Coke to partner NGOs for Vitingo's rural reach

After a test launch of Vitingo, an orange-flavoured beverage fortified with micro-nutrients, in Orissa last year, Coca-Cola India is planning to expand the product’s reach nationally, soon. But more than the flavour or the launch, what matters this time is the marketing medium.

Rather than depending on traditional retail network, the firm is trying to cash in on the reach of non-governmental organisations and self-help groups in far-flung areas for production and distribution of the brand.

“Vitingo is a no-profit, no-loss product. Our target is rural India, as a majority of the people are iron-deficient. We have already marketed it in Orissa and Tamil Nadu through a few non-governmental organisations. The product’s reach will be expanded soon,” said Atul Singh, president and chief executive officer of Coca-Cola India and South West Asia, on the sidelines of a programme in Kolkata today.

The firm had launched Vitingo, a low-priced powder drink, which contains iron, folic acid, vitamin A, vitamin C and zinc, as a pilot project in Orissa in association with an NGO, Bharat Integrated Social Welfare Agency, along with various other self-help groups (SHGs). It has also initiated a pilot project in Madurai and Salem with Madura Micro Finance in Tamil Nadu.

“There is a potential of distributing 100,000 sachets per month in each district to Madura beneficiary families alone. Additionally, we have plans to work with an internationally reputed NGO based in Bangalore, to create a Vitingo production unit that will be owned, managed and run by the rural poor community-managed resource centres (CMRCs),” a top official from Coca-Cola said.

“This would complete the cycle of manufacturing Vitingo by the rural poor and made available to the rural market through cost-effective distribution systems. Coca-Cola will support with initial investment and training to the CMRCs representatives in setting up the production unit,” he added.

Sources close to the development, said the product may be launched nationally by April.

Denying this, the company said its focus was to cover three states by the first half of next year through SHGs and NGOs.

Coca-Cola and BISWA plan to reach out to more than 0.5 million women and children by end of this year as part of the project across 30 districts in Orissa.

“Coca-Cola has tied up with us and are selling the product at a price of Rs 2.50 per packet in the state. The project has got a good response and this fortified refreshing beverage will help to address the issue of micro nutrient malnutrition,” said K C Malick, BISWA chairman.