gave the Coca-Cola adequate mobility and freedom to impose the sale of its product in massive quantities on a poorer nation.

            While controlling Mexican consumption of Coke from within the government, Coca-Cola also took advantage of its Mexican workers by ignoring tax payments and mistreating even the most loyal workers. In one instance, the Company dismissed sixteen year-long executive, Angel Alvarado Agüero, for denying involvement in an illegal monopolistic action to destroy competition (“Coke’s Crimes in Mexico”). On top of dismissing a loyal worker, Coca-Cola denied him of benefits he had been promised earlier as part of his contract. To make matters worse, Alvarado Agüero explains how he was compelled to sign a letter of resignation in the presence of public witnesses and an armed guard (“Coke’s Crimes in Mexico”). Not only did the Company force his resignation, but afterwards, Coca-Cola tried to deny the fact that Agüero was ever employed in an attempt to steal the revenues properly owed to him. These tactics displayed the corrupt craftiness that the Coca-Cola Company used to refuse payments to Mexico that otherwise may have saved the company from such economic struggles and poverty.

            Despite all of the infringements on Mexico’s people and workers, the Coca-Cola Company has no intention of terminating its corrupt practices. The economic violence placed on these people will only continue as portrayed in a Coca-Cola CEO’s words: “Coca-Cola envisions a world where the ‘C’ in the kitchen faucet doesn't stand for cold” (“The Coke Machine”). The Company intends to fulfill this dream by continuing the mass advertising that already takes place in Mexico. Because the Mexican people are desperate to consume a clean beverage that is not provided for them by water, they have no choice but to resort to the accessible soft drink that is Coca-Cola. This helps Coca-Cola to remain motivated to thrive off of the first belief in their Mission Statement: “Consumer demand drives everything we do” (“Coca-Cola Marketing Strategies”). Today 60 percent of the Mexican soda market is in Coca-Cola’s invisible hands and they will continue to keep moving forward so long as even boycott leaders have proclaimed: “We have a way to get rid of Coke. We will drink every last bottle” (“Coke in Mexico & India”). It is, in fact, this addiction that has kept the Mexican people in an endless cycle of political and economic exploitation by the Coca-Cola Company.

Because Coca-Cola products are consumed in such great quantities and loved by nations worldwide, the illegal monopolistic actions that keep Coca-Cola atop the global company food-chain are mostly overlooked. The wealth associated with the Coca-Cola Company is more than likely going to continue to tempt political leaders like caciques to keep the company flourishing within Mexico. Unfortunately, Coca-Cola is already so involved politically, that when workers such as Agüero try to defend themselves against it, the Company simply needs to use force and manipulation to rid itself of the problem. As long as the product remains in demand, Coca-Cola will continue to impose on the people for the pure purpose of profit.

Brian Feliciano

Sources:
 Coke In Mexico & India: Coca-Cola Targets Indian Drinkers By Cutting Prices | Suite101.com http://www.suite101.com/content/cocacola-drinks-in-mexico-india-a13079#ixzz1LonRjzol

http://www.bibliotecapleyades.net/ciencia/ciencia_industryweapons130.htm

http://www.killercoke.org/crimes_mexico.php

http://www.scribd.com/doc/10552013/Coca-Cola-Marketing-Strategies

http://www.otherworldsarepossible.org/other-worlds/cola-wars-mexico

        

Coca Cola Company: Mexican Economic Tyrant

            The Coca-Cola Company is a worldwide soft drink giant that sells and earns profits in almost every major country in the world.  However, the company does not always conduct their business fairly and often earns great profits at the expense of many people in lesser developed countries.  One of these is Mexico, in which Coke has caused political, social and economic disturbances.  The reason Coke creates these disturbances is to maintain their own economic permanence and profits in the Mexican economy, and the future reprocussions will be the establishment of the Coca Cola as a political and economic dictator that will cause the development of society to slow and eventually come to a stand still.

            The Coca Cola Company has abused the people, workers and government of Mexico and has eliminated any opposition in order to maintain their own dominance.  Coca Cola ruthlessly removes anything or anybody that might be a hindrance, whether it is competing companies or loyal employees, just to bring in the most revenue.  This is prevalent in the cases of Angel Alvarado and Raquel Chavez.  Mr. Alvarado was a loyal employee of the Coca Cola Company, who “was being forced to resign because he refused an order from his boss that violated the company's code of conduct and Mexican law.”  An armed guardsman stood at the door as Mr. Alvarado signed the resignation.  (http://www.killercoke.org/crimes_mexico.php).  Before this, Mr. Alvarado had been deprived of task workers and also denied profit sharing under Mexican law.  Another example of unfair economic activity is when Coca Cola told Raquel Chavez to stop selling Big Cola, a Peruvian competitor to Coca Cola. “In 2003, her customers began asking for rival "Big Cola," which had begun cutting into Coke's market with lower prices. Coke told her to get rid of the brand, but she refused.”  Sixty-eight million dollars worth of fines have been placed on coca cola for its monopolistic practices.  Coke has conducted all of these ill practices all for the purpose of economic tyranny and the highest profits.

            In addition to economic crimes, Coca cola has also corrupted Mexico’s political systems.  Before 2000, the caciques, or political elites who control the soft drink industry, would provide store owners with free Coke, under the condition that they would support the candidate of the PRI or the Institutionalized Revolutionary Party that the cacique preferred.  However, even though this trend was broken when Vicente Fox of the PAN or the National Action Party won the 2000 election, he had previously worked for Coca Cola as president of the Latin American sector of the company.  (Bell)  This is most likely far from coincidence and shows that Coke can even shift the power from one political party to another should they choose to.  The lasting results of this will be an economic dictatorship in Mexico, with there being a political figure head carrying out the orders and wishes of the Coca Cola Company, who will remain “behind the scenes”.  This is highly detrimental as it will give incentive to other economic giants that they can maintain permanence in a market by establishing political control.  This would be highly destructive to societal development, seeing as how no progress would be made as long as the company in control is extracting revenue.

            Finally, Coca Cola has ingrained itself in the social roots of Mexican society.  It is hard to find anywhere in Mexico where Coca Cola is not heavily advertised, even in schools.  Here is an example:

In a note from Xaviera Cabada Barron, Asistente General of El Poder Del Consumidor, she wrote, "Here's the pictures I told you about. The first two pictures are from inside a school in Chilapa Guerrero. You can see the basketball court with the same colors of Coke and behind all the propaganda in the cafeteria. The last two pictures are about the summer camp they organized for the kids. Years ago Coke had said that they were not going to do any propaganda to children under 12. I guess Mexico is the exception."  (http://www.killercoke.org/crimes_mexico.php). 

This heavy advertising ingrains Coca Cola as a natural part of people’s lives and leaves them unwilling to protest the control because of this indoctrination.  This further enhances the tyrannical nature of the Coca Cola Company and serves as a catalyst towards the previously described situation of complete political and economic supremacy by the Coca Cola Company. 

            Coca Cola has a dangerous amount of influence in Mexican politics, market, and even daily lives of ordinary people.  This will eventually cause the company to assume a status of complete authority in all spectrums of the civilization if left unchecked.  Should Coca Cola assume this position, the society’s growth will be halted as long as the company comes out ahead in their sales.  Action must be taken both inside of Mexico as well as from outside authorities and citizens, such as those of the United States and other Latin American countries, in order to reverse this horrific process and return the Coca Cola company to its place as a fair competitor with others in the soft drink industry. 

Vincent Viola

Sources:

http://www.washingtonpost.com/wp-dyn/content/article/2005/11/15/AR2005111501101.html

http://www.killercoke.org/crimes_mexico.php

http://www.inthesetimes.com/article/2840/

Coca-Cola's Exploitation of Mexico

     Coca-Cola is seen as a figure of globalization, operating in over 200 countries all over the world. With Mexico as the largest consumer of Coca-Cola per capita worldwide, it is only second to the United States in overall consumption. So why does Coca-Cola sell so much in Mexico? “A number of other factors contribute to high cola-sales. In many places, such as San Chamula, the water is undrinkable. Locals turn to the safety in bottled drinks. For poor under-fed laborers, the high sugar content and caffeine is a cheap, quick energy source. In Mexico’s hot climate, cold colas are appealing for their refreshing quality. Two-thirds of Coke sellers in Mexico receive free refrigerators to hold only Coke products” (Ewing). Coca-Cola focused mainly on exploiting Mexican resources because of the abundance of water and sugar cane. They also realized how easily they could manipulate the native people and the low cost of production. Mexico was like a huge profit making center for Coca-Cola. They used marketing campaigns to lure in the naïve indigenous population while trying to integrate with their religion and culture. Coca-Cola had such an impact on the native people that it began to have power above all else including their health and environment. Not only did Coca-Cola worsen the health and environment of the Mexican people, they also drove them into poverty and corrupted the government. Although Coca-Cola was able to sustain a massive amount of profit off of Mexico, its manipulation of the people resulted in a corrupted government which then led to unsuitable health conditions and destruction of their land.

     Coca-Cola has constantly tried to make profit off of Mexico and take advantage of its people by using marketing tactics to lure natives into consuming their product. “High sales are based on a combination of consumption patterns - availability, cost, safety, energy, social prestige, integration with local culture, appeal, and addiction – that are exploited and incorporated into marketing strategies by the Coca-Cola Company” (Ewing). Coca-Cola has promoted their products through specific advertising strategies that promote the growth of these habits. One primary example are the Chamula Indians who not only consume Coke everyday but have integrated it into their religion and culture. “Over the past several decades the caciques—local elites who wield economic and political power and control the soft drink concession—have convinced the faithful that pox should be drunk with Coke or Pepsi, depending on who is doing the proselytizing. They say the cola induces burping, which releases evil from the soul” (Bell). The Chamulas began using Coke in rituals and treated it like a sacred drink of the gods. With the manipulation of the native people, Coca-Cola was able to make profit off of the money these people were willing to spend.

    While having a tight grip on the native people, Coca-Cola managed to exploit Mexican land and its natural resources. “Coke is also widely produced in Mexico, an arrangement that is threatening the country’s water supplies and undercutting indigenous control of natural resources. It takes three cups of water to make one cup of Coke” (Bell). As Coca-Cola is using up Mexico’s water supply to produce Coke, they are limiting water for the native people, forcing them to consume more Coke. Health issues like diabetes and obesity began to worsen as more Coke was consumed because of the sugar and caffeine intake.
    
    Marketing strategy was not the only way Coca Cola controlled Mexico, they also took on a political role. They used caciques, influential political leaders, to gain government control. They served as political bosses who granted services in return for Coke. “A few months before each election, caciques begin providing store owners with all their cola products free of charge. In exchange, each store owner will support his cacique-sponsor’s preferred candidate in the local election, which is invariably a choice between two politicians from the Institutionalized Revolutionary Party (PRI). In turn, the customers of each store get all the cola they want for free, provided they vote for the owner’s candidate. This arrangement helps both the caciques and the PRI to retain their hold on power” (Bell). Coca-Cola corrupted the Mexican government by taking up political positions to aid their own endeavors.

    In Coca-Cola’s pursuit of profit and economic success, they altered the lives of the native people by exploiting their naïve nature and destroying their land. They used their religion to convince the people of the spiritual necessity for Coke. Also with lack of proper authority, the Mexican people were misguided and the Coca-Cola company easily succeeded in gaining control of the government. By doing this, Coca-Cola took advantage of the country’s natural resources and limited the water supply for the people. Without natural resources to provide a healthy diet, the Mexican people resorted to drinking only Coke which caused a rise in diabetes and obesity. Due to Coca-Cola’s economic venture, Mexico must cope with its depleted resources, disintegrating government, and mistreatment of the people. If Coca-Cola continues their profit making schemes, the people of Mexico will have no control over their own government and land. Their water supply will ultimately be destroyed and the health of the people will plummet.


Sources:

Bell, Beverly. "Cola Wars in Mexico." In These Times. 6 Oct. 2006. Web. 7 May 2011. <http://www.inthesetimes.com/article/2840/>.


Ewing, Robin. "Cola Consumption and the Chamula Indians." Robin Ewing. 7 Dec. 2004. Web. 07 May 2011.< http://www.robinewing.com/Chamula.htm>.



~Jenna Anne Chan











 

The Exploitation of Mexico's Water Resources, People, and Government

International commercial corporations have incredible amounts of power to influence people worldwide, both culturally and financially. Although the effects of their presence vary depending on the country or region, they are usually harmful. The Coca Cola Company is one business that has taken the size of their bottom line to the extreme. Since its establishment in Mexico, the Coca Cola Company has abused its monopolistic power and exploited the Mexican people and Mexico’s natural resources.  The detrimental effects that Coca Cola has yielded upon Mexico has, over the past two decades, established a national health problem and crippled soft drink competitors, as well as cheated the Mexican government and Coca Cola employees out of millions of tax dollars.  

Due to the fact that potable water is limited in Mexico, it has always been difficult to supply every citizen with water. This issue has been exacerbated by Coca Cola’s greed as it privatizes as many water sources as possible by pressuring Mexico to manipulate its zoning laws (The Alternative Report). It takes at least two liters of water to produce one liter of soda. Since Coca Cola has reduced the abundance of water sources, there is an even greater need than ever before, with twelve million people [about eleven percent of the population] without access to drinkable water (The Alternative Report). “The impact that Coca-Cola has had on the water supply in Mexico, and more specifically in Chiapas, is astounding, and has created a crisis that shows no sign of improving” (Wooters). It is obvious that many Mexicans have resorted to one of the only sources of clean drinking water: soft drinks. Unfortunately, many Mexicans are unaware of how unhealthy, even dangerous, it can be to regularly drink large amounts of soda. As an example of how influential Coca Cola is that “struggling people, unaware of the ill effects of the soft drinks, will sell the healthy things that they grow on the land, like corn, beans and eggs from chickens to buy cola, which they eventually become addicted to” (Coke's Crimes). This resource monopolization simultaneously creates a scarce water supply and a conveniently abundant Coke supply. It is estimated that one in ten Mexicans have developed chronic health problems such as obesity, diabetes, or high blood pressure from excess consumption of products such as Coca Cola, which contains high fructose corn syrup. Problems such as these are not easily remedied and will negatively influence the health of the Mexican people for decades to come.   

            Coca Cola has not only been a hindrance to the health of Mexican citizens, but also financially impacted the government and their own employees. Mexico has a law stating that corporations must distribute ten percent of their profits among their employees. In order to avoid distributing millions of dollars in profits to their Mexican workers, Coca Cola found a more lucrative solution:

The Coca-Cola Export Corporation created a new company in 1986. This new company, a wholly owned subsidiary of The Coca-Cola Export Corporation was named Integrated Services Management and Senior Management (SIAAGSA). The Coca-Cola Export Corporation then fired all its employees in Mexico and hired them back immediately into SIAAGSA. SIAAGSA will always show little to no profit. (Coke's Crimes)

Absurd and callous actions such as these have seriously hindered Mexico’s economy. The millions of tax dollars and profit percentages that Coca Cola has withheld from the Mexican government and Coca Cola employees through the past twenty-five years would have given Mexico the boost it had needed to recover from the severe recession in the 1980s. Additionally, such funds would have made it possible for the Mexican government to establish more civil services and citizen benefits. The loss of tax revenue and some citizens has negatively impacted Mexico’s economy to the point where monopoly powers such as Coca Cola are more powerful than the government in some areas. If Coca Cola continues to gain power and influence over Mexico's government in order to cheat the people out of their money, the company will financially ruin Mexico in the near future.

           

            Aside from diminishing Mexico’s revenue, Coca Cola also undermines weaker competitors. This corporation is unjustly monopolizing the market by preventing independent and small chain soft drink producers from making a profit. When a small soft drink chain named Big Cola began stocking local stores with their products in 2002, Coca Cola reacted aggressively. “Coca-Cola decided to kill off this upstart business by unleashing an aggressive and illegal marketing effort - providing incentives for shop owners to remove competing brands and threatening to punish them if they didn't” (Coke's Crimes). This type of explicit abuse is deplorable because it discourages small businesses and promotes monopolies such as Coca Cola. Marketing is a necessary aspect of business, but ensuring sales by removing other brands in thousands of stores throughout Mexico is plainly illegitimate. Coke's sales force would order shop owners to remove Big Cola or else lose all promotional gifts and offers and eventually lose their coolers and be cut off from renewing supplies of Coke” (Coke's Crimes). Coca Cola is a huge, monopolistic monster that undermines the business endeavors of competitors by illegal means. It will stop at nothing to reach its goal of making the largest profit possible. This indicates that entrepreneurs and small bussiness owners must either side with Coca Cola or be financially ruined. The Coca Cola monopoly will destroy anyone who stands in its way and that will eventually be Mexico altogether.

            The Coca Cola Company has ruthlessly exploited the Mexican land and people for more than two decades. By taking advantage of Mexico’s limited water supplies and scheming to prevent their precious profits from being distributed fairly among their hardworking employees, Coca Cola is destroying a nation’s natural resources and its economy. Although it is impossible to determine how severely Coca Cola has negatively impacted Mexico through its selfish exploitation, it is clear that this company cares only about their overall profit and not about its detrimental impact in countries with weak economies and governments, such as Mexico. Despite the severity of these issues, it appears that Coca Cola will continue taking advantage of the Mexican people, who will suffer from these health and economic effects for many decades to come. Unfortunately, by the time the Mexican people realize how detrimental Coca Cola is for them, for their health and economy, the company will have done permanent damage. Unless the Coca Cola monster is tamed immediately, Mexico will experience a long downward spiral, and at the bottom will be the end of Mexico and Coca Cola will continue monopolizing other countries across the globe.  

"Coca-Cola: The Alternative Report." War on Want. N.p., 30 Nov. 2005. Web. 5 May 2011. <www.waronwant.org/attachments/Coca-Cola%20-%20The%20Alternative%20Report.pdf>.

"Coke's Crimes in Mexico." Killer Coke. N.p., n.d. Web. 5 May 2011. <killercoke.org/crimes_mexico.php>

Wooters, Monica. "Coca-Cola and Water Resources in Chipas." CASA. N.p., n.d. Web. 4 May 2011. <www.casacollective.org/story/newsletter/coca-cola-and-water-resources-chiapas >.

Liz Newton

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