The Hindu Business Line : Functional beverages surge on health-platform

Mumbai June 1 A bottle of vitamin-water to refresh energy levels or fortified orange juice to reduce cholesterol levels. It may be just a matter of time before such "functional beverages" get rolled-out in the Indian market, observe officials with the estimated Rs 1,500 crore bottled-water industry.

Vitamin-water caused ripples in the local market recently, when Tata Tea picked up 30 per cent stake in health-drinks maker Glaceau and sold it off in another hi-decibel deal to Coca-Cola subsequently.

But, it may not be long before companies such as Pepsi and Coca-cola, for instance, plan to bring such products into the local market, said an official with a multinational beverage company, going by the popularity of these health-based products overseas. And it only helps, that lifestyle illnesses and health concerns are increasingly taking centre-stage in consumers' lives, he added.

Bottled water became commonplace, thanks to high-profile players such as Bisleri, Coca-Cola's Kinley and Pepsi's Aquafina.

And the segment continues to excite big corporates, personified in Tata Tea's decision to pick up equity in Mount Everest, the owner of the Himalayan brand water.

But the local regulatory framework may not be quite ready for fortified water, points out Mr Bejon Mishra, Executive Director of Consumer Voice.

Though an integrated policy on food, The Food Safety and Standards Act 2006, is in place, the rules are still to be framed and enforced, he points out. Only packaged drinking water and mineral water are covered by existing local norms.

If companies want to bring in fortified water, they will have to get clearance through the Prevention of Food Adulteration authority, under the Union Health Ministry, he said. Fortifying food is not without its concerns, adds another representative with a health-advocacy outfit.

Depending on the deficiencies in different regions, manufacturers may add vitamins, minerals etc and start making health-claims on that basis. This would be difficult to monitor, he said.

But an industry representative with the packaged water industry said that that health-claims are put on water or beverages only after clinical studies are done on them.

For example, Coca-cola's orange juice Minute Maid HeartWise had the US Food and Drug Authority's approval to claim that it reduces cholesterol; Minute Maid BoneWise is fortified with calcium.

Fortification also comes with an added cost. In the US, Glaceau's Vitamin-Water was about $1.50-2.50 a bottle, compared with about 50 cents for a Coke! But industry representatives observe that the market and its consumers are ready for health-oriented beverages, never-mind the cost.

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