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Benzene Suit Against PepsiCo to Proceed in Kansas Courts (DJ)

Source: Dow Jones Newswires
30/05/2007

New York, May 29 - A lawsuit that alleges soft-drink manufacturers, including PepsiCo Inc., are selling drinks made with ingredients that can form cancer-causing benzene can go move forward, a Kansas federal court has ruled.

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The suit is one of five lawsuits filed in various states. Plaintiffs are asking soft-drink makers to remove the drinks from store shelves, reformulate their products, and offer refunds to consumers who bought them.

Benzene can form in soft drinks containing vitamin C, also called ascorbic acid, and either sodium benzoate or potassium benzoate. Scientists say factors such as heat or light exposure can trigger a reaction that forms benzene in the beverages.

The ruling late Thursday by U.S. District Judge Kathryn H. Vratil denied a motion to dismiss filed by the defendants in the case, which include PepsiCo Inc. and privately-held Sunny Delight Beverages Co. and Rockstar Inc.

"We're now going to see how well the defendant companies hold up when their case is exposed to heat and light," said Gregory M. Garvin, an attorney for the plaintiffs with the Kansas City law firm Sader & Garvin LLC.

The plaintiffs said Diet Wild Cherry Pepsi has benzene levels nearly four times the maximum level of 5 parts per billion set by the Environmental Protection Agency for benzene in drinking water.

But Pepsi Cola North America spokesman Dave DeCecco said the FDA has reviewed its products and found no reason for concern about benzene levels.

"We believe this suit is entirely without merit and we will continue to defend ourselves," DeCecco said.

He added that Diet Wild Cherry Pepsi was reformulated last fall.

Coca-Cola Co. (KO), a former defendant in the case, settled with the plaintiffs earlier this month and offered replacement drinks to anyone who purchased Fanta Pineapple or Vault Zero before September 2006. The company also volunteered to reformulate the drinks.

PepsiCo shares fell 26 cents to $68.56 in afternoon trading.



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