After selling its carbonated beverages portfolio almost two decades ago to Coca-Cola, Parle Agro is set to re-enter the segment with its own brand of carbonated coffee ‘Cafe Cuba’. The fast moving consumer goods company is keen to roll out its new brand across formats like pet bottles and cans, pitting itself against big multinational players in the Rs 15,000-crore carbonated soft drinks segment.
Prakash Chauhan, Chairman and Managing Director, Parle Agro, said, “We expect Cafe Cuba to reach sales turnover of Rs 1,000 crore within 12-18 months of launch. It would be our flagship brand along with Frooti.”
In 1993, the company sold its iconic carbonated brands such as Limca, Gold Spot and Thums Up to Coca-Cola. With a 10-year non-compete agreement signed with the cola company, Parle was not in a position to launch its own carbonated brand.
The company has marked an investment of Rs 150 crore with the new offering, and will enhance capacities by nearly 60 per cent across its 14 plants. It also has a marketing campaign of Rs 50 crore.
“The carbonated soft drink category is a competitive market. We have doubled sales and distribution infrastructure for Cafe Cuba. It took us 10 years to launch the product and we expect to distinguish the brand from today’s colas, lemon and orange drinks,” he added.
The company is increasing its distribution from the current 8 lakh outlets to 1.5 million. A diet version of Cafe Cuba (priced at Rs 20 for 250 ml) is also expected to be launched.
With sales turnover of Rs 2,000 crore this fiscal, Parle Agro’s largest selling brand is Frooti, followed by Appy and Appy Fizz. Roping in high profile brand ambassadors such as Shah Rukh Khan for Frooti during the last IPL season worked for the brand. “We have seen sales for Frooti jump by 20 per cent, despite a good monsoon when beverage sales are usually down,” said Chauhan.
However, Parle Agro also has a history of failed brands. In the past, it had tried to enter the fruit juice category under the Saint brand and even a milk and mango-based brand N’Joi.
purvita@thehindu.co.in