Coke tanks up juices portfolio to take on PepsiCo

Mumbai: The cola battles are now spilling over to the juices category with more Indians opting for healthier drinks. Just a few months after Pepsi-Co launched a powdered version of its juice brand Tropicana , Coca-Cola is broadening its Minute Maid 100% juice portfolio by introducing a new flavour in Guava and strengthening its retail and distribution push in order to take on the well-entrenched players in the packaged juice market.


Coca-Cola entered the pure juices market dominated by arch-rival PepsiCo’s Tropicana and Dabur’s Real two years ago but has not been able to dent the their market shares. The Atlanta-based beverage major is now looking to rev up its non-carbonated portfolio in its push to provide offerings all year round to consumers and not have its sales skewed to the summer season , traditionally the peak time for cola companies.

The world’s biggest beverage maker also sells the mango juice-based drink Maaza along with the fruit-based Minute Maid Pulpy Orange and Nimbu Fresh in the Indian market. The Rs 5,000-crore Indian non-carbonated beverage market comprises pure juices and fruit based drinks. According to market research firm Nielsen, the overall juice category clocked a growth of 23% in April 2012 to March 2013. Of this, the premium range, which is 100% juice, is estimated at Rs 1,500 crore.

“The two main factors that are driving a double-digit growth for the juices category are health and convenience. Consumers also have a preference for branded packaged juices as they believe these are safe choices.

While modern trade continues to be the destination choice for the shoppers of this category driven by assortment and availability, the traditional trade continues to catch up and grow faster. Middle India has grown one-and-ahalf times over the last 12-month period, compared to metros,” said Vijay Udasi, executive director, Nielsen India.

According to industry estimates , in the juice segment which includes fruit-based drinks as well, Coca-Cola’s Maaza has around 37% share while Pepsico’s Slice has 22% with Parle Agro’s Frooti at 15%.

Guava flavour is growing around 30% y-o-y , said Neeraj Garg, VP, juice business at Coca-Cola India. “There is so much opportunity in the packaged juice space that we continuously want to offer more choices to the consumer, both in terms of flavours and packages.”