Fruit juice with fizz stirs up competition

Prime Minister Narendra Modi’s suggestion to beverage companies to include two per cent fruit juice in their carbonated offerings is stirring up fresh competition between MNCs and home-grown players in the ₹14,000-crore domestic beverage category.

While Coca-Cola has timed its new Fanta infused green mango close to the Make in India week, Bisleri International has also strategically pitted itself against the MNC whom it had sold its erstwhile carbonated brands two decades ago with its own fruit-based carbonated brand – Bisleri Pop, during the same week.

“We are now on the same boat with Coca-Cola and will do whatever it takes to increase distribution and capacity to compete against them. Our flavours are unique and though we may not have enough production capacity, we plan to quickly enhance it along with 30-40 per cent increase in distribution,” said Ramesh Chauhan, Chairman, Bisleri International, the maker of the largest packaged water brand in the country.

Gujarat-based company Manpasand Beverages, which recently raised money through an IPO and backed by PE funds like Saif Partners and Aditya Birla Private Equity, is getting ready to beat the MNCs through a slew of healthier fruit-based carbonated beverages and now intends including coconut water in its portfolio. “MNCs use a synthetic base for their carbonated beverages, while we have created the carbonated fruit drink category with our Fruits Up brand since the time the Prime Minister announced that carbonated drinks should have juice about a year back,’’ said Dhirendra Singh, Managing Director, Manpasand Beverages.

The sparkling carbonated fruit drink segment is also getting crowded with more international players entering the fray. Recently UK-based company Twiss (in which Indian company, the Tirupur-based Amarjyothi Group has picked up a majority stake) decided to enter the segment with four fruit-based flavours. “There were only colas and flavoured carbonated drinks in India. So we thought of something in between as a sparkling fruit juice drink and it was a coincidence that the launch was made at a time when the Indian Prime Minister was adding two per cent fruit juice in carbonated drinks. Manufacturing in India is a part of our long term strategy and we will be competing with the MNCs,’’ said Nitin Menon, Managing Director, Twiss Drinks India.

Meanwhile, Coca-Cola is getting ready to extend its Fanta franchise with more fruit based flavours like litchi and strawberry.

“It was our Prime Minister who gave us the idea and made us research to have a fruit juice with fizz and we chose Fanta as a pilot,’’ added Venkatesh Kini, President, Coca-Cola India.

COMMENT NOW