Fruit Drinks: Pepsi Coke in new turf war

Coca-Cola and Pepsi, which have triggered books and case studies on the cola war, are ready to battle each other on a new turf in India: fruit drinks. Pepsi is said to be ready with Tropicana Twister, an orange drink, to take on Coca-Cola’s Minute Maid, which debuted in India in February and went national in May.

According to industry and trade sources, Twister will strike next month at the time of Diwali and the executive of one retail chain said the date had been fixed as November 9. The Indian arm of PepsiCo though is playing with its cards close to its chest. An email from its public relations agency said: “PepsiCo would be happy to share the details on Tropicana Twister close to the time of the launch.”

The launch of Twister, already successful in Vietnam, will do more than add another brand to the shelves. It will mark Pepsi’s entry into a segment in India that has opened up with the entry of Minute Maid, which, full of orange pulp, is neither pure juice like Tropicana nor plain fruit drink like Coke’s own mango drink Maaza.

There is immense opportunity to be tapped in the segment of juice and fruit drinks. Its size is estimated at Rs 5,000 crore, which is not much less than the Rs 6,000 crore that the carbonated drinks market – cola, lime and orange put together – is worth. What is more, brands account for less than a quarter of the juice and fruit drinks market, leaving the field open for the big boys to take some easy pickings at the expense of small companies.

In volume terms, the total juice market in India – juices, nectars and fruit drinks – is pegged at 500 million cases. Of this, only 10 per cent is accounted for by packaged products and the rest is sold loose. Within this 10 per cent – or, 50 million cases – 85 per cent is taken up by mango-based drinks, juices and nectars. Against this, trade sources say Minute Maid sold a million cases in the first month.

In anticipation of Pepsi’s imminent challenge, Coca-Cola is not sitting quiet. It is test marketing Maaza Aam Panna, a spicy, tangy mango drink, in 1,000 stores in Agra, Bareilly and Lucknow. It is being bottled in Bhopal and sold in 200 ml tetra packs priced at Rs 12.

“In Maaza, Coca-Cola India already has the country’s number one juice drink brand. Now with the national launch of Minute Maid Pulpy Orange, we believe this would further extend Coca-Cola India’s leadership in the juice drink segment,” said Venkatesh Kini, vice-president, marketing, Coca-Cola India.

Coca-Cola and Pepsi squaring up in the fruit drink segment shows the shape of things to come as the two companies have been increasingly looking for revenue streams other than those of carbonated soft drinks. Besides, say experts, fruit beverages overcome the price barrier that the pricier pure juice brands have not.


Battleground

Pepsi to launch Tropicana Twister, an orange drink, during Diwali to take on Coca-Cola’s Minute Maid
The segment of juice and fruit drinks in India is estimated to be Rs 5,000 cr
In volume terms, the total juice market in India - juices, nectars and fruit drinks - is pegged at 500 million cases. Of this, only 10 per cent is accounted for by packaged products and the rest is sold loose