Date: Fri, 20 Aug 2004 17:56:33 -0500 From: CIEPAC <ciepac-AT-laneta.apc.org> Subject: AUT: [Ciepac-i] English Chiapas al Dia 385 I “Chiapas Today” Bulletin No. 385 CIEPAC; CHIAPAS, MÉXICO November 6, 2003 COCA-COLA THE DIRTY HISTORY OF THE DIRTY WATERS (Fourth Part) In the decade of the eighties, neoliberal measures were strengthened. Among them the extensive wave of privatizations and the banquet of trasnational companies, like vultures, watching over the governments to buy all of the companies, resources and goods. The concept of privatization was gradually increased in the decades that followed. It came to include water, biodiversity and other natural resources. But it also included other comparative advantages for the benefit of transnational corporations: the reduction of labour rights such as the adjustment policies. Nicely called, “competitive labour”, “labour reform”, etc., the rights of workers were decreased in order to fatten the profits of big businesses. Unions became an enemy to be conquered. The Coca-Cola Company even allied itself with armies and the paramilitary groups of Colombia. Owing to the murdered union members and the thousands and thousands of laid-off workers around the world, an impressive world reaction against Coca-Cola – the product distributed in more countries in the world than any other product – took shape. There have only been a few such campaigns against transnationals, such as the campaigns against Nestle, Nike and the oil companies. Colombian union members launched a world-wide campaign against Coca-Cola: “We call on you to continue to denounce the human rights violations committed by this transnational and to continue with the plans to strengthen the international boycott against Coca-Cola.” This call and boycott was summarized in the actions carried out against the transnational in Chile, Venezuela, Turkey, India, France, Belgium, Holland, Germany, Italy, Spain, Sweden, Denmark, the Middle East, Iran, Saudi Arabia, Bahrain, Mexico, Guatemala, Morocco, the United Sates, Libya, the United Arab Emirates, Pakistan, Bangladesh and Indonesia among others. The employees of Coca-Cola made a call to “redouble forces lifting our arms in victory with the workers, the consumers and the social and political organizations. We are beginning to reap the fruits from distinct communities around the world that we sowed through the “Campaign Against Impunity and Colombia’s Call for Justice” and the three sessions of the Popular Public Audience, the boycott which they have been advancing for some time now (…) We, the communities of these countries have decided to not consume any more Coca-Cola in condemnation of its policy of violence and to avoid giving money to the war against Iraq promoted by George Bush and to protest the support given by the American government to Ariel Sharon’s genocide.” (Bogota, Colombia, August 6th, 2003). In the United States the “Stop Killer Coke” campaign strengthened, uniting activists and students from more than twenty universities and education centers: Bard; Bowdoin College; Mt. Holyoke College; Coirdozo Law School; and the universities of: Georgetown, Chicago, Hofstra, Illinois and Illinois State, Loyola, St. Louis, California, Massachusetts, Montana, Wisconsin (Madison and Milwaukee), and Western Virginia among others. And you? When are you going to join in? Do you want to know why? Keep reading, this story isn’t a waste. THE DIRTY WATERS ARE STAINED RED In the decade of the 80s, the Coca-Cola Company was involved in serious human rights violations. It’s links with governments and armed forces are not new but its ties to paramilitary groups and even murder, are. By this time the Cuban, Roberto Goizueta of Basque descent, had arrived in the United States. At 18 years of age he did not speak one word of English but by the time he finished his studies he was a distinguished student of Yale University. In 1980, the year in which he was designated as the new president of the Coca-Cola Company and the first foreigner to take this post, the sixth Coca-Cola-related murder in Guatemala took place, with the death of union member, Pedro Quevedo. Four of his peers were also murdered in this same year. The International Union for Food Workers (IUF) denounced the death of the Coca-Cola union worker provoking protests in many countries. This event would be one of the foundations of the future boycott campaigns against the company. In 1982 the “Coke is it” campaign was launched into the market, a slogan with which the company tried to recoup its image. To this end, 2000 Coca-Cola bottlers from around the world came together in the center of Atlanta to see the premiere of the advertisement on the most important television links. But in this same year the National Union for Food Workers was born in Colombia (SINALTRAINAL), it would be the main enemy of the Coca-Cola company which would even get to the point of complicity with the Colombian army and paramilitary groups and the murder of union leaders who fought for labour justice. The company reinforced its publicity campaign to create more soda consumers. In this same year, demolition of the old company building in the United States began and by way of gifts, the bricks were divided among the employees in memory of the good times. The company continued its ambitious expansion. In 1983 Coca-Cola acquired Columbia Studios for $750 million (U.S.), almost double the value of its shares in the market. With this it obtained great successes with movies such as Tootsie, Gandhi, The Toy, Murphy’s Romance and Ghostbusters. Coca-Cola also made available its new toll-free international telephone line to consumers throughout the world. It contracted Spanish singer, Julio Iglesias, to seduce the female public, foreign consumers and the almost 30 million Spanish-speaking people living in the United States. With the Los Angeles Olympic Games it attempted to recoup its losses from the previous Olympics in Moscow, for which it had paid millions of dollars for exclusive rights but which the governments of the United States and other countries boycotted, hence, not attending those Olympics. But Pepsi-Cola was advancing on the market. The cost of not having bought it out in the past three offers would become the historic expense for Coca-Cola. Roberto Goizueta decided to change the formula for Coca-Cola and he mentioned this in private to Robert Woodruff, “the Boss”, who had been the third owner of the company and who then was 95 years old, almost deaf and blind and on the brink of dying. He said that, “the Boss” agreed. In this same year, in 1985, one of America’s most symbolic businessmen, died, before the launching of the NEW COKE. Robert Woodruff would never know of the uproar caused by the “attempt” to change the flavour of Coca-Cola and that it would be at a cost of $4 million. Over the next three months the company received hundreds of thousands of calls through its 1-800-telephone lines and hundreds of thousands of letters in which consumers demanded a return to the original formula. It had tried to change a national symbol for a new fashion without taking into account the Coca-Cola fanatics who had as their banners God, Country and Coca-Cola. The display of publicity to promote the new flavour was glorious. However, the public didn’t like it. In Mexico, Goizueta’s father had received threats and hence he begged his son to return Coca-Cola to its original flavour. Meanwhile, in Havana, Fidel Castro declared that, “the disappearance of the genuine product was a symptom of America’s decline.” So great was consumer reaction that Coca-Cola decided to return to its original formula. ABC television interrupted its regular programming to announce the news and the next day it was the leading story in all the American newspapers. Curiously, on the same day, American president, Ronald Reagan, who was closely linked to the interests of Coca-Cola, had an operation for cancer, something that was “second story” news. We arrive at 1986 when the company celebrated its first 100 years. Having begun with less than 30 employees it then had almost one million people working for it throughout the world. In this anniversary year, a worker for the Nestle company and SINALTRAINAL union member in Colombia (the union to which thousands of workers affiliated with and employees of Coca-Cola belonged, several of whom, a few years later would themselves be assassinated), Hector Daniel Useche Beron, was murdered. For Coca-Cola’s anniversary, 12 500 bottling plant representatives from around the world met in Atlanta. The party cost the company $23 million (U.S.). In this year, Columbia Pictures, owned by Coca-Cola produced various films, among them: Perfect, Crossroads, Fast Forward and Ishtar, with Dustin Hoffman and Warren Beatty. Also this anniversary year it was calculated that in the United States more Coca-Cola was being consumed than any other liquid including running water. Given this, Pepsi didn’t want to be left behind. The “Cola Wars” aimed at attracting more customers, worsened. Pepsi-Cola attracted public figures such as Madonna and Michael Jackson for its promotional videos. Coca-Cola bought the services of Whitney Houston, George Michael, Sting and Cyndi Lauper and it maintained its physical presence at more than 400 large public spaces ranging from football stadiums to Disneyland. In 1988 Coca-Cola reached, for the first time, $1 000 000 000 (one billion U.S.D.) in profits. And, even though sales in the United States were relatively equal between the two companies, the international limits of Coca-Cola gave it a 4 to 1 advantage over Pepsi-Cola. In this year, half of all non-alcoholic drinks consumed in the world were Coca-Cola. For example, with almost 200 million inhabitants, Indonesia was one of Coca-Cola’s preferred countries owing to its large consumption. But, the European Community only contributed 29% of the profits with an average consumption of 81 bottles per year per person (in France, only 31 bottles per year were consumed per person) and even this was due to the attempt to infiltrate European life and culture with EuroDisney and the Olympic Games in Barcelona, which could be called the Olympic Games of Coca-Cola. In Japan things weren’t going well either as the company saw its profits decrease. The economic policies of the United States were provoking a reaction against the American Empire. Despite the more than 2 million vending machines, the Japanese thought that it was a drink just for youth. Coca-Cola launched a big campaign, going around the country with a large truck, the Mobotron, equipped with a 5-meter high video monitor. But the Japanese didn’t swallow it. Then Coca-Cola sold Columbia Pictures to Sony for $3.4 billion (it had bought it for 750 million). Gringo society and business reacted unfavourably to seeing a national cinematic symbol pass into Japanese hands. At any rate, if the billion dollars in profit obtained by Coca-Cola in that year were distributed today to the poor of the world, who, according to the World Bank earn two dollars a day, there would be enough to give to 500 million people throughout the world. In 1989 the first Colombian union member of the Coca-Cola Company was assassinated, Avelino Chicanoy and the movements and reactions against the company reignited. In this year, Coca-Cola created another large-scale publicity stunt. Remember the famous commercial filmed in Italy where the company brought together 200 youth from around the world in 1971? Well now it decided to reunite these same people along with the children on top of the same hill. And even though they only found 25 of them, that doesn’t matter. In five days it filmed the commercial that once again would generate a publicity impact on the world front and in a very spectacular manner. All in all, Coca-Cola ended the decade of the eighties with enormous profits and its shares revalued at almost 735%, generating a $30 billion (U.S.) benefit for its shareholders. Its influence and power invaded everywhere. Its opportunism has no limits. In 1989 when the Berlin wall fell, the company gave away thousands of Coca-Colas as the citizens of East Berlin crossed the border. Nearby, in Moscow’s Red Square, Coca-Cola was already inserting itself into Russian life and culture along with the McDonald’s hamburger chain. In Ushuala, the southern-most city in the world, people were already consuming an average of 420 drinks a year per person (about one per day). And you? How many Coca-Colas do you drink each day? The world-wide presence of Coca-Cola was already legendary in 1991. In this year, the editorial of the New York Times declared: “You can distance yourself but you won’t be able to turn your eyes away. Sooner or later no matter how far you have ventured from commodities and the advantages of the modern world, you will find Coca-Cola. Even if you are on the summit of the Himalayas, on islands ravaged by hurricanes or even in the cradle of civilization if it pleases you, Coca-Cola will be there, waiting.” In the first years of the nineties, 3 456 000 000 (three billion four hundred and fifty-six million) Coca-Colas were consumed in the world. Mexico was one of the main world consumers of the soda and in the country, the state of Chiapas and rural communities were particularly notable. This is what we, the consumers, have built over so many decades. At the beginning of the 90s, the company’s publicity expenses were $4 billion (U.S.). The salary of Coca-Cola’s president, including shares in the company and some other additional benefits was $86 million (U.S.); while the vice-president in 1991 earned $38 million (U.S.). Between the two officials, their income was $340 000 (U.S.) daily. What these two men earned is, today, equivalent to the daily income of the 150 000 indigenous of Chiapas. In 1993 Coca-Cola gobbled up its bottlers and it began to buy up the ones that were not under its own domain with the intention of having this major patrimony at its disposal and dominating production, particularly in the South American zones. But the ambitions of Coca-Cola came up against a large obstacle: organized and unionized workers. So, it used pressure, blackmail, extortion, firings, intimidation, torture and even murder mechanisms to try to make the unions disappear. In this way, in 1994, two union leaders in Colombia were murdered. One year later, another was killed. In 1996 another two Coca-Cola union leaders and workers were murdered by paramilitaries in cahoots with the company. This year Coca-Cola was being sold in 205 countries. In 1997 the second Coca-Cola museum was born in Las Vegas, Nevada and the president of Coca-Cola, Roberto Goizueta, died. It is said that in all of Coca-Cola’s history, very few have known the composition of the soda’s secret formula. Logically, John Pemberton, its inventor, Asa Candler, its second owner and later his son the third president; also Woodruff and as well the three or four company chemists – these are the only mortals that have, in reality, known the secrets of ingredient 7X. Roberto Goizueta was also “in the know” as he was also a chemist. In his place, Douglas N. Daft was named president. But the dirty waters once again were dyed red. In 2001 another unionized Coca-Cola worker died. In 2002 another. The blood ran and between 2002 and 2003 another campaign larger than has ever been seen before was launched against Coca-Cola. In parallel, since 1994 with the EZLN’s uprising in Chiapas and the coming into effect of the world’s largest Free Trade Agreement among the United States, Canada and Mexico, the American government began its most ambitious continental economic plan. The Free Trade Area of the Americas (FTAA) is meant to join all of the continent under its economic hegemony and imperial military. At the same time a new planetary economic structure is being attempted: The World Trade Organization (WTO) which tries to impose common commercial rules on the entire world. The new agreements and trade rules go along giving greater power to transnational corporations. In particular, the race for water and in general for supplies and natural resources, the primary materials used by the companies. It is no longer just a war against the workers and labourers but also against the indigenous peoples and the campesinos to snatch the water away from them as well as the sugar market. The failure of the WTO in its fifth Ministerial Meeting carried out in Cancun, Mexico last September put the new American strategy to strengthen its interests with the FTAA and the bilateral free trade agreements on alert. Coca-Cola’s agenda is water. Now we see the company building indigenous schools in Chiapas and giving a hand to the state government. Worse yet is that they do this not in just any place but in the regions that have the most important aquifers. But we’ll talk about this later. For now … YOU WON’T BELIEVE THIS - The largest advertisement for Coca-Cola in the world is found on the “El Hacha” (“the Axe”) hill in Arica, Chile; it measures 122 meters wide and 40 meters high and it is made from 70 000 Coca-Cola bottles. Chile was one of the first countries to privatize its water sources including rivers during its era of military dictatorship. - Coca-Cola is the most famous trademark in the world. It is recognized by 94% of the total world population. In a survey taken in 1997, Coca-Cola was the second most-valued trademark in the world, after McDonald’s but before Disney, Kodak, Sony, Gilette, Mercedes-Benz, Levi’s, Microsoft and Marlboro. - In 1990, The World of Coca-Cola, the official company museum opened. And in its absurdity, the Coca-Cola Collectors Club is born, the first Spanish club for Coca-Cola collectors and in April in Castelldefels, Barcelona, the first public locale in Europe (not official/ private collection) was inaugurated, dedicated exclusively to the world of Coca-Cola. - In 1992 Coca-Cola was the exclusive sponsor of the Barcelona Olympic Games. Its propaganda was everywhere in the city, on chairs, tables, signs and vending machines. All of the athletes who carried the Olympic torch had the Coca-Cola logo on their clothes. - In 1996 Coca-Cola was host to the Atlanta Olympic Games. - In Taiwan the world’s largest inflatable bottle is created measuring 25 meters. - The annual consumption of Coca-Cola in 1989 China, after the Tiananmen Square massacre was one bottle per capita - In Lille, France, on November 27th, 1990, a six-year old child killed his mother with a rifle because she wouldn’t give him a glass of Coca-Cola. - It is said that in the United States there are mothers who give their children milk mixed with Coca-Cola. In rural Mexican communities there are mothers who give their children Coca-Cola to drink in place of milk. Sources: Luis Capilla, “Multinationals, the Voracious Planetary Octopuses”; Coca-Cola Company; Joan Bonet; Tanga Word; CokeWatch; Polaris Institute; Mark Pendergrast, “God, Country and Coca-Cola”; Alison Gregor, “Coca-Cola: The Global Religion”; “Coca Cola, A Business Story of Terror and Crime”, Sinaltrainal/Rebelión, September 3, 2002; The Swiss Support Group, “Colombia Never Again”; Sinaltrainal; Information Bulletin on Trade and Development, No.10, April 2002, Guatemala; Reuters; Luis Ernesto Almario, ANNCOL; Campaign to Stop Killer Coke; Forbes. (Translated by Sherry Telford, for CIEPAC, A.C) Gustavo Castro Soto The Center for Economic and Political Investigations of Community Action, A.C. CIEPAC, CIEPAC is a member of the Movement for Democracy and Life (MDV) of Chiapas, the Mexican Network of Action Against Free Trade (RMALC) www.rmalc.org.mx, Convergence of Movements of the Peoples of the Americas (COMPA ) <http://www.sitiocompa.org>www.sitiocompa.org, Network for Peace in Chiapas, Week for Biological and Cultural Diversity <http://www.laneta.apc.org/biodiversidad>www.laneta.apc.org/biodiversidad, the International Forum "The People Before Globalization", Alternatives to the PPP <http://usuarios.tripod.es/xelaju/xela.htm>http://usuarios.tripod.es/xelaju/xela.htm, and of the Mexican Alliance for Self-Determination (AMAP) that is the Mexican network against the Puebla Panama Plan. CIEPAC is a member of the Board of Directors of the Center for Economic Justice <http://www.econjustice.net/>http://www.econjustice.net and the Ecumenical Program on Central America and the Caribbean (EPICA) http://www.epica.org. 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