PepsiCo now readies distribution mocktail

NEW DELHI: With an increased focus on non-carbonated offerings, PepsiCo India is integrating the distribution for its carbonated soft drinks (CSDs) and non-carbonated offerings like juices, juice drinks and sports drinks. This is aimed at ensuring a wider retail presence for Pepsi brands like Tropicana and Gatorade.

When contacted, PepsiCo executive director Abhiram Seth refused to comment on the development. However, industry sources said that the cola major wants to expand the retail presence of its non-carbonated offerings, which is at present very limited, and aims to leverage its stronger CSD distribution network of about 1.2 million outlets.

Pepsi has juice brand Tropicana, juice drink Slice and sports drink Gatorade in its beverages portfolio, and is aiming to strike a balance between its CSD and non-cola sales. Currently, Pepsi’s cola portfolio contributes 60-65% to its sales in the country. It aims to bring the cola to non-cola sales ratio to 50:50 in another 3-5 years.

“Our focus is on healthy, tasty and affordable products. We are looking at healthy whites (milk-based and soya products), value-added water like Aquafina Alive, which has been launched in the US, and more juices and juice drinks,” Mr Seth said.

Pepsi is looking beyond its mango drink Slice to launch more juice drinks. On plans for the snacks division under Frito-Lay, Mr Seth said the company is targeting the health platform to launch healthier snacks which are baked and use healthier oils that are less fatty. “We are looking at expanding the Quaker platform to launch more oat-based products to suit local tastes,” he added.

Pepsi has a separate innovation team to explore new products and variants. It has also set up a laboratory in Gurgaon to use international technology to launch locally-relevant products. Pepsi is working with the Punjab government on growing international-grade oranges in the state and expects local sourcing for Tropicana by 2011-12.