Miniatures make a comeback for Coke and Pepsi

Both beverage giants will launch sub-200 ml cans this summer

The summer of 2016 will see beverage giants PepsiCo India and Coca-Cola India focus on mini-cans. On February 18, PepsiCo will unveil its 150  ml mini can, priced at Rs 15. Coca-Cola is set to respond with 180 ml cans that will be priced at Rs 20.
 
This is not the first time miniatures have been adopted as a sales strategy attempt by the cola majors. Fourteen years ago, Coca-Cola launched Chota Coke, a 200-ml glass bottle, at Rs 5. While volumes grew 30%, margins were hardly sustainable.
 
Ramesh Chauhan, chairman, Bisleri International, considered India's cola king and who sold his popular Thums Up brand to Coca-Cola, says getting the price-value equation right is critical in beverages. Chauhan himself is retracing his steps back to carbonated drinks 23 years after he sold Thums Up. He is now launching Bisleri Pop, priced at Rs 15 for a 300-ml PET, which he says is affordable and just right for his target audience.

 

This, ironically, is lower than what Coca-Cola will charge for its new 300-ml PET bottles, which will be priced at Rs 20. Coke’s rollout will be around the same time as the 180 ml cans.
 
Coca-Cola executives say the pricing has been worked out after taking into account all factors from cost of production to transportation and eventual sale. "Glass bottles require greater capital investment, so pricing it thin is possible only if you are doing good business. PET bottles typically start from around Rs 15-20 per unit, which is what we've done with the new bottles," said a Coca-Cola official, on condition of anonymity.

 
Vipul Prakash, vice-president (beverages), PepsiCo India, says the objective of the 150 ml mini can is to push consumption in that category, currently less than 5% of the company’s revenues. "You first had glass bottles, then PET bottles, and now with growing aspiration levels, cans can take off provided they are affordable. With mini cans we should be able to crack that code," he says.