U.S. beverages face a potential market downturn in TN as the Hotel Owners Association advocates for a consumer boycott
In a significant move aimed at promoting Indian alternatives, the Tamil Nadu Hotel Owners Association has announced a State-wide boycott of US beverages. The boycott, set to commence on September 25, 2025, is a response to the Trump administration's 50% tariffs on Indian goods.
The decision was announced in a letter published on September 5, 2025, by the Consumer Products and Distributors Association. The letter was addressed to the Hotel Owners Association and expressed concerns about the financial risk the boycott imposes on the investments made by traders for conducting business for these brands.
However, the Tamil Nadu Consumer Products and Distributors Association has made an appeal to reconsider and postpone any action against American beverage companies. The Association fears that such an action will put at risk the livelihood of Indian traders and distributors.
The boycott is not a direct attack on US companies but rather a stand against the tariffs imposed by the Trump administration. According to the President of the Association, Venkata Subbu, these Indian alternatives are healthier and of better quality.
The boycott is initially aimed at the Association's 1 lakh members across the State. After the initial State-wide boycott, the Association plans to expand the boycott to a national level.
A major restaurant chain in Tamil Nadu, part of the Association, has not received the boycott notice but will abide by any calls. The working committee of the Tamil Nadu Hotel Owners Association will meet within the next 15 days to discuss the implementation of the boycott.
Interestingly, the boycott comes at a time when Indian brands such as Campa Cola and Bovonto have seen increased adoption among consumers in the soft drink segment. Subbu, the President of the Association, wants the boycott to encourage Indian restaurants to serve Indian beverages and drinks long-term.
The boycott is not intended to be a permanent measure but rather a protest against the tariffs. It is driven by national interest and patriotism. TE Raja Simhan, the source of the information, reports that the boycott is not a direct attack on US companies but a stand against the tariffs imposed by the Trump administration.
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