Kurkure, Dew, Coke, Kinley enter 1,000 crore club

The cola wars , fought for a larger share of the consumers' wallet , have yielded rich dividends for PepsiCo and Coca-Cola this year as both the companies added two brands each to the prestigious thousand crore club.

By Samidha Sharma, TNN | Updated: Nov 19, 2011, 10.32 AM IST

MUMBAI: The cola wars , fought for a larger share of the consumers’ wallet , have yielded rich dividends for PepsiCo and Coca-Cola this year as both the companies added two brands each to the prestigious thousand crore club. These brands individually clock retail sales of Rs 1,000 crore or more .

While PepsiCo India ,the Indian arm of the $60 billion American snack-food and beverage giant , added Mountain Dew and homegrown snack brand Kurkure , Coca-Cola India added Kinley and its most iconic offering brand Coke to its list of fiveexisting thousand crorebrandsthis year .

From the PepsiCo stable , the brands which already ring in sales of more than Rs 1,000 crore are Pepsi Cola , 7Up , Mirinda , Slice and Lay’s . What is significant is that for the first time an indigenous brand —Kurkure —has achieved this milestone. For its arch-rival Coca-Cola , the existing brands which garner sales of Rs 1,000 crore or more include Maaza , Thums Up, Sprite, Fanta and Limca .

“This year , seven of our brands will cross the Rs 1,000 crore sales mark . We expect a couple of more brands to join this club shortly ,” Manu Anand , chairman and CEO of PepsiCo India , told TOI. The citrus-flavoured soft drink brand, Mountain Dew, has been growing at about 40% annually—double of what the other beverage brands have clocked for Pepsico India-—while the homegrown snack brand , Kurkure’s success has led to the salty snack being adapted in the West with different favours .

Other India focussed-product innovations from PepsiCo have been healthy snack brand — Aliva and the non-carbonated lemon juice—Nimbooz . Globally , the Purchase ,NewYork-based PepsiCo has $19 billion brands across 200 countries

PepsiCo’s India-born chief Indra Nooyi has been pushing products on the health and wellness plank but its core brand equity in India is still centered around the carbonated soft-drinks category , although , with the inclusion of Kurkure , food brands are making their presencein thisexclusive club. Internationally , PepsiCo’s “good for you” products stillonly accountfor about 20% of itsoverall revenue .

A Coca-Cola spokesman said : “Whilewebelievethebest measure of recognition is brand love and preference , it is worth noting thatseven brands from our sparkling and still portfolio are worth more than Rs1,000crorein retailsales .”

“Our salescrossing Rs1,000 crorefor a brandin onecountry is a significant development as it conveys the brand has reached a certain scale and equity . Owing to strong market share , equity and scale , these brands engage with consumers at a different level all together and hence we are able to invest more in marketing initiatives and innovation .

They also present an opportunity for brand extensions and give confidence to the business to explore new categories and segments ,” PepsiCo’s Anand added . PepsiCo , thesecondlargestfood andbeverage corporation in the world , has brands like Pepsi-Cola , Mountain Dew, Lay’s , Gatorade , Tropicana , 7Up , Doritos , Lipton Teas , Quaker Foods, Cheetos, Mirinda , Ruffles, Aquafina , Pepsi Max , Tostitos, Sierra Mist, Fritos , and Walker’s with annual sales exceeding $1billion .

“Numbers areimportantin every category especially in the food andbeveragespace asitindicates how relevant the brand is in terms of depth of consumption . This also gives brands the opportunity to needle competition ,” said Harish Bijoor of Harish Bijoor Consults , a branding advisory firm . India is a top five market for PepsiCooutsideof theUS in termsof volume .

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