FMCG slugfest hots up in beverages market

Even as Tata Global Beverages Ltd is extending the distribution and reach of its new launch Tion to four Indian states...

Written by Lalitha Srinivasan | Mumbai | Published: August 20, 2010 2:40:28 am

Even as Tata Global Beverages Ltd( TGBL) is extending the distribution and reach of its new launch Tion (a fruit -based beverage) to four Indian states,Coca-Cola India has forayed into the dairy sector in India with the launch of ‘Maaza Milky Delite.’

Incidentally,both companies are promoting their new launches on the health platform. Yet another FMCG major Godrej Hersey’s Ltd is extending its distribution and retail network to southern states to promote its fruit beverage brands Jumpin and Sofit.

To take on new rivals in the Rs 3,700 crore branded fruit -based beverages sector,Godrej Hersheys is currently beefing up its operations.

Meanwhile,Coca-Cola India has introduced its new launch in Kolkata to start with. Interestingly,Coke has launched its dairy brand (a blend of milk and juice) only in Vietnam (Nutri Boost),China (Super Milky) and India. With this initiative,Coca-Cola India will directly take on Tata Global Beverages,Amul ,Mother Dairy,Godrej Hershey’s and Parle Agro in this sector. With the entry of new players such as Tata Global and Coke,the market dynamics will soon change in the branded fruit-based beverages sector in India. Percy Siganporia,managing director of Tata Global Beverages Ltd told FE: “This year,our main objective is grow Tion’s distribution and spread in key markets. Encouraged by its success in Tamil Nadu,we have just extended the brand to four southern states.”

“In India,the company’s core focus is on investing on the growth of ‘T!on’ during the course of this year.

According toSiganporia,the company is setting in a motion a mindset to widen its beverages portfolio across the globe starting with India. “We will ll invest in good-for-you beverage executions across different regions of the globe based upon the relevant consumer insights.,” he added

On Godrej’s strategy,Vivek Mathur,chief executive officer of Godrej Hershey’s said: “ This sector is rapidly growing at the rate of 35%. We are extending the distribution of our brands Jumpin and Sofit tin southern states after seeing consumer response in other markets in India.”

According to Ricardo Fort,vice president,marketing ,Coca-Cola India ,Coke’s new launch is developed at Coke’s Research & Development Laboratory in Gurgaon.

“As part of the phased launch,Milky Delite will be available in Kolkata and will be followed by a nation-wide launch later this year,” he said.

Prior to the launch of Milky Delite, Coca-Cola India has also developed a special ‘ Cool Chain ’ right from the production plant to the distribution system and retailers. Coke’s new launch would be retailed across 3,000 outlets in Kolkatta to start with.

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