PepsiCo, Coke uncork new packaging

PET bottles, cans and tetra packs were the latest innovations caught on by the industry. However, PepsiCo, after evaluating its packaging options, has launched its latest brand Tropicana Twister in returnable glass bottles.

Says Sucheta Govil, vice-president (innovation), PepsiCo: "While the PET and tetra pack formats are growing at a fast rate, returnable glass bottles continue to contribute significantly to the volumes because of the ability to find a bottle anywhere for on-the-go refreshment."

Similarly, Coca-Cola has introduced small size packs named "Pocket Maaza".

According to Nielsen shopper trends, supermarket shoppers continue to visit the local grocer. In fact, they visited the local shop more than they did a year ago. Local stores still contribute 90 per cent to the sales of fast-moving consumer goods companies (FMCGs).

PepsiCo's main objective to launch Tropicana Twister in returnable glass bottles (RGBs), priced at Rs 12 for 250 ml bottle, is to tap the general trade channel. Coca-Cola's Minute Maid Pulpy Orange has emerged as the highest selling brand for the company in modern retail outlets, said a Coca-Cola executive.

PepsiCo is also competing with Coca-Cola in fruit drinks by playing up its pricing. PepsiCo, a late-mover in fruit drinks segment, had launched Tropicana Twister a few months after Minute Maid was rolled out in May last year.

PepsiCo fixed its launch price for Twister at Rs 22 for a 350 ml bottle, a price that looks Rs 3 lesser than Rs 25 for 400 ml of Minute Maid.

To a casual eye of a shopper in a retail outlet, both these bottles of Twister and Minute Maid look of the same size with Twister priced at Rs 3 less. The cost per litre (cpl) borne by the consumer on this pricing is actually a bit higher for Twister with cpl of Twister at Rs 62.8 per litre compared with Rs 62.5 for Minute Maid.

The cpl for Twister in 250 ml RGB works out to be much lesser at Rs 48 but costs borne by the company in RGB format are lesser and volumes are higher that compensate for lesser margins, say experts.

Coca-Cola is going the tetra-way for Maaza, which the company claims is the highest selling Mango drink in India. The brand is currently retailed out of 3 lakh outlets. Its new 200 ml pack named "Pocket Maaza" priced at Rs 12 is also aimed at catching consumers on-the-go.

Launched in Kolkata in April, Coca-Cola is now planning a national roll out for Pocket Maaza, driven by the strategy to provide easy-to-hold and easy-to-find packaging for its consumers.