It may be the season for mangoes but Parle Agro is pushing its Appy Fizz to become a ₹1,000 crore brand in the next two years with new brand ambassador Salman Khan in tow.
Its flagship mango brand of Frooti with a ₹2,200-crore turnover is already facing stiff competition from both MNCs and domestic players in the ₹4,500 crore fruit drink category.
Dominant market share
“We already have a 95 per cent share in the sparkling fruit drink segment with Appy Fizz and want to take its turnover from ₹700 crore to 1,000 crore in the next two years as it has been growing at almost 50 per cent,’’ stated Nadia Chauhan, Joint Managing Director, Parle Agro.
The Mumbai-based ₹4,200-crore Parle Agro takes the onus of creating the sparkling fruit drink or fizz category in beverages with Appy Fizz and wants to capitalise on its dominant market share.
With a ₹200-crore advertising and marketing budget, Parle Agro skews its spends towards summer and the IPL season when its beverage brands such as Frooti and Appy Fizz tend to have the maximum sales.
Last year, it had roped in bollywood actress Alia Bhat as its brand ambassador for Frooti. The mango drink category is, however, getting competitive and cluttered with new entrants such as Fonzo (Bisleri International) and even ITC making claims to enter the segment with Bnatural.
“We are ambitious with Frooti and want to double its turnover in the next 3-5 years to make it the number one brand. There is competition not only from MNCs but even regional players such as Manpasand Beverages, but we have a 27 per cent share in the category,’’ Chauhan added. Maaza (Coca Cola) holds a 40 per cent share followed by Frooti at 27 per cent and Pepsico’s Slice at 14 per cent in the mango drink category.
However, growth in the fruit drinks category has slowed down to single digits between 8-9 per cent.
Parle Agro would also be increasing its distribution network by 25 per cent from the current 1.8 million outlets.
However, when it comes to its packaged water brand of Bailley, Parle Agro will stay away from hiring high-profile brand ambassadors. “We are not going to be making investments into marketing and advertising for Bailley. There are already 10,000 packaged water brands in the country with several local players,’’ added Chauhan. Bailley has 56 manufacturing plants run by franchisees.
As for Cafe Cuba, its coffee based carbonated drink brand which was launched in 2014, Parle Agro has decided to restrict it to the institution segment with limited distribution. In the past the beverage major has exited categories like snacks and confectionery.