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CASH IN ON THIRST
April - May 2002 
 
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Future for 'Still Drinks' is definitely good though it is characterized by the deficiency of lack of variety, requiring innovations in flavors, ease of preparatoin and comfort of carrying.

 




Tea:

Tea is popular with the masses for its effect on the medulla oblongata, leading to an artificial alertness brought about by its inherent chemicals, namely caffeine, tannins, 10 to 20 per cent galotanic acid, bauhic acid, some proteins and ash. Tea in most traditional marketing systems was promoted in its powder form, via bulk, mixed-flavored tea boxes and dipping sachets (pouches), but all used in their warm form.

Flavored teas with base tastes of peach, lemon or mint now cater to iced tea buffs. The market for pre-mixed herbal and spice teas (popular in the oriental regions) is still completely unexplored in India, with flavors such as mint, thyme, spearmint, cardamom, cinnamon, ginger, lime, lemongrass, vanilla and clove having a great potential in regions such as Gujarat, Uttar Pradesh and Himachal Pradesh.

Bottled teas are not yet available off the stand due to the low percentage of sugar bricks (7-8 per cent), making it highly perishable. On the other hand, carbonated drinks have 12 per cent sugar bricks and CO2 as inherent preservatives, besides added acids.

However, the essentials of bottled teas would be one without milk and flavored with lemon/lime, herbs such as parsley, sage, celery, spearmint (pudina) and spices such as clove, cinnamon, cardamom or ginger. This industry is still in its infancy and it is very difficult to predict its potential growth rate. But given the number of tea lovers in India, bottled teas will do well and throws a challenge to creative favorites to work in sync with the marketing team and technocrats. The market size of the entire tea industry is highly varied according to the form the tea is dispensed in.

Coffee:

Coffee is a beverage generally preferred in south India. Again generally dispensed as a hot beverage, coffee can be of several kinds, like filter coffee, instant coffee (such as Nescafe/Bru), cappuccino and the recently emerged international brands of mochas and flavored/blended coffees (cinnamon/ Irish coffee), served in both hot and cold forms. Pouches of instant coffee (dip-and-use) have also found their way onto the stands.

Coffee holds the largest market share in the international beverage industry. The coffee market in India has witnessed a sudden increase, with café bars and bistros hitting the tea-dominated market scene. The size of the coffee industry is also highly variable depending on the form it is dispensed in; besides, it is highly variable between seasons and regions of the country. But there seems to be an incremental rise in coffee sales, at least in the metros. One could expect a rise in consumption to the scale of about 15-20 per cent per annum.

Non-aerated beverages:

The most diverse and widespread beverages in India are the non-aerated ones, called ‘still drinks’ due to the lack of fizz. Promoted in varied formats, flavors, packaging and increased shelf lives, ‘still drinks’ are the mainstay of the beverage industry. The market is worth approximately Rs 3,500 crore, and is increasing by two or three folds every year. Future for still drinks is definitely good though it is characterized by the deficiency of lack of variety, requiring innovations in flavors, ease of preparation and comfort of carrying.

Bottled water:

Water is not exactly classified as a beverage. However, due to the ease of procuring and the requirement of health, plain and simple drinking water is getting bottled under the label of mineral water. The government has recently made it mandatory for bottled water to have the safety mark – ISI. Bottling water is a high-investment and high-performance industry requiring well-equipped laboratories that costs a minimum of Rs 15 lakhs to Rs 18 lakhs, besides the costs for qualified personnel like microbiologists and related infrastructure.

Sold at approximately 20-30 per cent price of carbonated beverages, mineral or flavored water is turning out to be one of the leading businesses due to its ‘zero calorie’ nature. The new players are hitting the market with 'flavored' mineral waters and sport drinks, that is mineral water with glucose or Vitamin C and some suitably attractive flavor and colour. The market size is around Rs 1,500 crore with a 40 per cent growth rate.

Pulp/fruit juices and squash:

Usually confused and considered synonymous with non-aerated drinks, fruit pulps, juices and squash are high-sugar beverages, which are centrifuged and filtered to give a semi-clear appearance.

With a considerable growth in fruit cultivation in the mid-90s, perishable fruits are now being processed and new techniques of preservation are evolving, giving a boost to the beverage industry. Technology similar to milk processing is being used for concentration of juice, involving the removal of free water at low temperatures and increasing the sugar and acid percentage for better preservation, flavoring, appearance and reduction in volume for transportation. The methods used are thin-film evaporation with rotary evaporators, and high-vacuum falling-film or spinning-band distillation. Two-phase separators, i.e. bowl centrifuge, are used.

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