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Coke to set up two new packaging units for Maaza

Purvita Chatterjee

Mumbai , Oct. 1

COCA-COLA India has decided to set up two more carton making units in the Eastern and Southern parts of the country for its Maaza brand.

Having introduced the wedge shaped triangular pack size at Rs 5 for the Maaza brand recently, the company has decided to enhance its packaging capacities for manufacturing the Maaza brand, which has growing at a rate of more than 150 per cent, according to the company.

Speaking to Business Line, Mr Amit Oberoi, Vice-President, Regional Operations, Coca-Cola India, said, "We are looking at setting up new manufacturing facilities for the tetra units in the eastern and southern regions. These would either be our own manufacturing facilities or there could be sub-contracted units for making the Tetra Paks."

Currently, Coca-Cola India has its sub-contracted manufacturing unit for cartons situated at Bhopal, which services the northern and central parts of the country. By spreading out its manufacturing facilities in the eastern and southern regions, the company hopes to improve upon the logistics and distribution network for its Maaza brand. Besides there are also plans to introduce more flavours under its Maaza brand franchise.

As Maaza had sported favours such as that of orange and pineapple some years ago, the company is plans to re-introduce these flavours back in the market. "After mango, it is orange and pineapple which are the most popular flavours in the fruit drinks segment and we are planning to re-launch these flavours," said Mr Oberoi.

The company has also decided not to increase the prices for its Maaza brand in the rural markets. "Recently we have taken a 20 per cent price hike across all our brands but there are no plans to increase our prices for the rural markets and this holds true for the Maaza brand as well," stated Mr Oberoi. Almost 30 per cent of total volumes currently comes from its rural sales.

The company is also contemplating to tap the export market for Maaza. Added Mr Oberoi, "We might consider entering the Middle East market with Maaza but there are no serious plans as yet."

Maaza currently commands a market share of over 65 per cent in the fruit drinks category followed by Frooti at 30 per cent and Pepsi's Slice brand at almost 12 per cent.

Meanwhile, the company has come out with a festive offer for consumers. With the purchase of every 1.5 litre and 2.25 litre pet bottle the consumer will get a 125 ml Maaza Tetra Wedge free. The consumer can avail himself of this offer till Navratri and it is available with all Coca-Cola products. Launched in April this year and called Chottu Maaza, Maaza Tetra Wedge is unlikely to change the Rs 5 price point. Commenting on the offer Mr Oberoi said, "Maaza is currently the market leader in the mango juice category and is identified as a "healthy" drink. The festival season complements the consumption of large PET bottles of carbonated soft drinks among housewives and juice-based soft drinks among children."

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