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In line with its global commitment to cut down sugar and calories in its products by 2025, snacks and beverages major PepsiCo is stepping up the execution of the strategy in India.
It is launching a slew of products this year, such as Pepsi Black, a zero-sugar product, besides a pan-India roll-out of its stevia-sweetened 7Up.
Vipul Prakash, Senior Vice-President - Beverages, PepsiCo India, said the company will roll-out a new product every quarter to widen its portfolio, with focus on lower-sugar and functional beverages.
“Typically, an India consumer has eight beverage occasions in a day. Our aim is to broaden our portfolio to cater to all these consumption occasions. In line with our global commitments and consumer demand, we will have a strong play in the low-sugar and zero-sugar segments with products like Pepsi Black. In India, we are trying to reach our goals faster than the global commitment timelines,” he said.
Troubled watersCarbonated soft-drink makers are facing challenging times with slowdown in rural demand, and urban households switching to healthier drinks. At the same time, the industry is bracing itself for the Goods and Services Tax (slated to be rolled out in July), which has put carbonated drinks on a higher slab.
“We are also reducing sugar levels in our core products. We have been testing our new stevia-sweetened 7Up since last year. It has 30 per cent lower sugar levels. We hope to roll it out across the country by the end of the year to replace the current version of 7Up”
The organised soft-drink industry has also been forced to increase prices due to a rise in taxes in the past 2-3 years. This has helped several regional players gain traction with lower price points.
Asked if the company has changed its price metrics this year, Prakash said: “In February, we brought back the ₹10 price point for our returnable glass bottles. We have been experimenting with this price point in Uttar Pradesh and other regions in the North. It has given us volumes, but it is not a financially sustainable way of growth.”
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