The
soft drink concentrate (SDC) market in India, which includes powder
and liquid concentrates and squashes is valued at Rs 250 crore. Powder
concentrates constitute about 60 per cent in terms of value of the marketshare
of the SDC market and 85 per cent in terms of volume. The size of the
powdered drink segment which is estimated to be Rs 85 to 90 crore per
annum has experienced around 4 per cent growth last year. The industry
expects the market to grow exponentially.
The powdered
soft drink market is expected to grow significantly from its present
small share of 0.2 per cent of 11 billion litres of the in-home cold
beverage market.
The powdered
soft drink category is divided into sweetened and unsweet- ened segments.
While the unsweetened segment dominated the market until now, the recent
introduction of low-priced sweetened products is expected to induce
a shift from the unsweetened to sweetened category. “Heavy advertising
and promotional activity will generate tremendous awareness in the market,
and is expected to further boost sales in this category,” says Ajit
Sahgal, director, KJS India, a 100 per cent subsidiary of Philip Morris
India, “We expect a growth rate of 30 per cent per year over the next
five years in the sweetened segment. The unsweetened segment is expected
to decline, as the Indian consumer will look for value and convenience.”
Rasna
has dominated this sector for 18 years. Even today, Rasna enjoys a market
share of 82 per cent in the SDC segment in the country. However, with
MNCs like Coca-Cola India and Phillip Morris India moving into the powdered
soft drink market, the heat has just been turned on.
“Rasna
was launched at a time when the average Indian did not have easy access
to a soft drink, then priced at Rs 5. The company targeted the common
man who was unable to afford a soft drink by marketing a drink which
then cost as little as 30 paise per glass,” says Piruz Khambatta, chairman
and managing director, Rasna Pvt. Ltd. The brand has enjoyed a headstart
over its competition, having been first launched in Gujarat 18 years
ago. It now enjoys the largest reach in the country, especially in the
rural markets. Earlier, the brand was targeted as a refreshing drink.
Today, it provides greater emphasis on its health benefits.
Coca-Cola
has been studying the beverages scenario to identify new areas with
high potential for growth, keeping in mind the company’s strengths.
The company identified the powdered drink category, which was dominated
by Rasna and several other small brands enjoying niche up-market position,
as one area of opportunity. “The idea was to have a product that would
be targeted at the middle and lower income consumers, have a very low
unit price, and yet have the guarantee of a top-class product quality
backed by the experience and expertise of The Coca-Cola Company,” says
Sanjay Choudhry, regional manager, public affairs and communication,
Coca-Cola India. “As a result, the company launched Sunfill, a powdered
drink that has been developed locally based on the preferences of the
Indian consumer and keeping in mind the Indian palate,” he says.
