Rasna to acquire Jumpin from Hershey's India

Rasna said it is acquiring beverage brand Jumpin from Hershey's India as part of its strategy to enter the ready-to-drink (RTD) segment.

While Ahmedabad-based Rasna did not disclose the acquisition cost, it said Jumpin is independently valued at ₹350 crore, based on its future opportunity and growth. Industry executives, however, put the deal size at about ₹250 crore.

"We have acquired the brand IP, but it's an asset-light acquisition without any plants. We wanted to enter the RTD segment and had explored both extending Rasna into the category as well as acquisitions," Piruz Khambatta, group chairman of Rasna. "We have been on the lookout for brands in this category for long and Jumpin was a right fit when it comes to the value, scalability and brand recall."

Jumpin, originally launched as a flagship product of the Godrej Group, became India's first tetra pak brand in the early 80s. It was subsequently managed by Hershey's India but was phased out during the pandemic.

"There is a trend of old and legacy brands being revived, some by existing companies and others through acquisitions like the Reliance Campa Cola deal. We will be relaunching the brand with a healthier positioning," said Khambatta.

"Jumpin will be fully formulated using Indian fruit juices only. Through this acquisition, we aim to unlock new synergies in product development, distribution and market expansion, while continuing to deliver value-driven, high-quality offerings to the Indian consumer," said Khambatta.

The company said it is aiming for ₹1,000 crore share of the RTD business, with Jumpin's pan-India diversification helping it diversify and consolidate its position within the non-carbonated beverages category.

The five-decade-year-old instant beverage maker Rasna, which has ten factories and a distribution reach of 1.8 million outlets, is the market leader with 90% share in the country's instant drink segment.

According to IMARC Group, India's fruit juice market is projected to reach ₹1.23 lakh crore by 2033, growing at a CAGR of 11.9% over the next eight years.

Rising health awareness and escalating demand for natural and nutrient-rich beverages are the main drivers of market growth.

However, globally and well as in India, shifting consumer tastes are prompting beverage companies, including Coca-Cola and Pepsi, to find ways to diversify from traditional soda and high-calorie juices.

"Low sugar or diet food is still niche and doesn't really sell, controlling just 1-3% market share in most food and beverage categories. Our approach is to voluntarily reduce sugar, salt and fat without any need for external regulations," added Khambatta.

Rasna said it has identified key wellness drivers essential for the relaunch of Jumpin brand with fortified vitamins and low-calorie formulations. The company is also exploring value addition in Jumpin with proteins and milk-based additives.