NEW DELHI: Executives at Pepsi-Co’s headquarters and its Asia-Pacific office are said to have conveyed their concern over the Indian unit’s decision to take legal action against Gujarat farmers for growing a variety of potato following social media hostility and calls for a boycott of the company’s products.
“Headquarters has asked PepsiCo India to resolve the issue at the earliest and work as a team,” said one of two senior executives aware of developments. “They are concerned about thelegal issue and the backlash.” The Apac office is in Dubai.
PepsiCo has sued nine farmers in Gujarat for alleged “rights infringement” on the grounds that they “illegally” grew its registered FC5 potato variety used to make Lays chips.
TO MAKE DECISIONS: PEPSICO INDIA
A PepsiCo India spokesperson said the local unit is free to make its own decisions.
“The local team at PepsiCo India is fully empowered to ‘act as owners’ and equipped to take decisions based on local market conditions,” the spokesperson said. “Beyond this, there is nothing more to add
