Good Morning.

My name is Gigi Kellett and I am with Corporate Accountability International. I am pleased to present this proposal on behalf of our member Allie Perry and our ally NorthStar Asset Management, filers of this resolution.

At last year’s annual meeting, Mr. Isdell explained to those of us gathered that one of the main reasons consumers choose Dasani bottled water is for the security it affords. Mr. Isdell’s words and much of Coke’s advertising deliver subtle and not-so-subtle messages that Coke’s bottled water is better and safer than tap water.

This resolution simply says: “prove it.”

The proposal asks Coke to disclose composite biological and chemical testing data on its bottled water and other beverage products. The Environmental Protection Agency requires that every municipal water utility publish such a report annually and mail it to every home that gets its water from municipal sources. The report is simple and highlights the procedures used to assure that water is safe, discusses any problems encountered during the year and steps taken to address those problems and keep them from happening again.

The EPA commissioned a Gallup Poll to see what consumers thought about these water reports. The poll found that nearly one-third of all Americans reported reading these reports and more than 80% said they found the reports useful. Coke’s competitor, Nestlé already publishes reports detailing testing for dozens of chemical and biological compounds in its bottled water brands.

In the response to this proposal, Coke’s board said this information isn’t necessary, the company’s quality processes are enough. But those quality systems failed three times in the last four years. Last fall, for the second time in three years, Coke products were found to contain pesticides. And in 2004, just weeks after the launch of Dasani in the United Kingdom, half a million bottles were recalled because they were contaminated with cancer-causing bromate.
 
Coke says this proposal isn’t necessary because its products are regulated by the Food & Drug Administration. This is the same FDA that last summer failed to recall bromate contaminated bottled waters sold throughout the Mid-Atlantic states. The contamination of that water was identified by a consumer and reported to Wegman’s, a regional grocer. Wegman’s notified the FDA and withdrew the product from its shelves. Over the next six weeks, several additional stores pulled the product. The FDA never did order a recall.
 
Even if the FDA were to take action, they only have authority to act when beverages cross state lines. At least sixty percent of bottled water is consumed in the state in which it is bottled, meaning there is no FDA jurisdiction.

Coke also points to the fact that it uses EPA regulated tap water as the basic feedstock of virtually all of its US beverages. Presumably that means that consumers could look at the EPA reports of water quality that I described earlier. They could, if Coke’s product identified which plant bottled the product in your hands – as both Pepsi and Nestlé’s beverage products do.

As we’ve discussed with your representatives, when it comes to product safety it is not enough to simply say “trust us.” Contamination has cost untold dollars in lost sales.

Supreme Court Justice Louis Brandeis once said, “Sunlight is the best disinfectant,” explaining how transparent and open government was the best way to protect democracy. Product safety and quality data should not be part of Coca-Cola’s coveted secret formula. Publishing the data creates another level of accountability that will both protect customers’ health as well as shareholder investment.

I hope you agree and will join me in supporting Item 6 on the proxy card.

Thank you.

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