Parle Agro to add more fizz to biz with new fruit-based drinks

Abhishek Law Kolkata | Updated on January 09, 2018

Nadia Chauhan, Joint MD and CMO, Parle Agro

Aims to be a ₹5,000-cr company by next year

Parle Agro — which makes fruit-based drinks like Frooti, Appy and Appy Fizz, and bottled drinking water brand Bailley — plans to be a ₹5,000-crore company by next year.

A de-growth in the synthetic carbonated soft-drink space and increasing popularity of fruit-based ones have seen Parle Agro increase its market share year-on-year.

The company will look to close the current year (Parle Agro follows a January-December year for accounting purposes) at around ₹4,200 crore.

According to Nadia Chauhan, Joint Managing Director and CMO, Parle Agro is also open to brand extension and portfolio expansion with more fruit-based offerings. Butwill go slow, as it does not want to launch “me too” products.

“We will, of course, try and expand the portfolio. I think that’s something important to us. But, unlike a lot of other companies we are not the ones who will go on introducing many products at a time. We take our time,” she told BusinessLine.

“Our agenda is to introduce products with a difference, which are not me-too or a copy of an existing one. Such innovations take a long time to establish and we have quite successfully done that,” Chauhan added.

Parle Agro introduced Appy Fizz — an apple flavour sparkling / fizzy drink — in 2005, virtually creating the fruit-based fizzy drink category. Today, it occupies a 99 per cent market share.

Similarly, earlier this year, it launched ‘Frooti Fizz’ (its mango-based fizzy fruit drink) — the first extension of its most popular and largest revenue generating brand, Frooti — in 32 years.

The FFSD (or fruit flavoured still drink) category in India is pegged at ₹5,500 crore, with the mango-based drinks occupying 85 per cent of the market.

Marker share

While Frooti enjoys a 25 per cent market share in the mango-based drink category, Appy (the apple flavoured drink from Parle Agro) occupies a 65 per cent market share in the apple-based drink segment.

According to Chauhan, there is no “either / or” between fizzy and non-fizzy drinks when it comes to determining the future growth drivers for Parle Agro. The entire fruit-based drink segment is growing.

Published on December 20, 2017

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like