Coca-Cola supplier pays settlement after inflicting unthinkable hardship on hundreds of families: 'This was a long road to justice'

Nearly two decades after hundreds of Cambodian families were forced off their land by a Thai sugar giant, they're finally getting justice with a long-overdue settlement. But during that time, the families endured cruel conditions and the pain of leaving their livelihoods behind. 

What happened?

Inclusive Development International reported that more than 700 families who were displaced filed a class action lawsuit against Thai sugar giant Mitr Phol Sugar in 2018 over alleged land grabbing, but the battle has been ongoing since at least 2008. That year, the company drove villagers off their ancestral land, sometimes using violence, to clear fields for a plantation.

The lawsuit sought compensation and remediation for the land grabbing and displacement, and in 2020, a Thai civil court granted class action status to the families involved in the case, per the Business and Human Rights Resource Centre.

The suit was finally settled in February, with Mitr Phol agreeing to a substantial, though undisclosed, settlement to help the families rebuild their lives. The case was the first transboundary human rights litigation of its kind in Southeast Asia.

"This was a long road to justice," David Pred, Inclusive Development executive director, said in a statement. "Community leaders from Oddar Meanchey kept up this fight for nearly two decades, in the face of an enormous power imbalance."

"By taking the case to the Thai courts and effectively engaging with the big brands that source sugar from Mitr Phol, they were able to shift that balance of power and negotiate a remedy that they were satisfied with," he added.

Why does the lawsuit against Mitr Phol matter?

Mitr Phol supplies sugar to major global brands such as Coca-Cola, Mars, and Nestlé, the first of which has come under fire for other issues, including connections to horrifying worker exploitation on Indian sugar cane farms, misleading advertising, and disturbing conditions at dairy farms, which supply Coca-Cola's Fairlife brand.

Given the negative news surrounding Coke, the lawsuit could affect brand loyalty, though the sugar supplier has at least agreed to compensation.

But in the nearly 20 years it took to reach a settlement, many families migrated to Thailand to start over — without the comforts and support of home in the unfamiliar location.

Hoy Mai, a community leader and lead plaintiff in the case, told Inclusive Development that she was forced to walk nearly 200 miles while pregnant to beg the prime minister for support. Instead of getting help, however, she was arrested and delivered her baby in prison.

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Many times, citizens suffer for the choices of multinational companies, though it's important to note that brands don't always know what's going on behind the scenes at their suppliers' facilities.

In this case, the class action lawsuit shows global companies that they're being held to a higher standard and that consumers, investors, and regulators are putting more pressure on them to adopt sustainable, ethical practices.

It's a win-win for customers and companies because when people support businesses that put people over profits, it proves that corporations can still make money without sacrificing morals. 

What can you do to support socially responsible companies?

While transnational companies have been increasingly called out for unethical practices, they're also taking steps to change their tune.

For instance, Coca-Cola replaced its plastic rings with paper packaging at a Philadelphia-based bottler, which will eliminate 75,000 pounds of plastic use each year. It's part of its larger goal to boost recycling and sustainability and massively reduce plastic pollution.

Shopping with companies that use plastic-free packaging and learning more about greenwashing are positive steps that can help you feel good about your purchases and support brands that align with your values.

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