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Fresca Juices is entering the carbonated fruit drink space under a newly created sub-brand called Fruzo. The Delhi-based packaged fruit drink company, which wants to make Fresca a national brand in the next 3-4 years, is also eyeing an entry in the snacks market by next year.
Akhil Gupta, MD, Fresca Juices, said, “We believe there is huge potential in the carbonated fruit drink segment. Currently, there aren’t much innovations being done in terms of flavours and variants. We believe we can tap into this potential by filling this gap in the market.”
30% growth
He added that regions such as Eastern Uttar Pradesh and Rajasthan have witnessed strong consumption trends in the carbonated fruit drink segment, which is currently growing at about 30 per cent year-on-year.
Under Fresca Fruzo, the company is launching four variants – Apple, Nimbu Masala, Mojito and Jeera – and will be priced at ₹10 for 160 ml pack and ₹15 for 250 ml pack. The company also plans to launch a ginger ale variant later this year.
The company aims to distribute its new products across two lakh outlets in all major North Indian markets. “We have installed a decent amount of capacity for the new products at our plant in Rai (Sonipat). But given the strong consumer response, we are looking to expand production capacity for carbonated fruit drinks through contract manufacturing,” he added.
Overall, Fresca Juices aims to touch the ₹150-crore mark in revenues by the end of FY2020. It raked in revenues of about ₹75 crore in FY 2019. “Our key focus will be on increasing the depth of distribution in the existing territories and gradually expanding to new geogrpahical territories.We have earmarked ₹50 crore for capital expenditure in the next one and half years,” Gupta said.
Currently, the company is present in 11 States and is looking at expanding to western and southern regions, in a bid to become a pan-India player in 3-4 years. “We are focusing on completing our beverages portfolio. We have already launched a product in 100 per cent juices segment. We are also working on a zero-sugar product using natural sweetener,” he added.
Meanwhile, the company is also exploring the snacks segment. “Sampling for snacks products has already started. We are finalising on the products, variants and packaging. I believe by next year we will launch snacks products,” Gupta added.
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