Coca-Cola Plans To Fizz Up Ready-To-Drink Tea, Coffee Mart

Coca-Cola India is planning to foray into the ready-to-drink tea and coffee segment. "We are working out the details. May be, we will be in the segment by end-2002 or early 2003," Sanjiv Gupta, senior vice-president (operations), said.

He said that in India, tea and coffee accounted for almost 70 per cent of the beverages market, while soft drinks had a mere 2 per cent presence. "The coffee market is big and any serious player in the beverages segment would like to be part of the market. We have big plans on tea and coffee may be next year," he added.

 

Gupta, who today launched Coca-Cola's first-ever powdered soft drink concentrate, Sunfill, here indicated that slot machines could be one of the vehicles for the dispensation of the proposed ready-to-drink tea and coffee " But we have yet to decide," he said.

He said the company's entry into the powdered soft drink concentrate market was in keeping with Coca-Cola's resolve to lead a beverage revolution in the country, giving consumers a wide variety of ready to drink products and catering to all categories of consumers and their budget.

While the other powdered soft drinks in the market require mixing of sugar or other ingredient, "Ours is an instant ready-to-mix soft drink concentrate," Gupta said.

Sunfill is being produced under contract in a new plant at Bhopal. But Coca Cola may go in for more such manufacturing facilities as the product is launched country-wide. All expansions will be on contract manufacturing basis-- Coca Cola will provide the technology and limited finance. The company has invested $ 15 million on the new product.

Pitched against Rasna of Pioma Industries, which commands 70 percent of the powdered soft drink concentrates market, Sunfill is currently available only in one flavour-- orange. More flavours, including mango and elaichi, will be added in due course. "We will launch flavours based on the tastes and needs of the different regions," Gupta explained.

He pointed out that the carbonated soft drinks now being marketed by Coca Cola were highly urban skewed and did not cater to the rural population in a big way. Sunfill has been so priced as to be within the reach of even the poorest in the rural area. Moreover, it could be picked up from the nearest grocer shop. A sachet of Sunfill costs only Rs 2 which is cheaper than tea, Gupta said.

To a question on the impact of the boycott call given by certain minority bodies against Coca Cola in the wake of the Afghanistan developments, Irfan Khan, vice-president, corporate affairs, said it was almost nil. "I do not think anybody was serious about it," he said.