Hotline: 1800 102 2007
X
Search Business Opportunities
Mar, 17 2018

PepsiCo India Adds Ethnic Flavours To Take On Local Players

The company is introducing new ethnic favourites like guava chili and jeera to push sales apart from mainstream flavours such as lemon and orange.

Under pressure from small regional beverage players that have been snapping at the heels of large MNCs, PepsiCo India has lined up around seven new fizzy drinks under its Slice brand to lure consumers.

The company is introducing new ethnic favourites like guava chili and jeera to push sales apart from mainstream flavours such as lemon and orange.

A spokesperson for PepsiCo India said the variants will have 11% juice and will be sold in smaller serves of 250ml at an affordable price point.

As per the industry experts, while sugary carbonated drinks attract GST of 40%, companies pay around 12% GST on juices. PepsiCo’s new drinks are slated to fall into the latter category.

A spokesperson said, “The new range of locally relevant, fruit juice drink with fizz under brand Slice will be available as a pilot in select markets to start with. Rural and rest of urban (RoU) segments are currently 60% of the juice category and have been growing faster than metros. By riding on both company and franchise go-to-market sales and distribution infrastructure, we want to dial up growth and market access for our juice products in these key rural, RoU markets.”

Over the last few years, the Rs.14,000-crore carbonated soft drink industry in India has faced flak from consumers, who suddenly had a plethora of healthier options, such as dairy products or juices from local players to choose from.

Akhil Gupta, MD of New Delhi-based Fresca Juices said, “We introduced juices in all possible pack sizes, from 160ml and 300ml to one-litre and even two-litre economy packs. Starting with just one litchi flavour, Fresca has currently introduced new flavours, including orange mojito and tomato.”

Prices of carbonated drinks also witnessed an upward trend with the government increasing sin tax. To add to the woes of biggies, small regional players cropped up, launching 250ml PET bottles at Rs 10, which often mimicked variants from the larger players. As a result, sales growth of the industry remained stagnant.

CEO of a Gurgaon-based beverage company said, “PepsiCo’s new offensive will be watched carefully by beverage companies, as many said blending fizz and fruit is a tricky job. Parle Agro’s Fruity Fizz didn’t work in the Indian market.”

Comment
image
Related opportunities
  • Quick Service Restaurants
     About The London Shakes: The London Shakes are the re-inventors of..
    Locations looking for expansion Madhya pradesh
    Establishment year 2009
    Franchising Launch Date 2011
    Investment size Rs. 5lac - 10lac
    Space required 100
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Indore Madhya pradesh
  • Quick Service Restaurants
    About Us: Established in August 2015, Hashtag Foods is a headed..
    Locations looking for expansion New Delhi
    Establishment year 2015
    Franchising Launch Date 2019
    Investment size Rs. 10lac - 20lac
    Space required 250
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi New Delhi
  • About Us: Join hands with Iris Florets - the happy play..
    Locations looking for expansion Telangana
    Establishment year 2014
    Franchising Launch Date 2015
    Investment size Rs. 5lac - 10lac
    Space required 2000
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Hyderabad Telangana
  • Repair Services
    About Us: BECOME A PART OF OUR FAMILY The PHIXMAN franchise industry..
    Locations looking for expansion New Delhi
    Establishment year 2013
    Franchising Launch Date 2015
    Investment size Rs. 10lac - 20lac
    Space required 200
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater West Delhi New Delhi
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities