Rural India switches to packaged juice

Even as urban Indians kick their cola habit and switch to healthier options, PepsiCo India is witnessing a health and wellness macro trend emerging in rural India.

The rising need for convenience is triggering a huge demand for health products, according to the company.

“There is a growing demand in tier-II towns, and even rural markets, on the back of growing affluence in these markets. The new category is all about fruit juice nutrition and refreshment in a convenient branded format. This is where the relevance of packaged juice lies, and we are witnessing this phenomenon trickling down to the smaller cities and towns,” said an official from Pepsico India.

As fruit juice competes head on with carbonates, the latter is slowly losing appeal among health-conscious consumers.

A fad in urban India earlier, the company has noticed a shift in consumer beverage demand for non-carbonated alternatives even from rural India, given the changes in lifestyle and affordability.

“The development of organised and modern trade formats (amongst smaller towns) have enabled the category to percolate in smaller markets, and would continue to be a driving force,” said Homi Battiwalla, Senior Director, Marketing, PepsiCo India, in an earlier interaction with Business Line.

He pointed out that PepsiCo was aggressively working to expand reach, especially in rural areas “that have been a key growth driver,” and is retailing its fruit juice Tropicana to smaller towns.

Tropicana has leveraged its global expertise and launched blends in India.

Last summer, saw the entry of two new beverages in the Indian market, coconut fruit blends, which combine coconut water and fruit juice.

The company has ensured that its expansive distribution network reaches out to more than 20 lakh outlets.

However, the cola major has not given up on its carbonated range to serve the underserved markets of the country.

“We are looking to increase our footprint through a mix of both leveraging our carbonated soft drink footprint and building differential focus on this segment, through new price packs, promotion strategies and building an advantaged go-to-market strategy,” said Battiwalla.

He added that India has a huge fruit and fruit juice sub-culture, and that the unpackaged or street juice segment is large.

“We feel there is tremendous potential that is waiting to be explored. We have been driving brand penetration deeper beyond urban centres in key lead markets over the last two three years,” he said.

COMMENT NOW