In our “Next 50 Years” booklet, we talk about the challenges associated with Globalization and the growing power of NGOs. The recent events in India have made these points painfully obvious for Coke and Pepsi.

It is hard to imagine two more global brands. Both companies’ logos are ubiquitous in almost every country in the world. But now in one of the world’s largest consumer markets, their primary products are on the verge of being banned. How could that happen? How could they let it happen?

It all began when an independent NGO, called the Centre for Science and the Environment, issued a report stating that both soft drinks contained harmful levels of pesticides. Following the report, the state of Kerala banned their sale. As the news spread, other states initiated similar restrictions until the ban reached quarter of India’s states. The bans have received widespread coverage accompanied photos Indian consumers tearing down Coke and Pepsi signs.

I will leave the analysis of what the companies did right and wrong to others but it should suffice to say that neither one was prepared for the speed and severity of the reaction to this activist group’s report. From newspaper accounts, it appears that their respective PR departments employed the same tactics for dealing with the issue that they would have used in Western countries with well crafted statements and independent tests. But in this case they didn’t work.

India is quickly becoming a modern democracy like the US, but the mindset of its people could not be more different. Western companies must understand these critical cultural differences if they are going to avoid problems like this in the future. Consumers across the globe are wielding more power than ever before, and consumer brands cannot afford to underestimate their impact on the marketplace no matter where they live.