“Be quick, but don’t hurry.” This phrase embodies the brand name- Double Seven. Not only did it find its genesis in the crisis, but it also gave India a brand to call its own.
This phrase fits the case of Double Seven, whose birth was a repercussion of the exit of Coca-Cola.
It was in the year 1977 when the then Janta government headed by the first non-Congress PM Morarji Desai compelled strict adherence to the provisions of the 1973 Foreign Exchange Regulation Act (FERA), which obliges foreign companies to comply with the reduction of the ownership stake of its India operation.
These provisions said:
(1) Foreign companies engaged in low-priority, low-technology industries have to transfer 60 percent of the equity shares to Indians; and
(2) also fully transfer technical know-how to the Indian company within a fixed time limit.
The Reserve Bank of India issued orders under FERA, asking Coca-Cola Export Corporation (CCEC), the Indian arm of the U.S. company, to comply with these two provisions. The International Cola company, however, conceded to diluting its 60 percent stake but was against passing their formula for its concentration in the hands of Indian shareholders. Therefore, in the wake of such events, the international brand packed and left the country, leaving behind its employees in the lurch.
During this time, the idea of introducing an Indigenous Cola brand germinated in the minds of leaders. The Janta government under Morarji Desai thought of making reparations to unfortunate workers by way of opening a new venture under the name of Double Seven.
They seized the opportunity to give the country its own “cola” brand to fill the void created by Coca-Cola after drumming out of the country. The Indians who were bereft of the taste of Coca-Cola, which the drink set on their tongues, could taste the elixir of aatma-nirbharta ( self-dependency).
Perhaps these attributes answer why many dubbed it as ‘Sarkari cola’ or ‘satattar.
The makers of Modern Breads, Modern Food Industries, a government-owned company, were manufacturing and marketing the drink, while developing the concentration formula for the drink was a work of another government-run institution – Central Food and Technological Research Institute (CFTRI), Karnataka, Mysore.
George Fernandes, then minister for industries, hammered out a plan to introduce a local cola brand, in anticipation that Indians would buy this drink, thus, giving employment to the workless Coca-Cola employees.
On 13 November 1977, the government set out to promote Double Seven. Double Seven bet on having similar taste, color, and fizz as that of Coca-Cola lovers disagreed.
Demise of Double Seven:
Although the government attempted to create a space for an indigenous cola drink, the market had other brands like Campa Cola, Thums Up, and Duke, which posed tough competition to the Double Seven.
The poor imitation of Coca-Cola additionally could not assuage the venture, which was bleeding losses.
The woes of the venture were aggravated by the comeback of the Indira government in 1980. Why would the Indira government favor the perennial operations of a venture that was not only cash-strapped but also a reminder of the scars of the 1977 election results?
“Her government, while not against the brand, did not favor it like Desai’s government. The brand died a natural death after it failed to impress the audience and collect money for its sustenance,” Santosh Sood said, former chief operating officer of brand and ad agency Rediffusion Y&R, as quoted in several media.
In 1993, Coca-Cola re-entered the Indian market and has set foot firmly for decades.