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| Coke, Pepsi add a dash of lemon to cola war |
| BS Reporters / New Delhi May 09, 2009, 00:34 IST |
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The battle for branded nimbu paani market is geting hotter with Coca-Cola India set to take on PepsiCo and Parle Agro by launching a lemon drink this summer.
According to people close to the development, the lemon drink will be launched under its juice drink brand Minute Maid, which is already present in pulpy orange flavour in the domestic market. Earlier this year, PepsiCo had taken the lead by entering the segment with Nimbooz under its 7 UP brand. Parle Agro had followed suit to bring out LMN nimbu paani brand in the market.
Although a nascent category, the packaged nimbu paani is largely an untapped market. Most consumers are either used to drinking nimbu paani at home or pick up non-branded products. Earlier, beverage companies stayed away from the category because they would have no USP. But research has shown that there is a demand for well-packaged nimbu paani products in the market.
Industry experts estimate the nimbu paani market to be around a billion cases by volume in 2009. The non-carbonated beverage segment is growing at double the rate of carbonated one in the Rs 7,000-crore domestic beverages industry. The juice and juice drinks market is pegged yearly at Rs 1,500 crore or 500 million cases by volume. Experts believe that the ready-to-drink packs, along with the price points, will support the growth of the segment. “Ninety per cent of consumption of packaged juice and juice drinks is out of home, giving companies a great opportunity to grow,” an industry expert said.
Pepsi’s Nimbooz is available in 200 ml returnable glass bottles, 350 ml PET and 200 ml Tetra, attractively priced at Rs 10, Rs 15 and Rs 10, respectively. LMN is available in Tetra packs of 110 ml and 200 ml, priced at Rs 5 and Rs 10, respectively, along with a 500 ml PET priced at Rs 23.
The entry of players such as PepsiCo and Parle Agro have fuelled the category with Nimbooz running out of stock within days of its launch. “We are delighted by the excellent consumer response to the Nimbooz, which has been significantly better than anticipated,” a PepsiCo spokesperson said, adding: “We will do our utmost to meet every consumer’s expectation by ensuring availability for Nimbooz across markets in the coming months.” Parle Agro on the other hand believes it has an edge over competition. “For the last 20 years, Parle Agro has been the market leader in fruit-based beverages; we have constantly worked keeping in mind Indian preferences, formulating products that cater to the Indian palate. It is without any doubt that only an Indian company can understand what real nimbu paani tastes like and what the Indian consumer wants in a packaged offering,” Nadia Chauhan, joint managing director and CMO, Parle Agro, said.
When asked about the plans of entering the nimbu paani segment, a Coca-Cola spokesperson said: “We are always on the lookout for new beverage opportunities and will come back to you as our plans fructify.”
Coca-Cola is also trying to find extra capacity, which may be available to launch the product. However, sources close to the company say that the launch may be delayed till the monsoons.
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