Both Coca-Cola and Pepsi Cola operate in different markets. As such, they must adhere to the legislation of the different jurisdictions. Increase in the minimum wage may have a significant impact on the operations of the companies. Coca-Cola has faced various legal issues in the past. In the 1970s, Coca-Cola refused to provide Indian regulators with its formula. This forced the company to stop selling its product in India for 16 years. Various EU member countries also banned the selling of Coca-Cola due to the poisoning of more than 90 children in Belgium. The children were poisoned due to the use of wrong carbon dioxide in Coca-Cola. The carbon dioxide contained toxins such as lindane and malathion, which led to breakdown of the immune system of the children. Poisoning due to intake of Coca-Cola in India also led to the ban of Coca-Cola and other soft drinks.
The U.S. has also banned the selling of Coca-Cola in schools due to health concerns. In fact, increasing health awareness has led to a reduction in the sale of Coca-Cola and Pepsi Cola. It has led to the increase in the sale of conventional soft drinks such as tea. Pepsi Cola also operates in a highly structured legal environment. This necessitates the company to ensure that its operations do not violate the laws of the markets it operates in. The company has previously been banned in various regions due to violation of environmental laws of the country. Both Coca-Cola and Pepsi Cola must ensure that they fulfill various legal requirements prior to setting up their operations in various parts of the globe. Fulfilling the legal requirements is usually a lengthy process, which may take weeks in some countries (Smith, 2010).
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