There was a time when strategic discussions between the Indian and global team of beverage giants such as PepsiCo and Coca-Cola mostly focused on their arch rival. Now, this is no more into existence. The major topic of such meetings in the present is about the rising threat from the local and small brands.
There are a minimum of two dozen regional aerated drink manufacturers in the country including Hajoori & Sons from Gujarat, City Cola from Delhi, Jayanti Beverages based in Alwar, Shri Brahm Shakti Prince Beverages from Delhi and Boss Beverages from Bareilly. These vendors are silently stealing the spotlight from the multinational giants mentioned above as they sell quality products at almost a 20 percent cheaper price tag. This is the case especially in the small tows and rural areas of the country.
The B brands have captured a minimum of 10 percent of the market share together. This is the highest that the firms have ever captured of the Rs 14,000 crore aerated drinks industry in India. They are quickly taking control of many pockets in the country.
The maker of Sosyo, Hajoori & Sons claimed that it has gained 29 percent of the market share in Gujarat. The smaller brands in Uttar Pradesh have managed to gain 22 percent of the market share in summer.
The industry experts attribute the increasing popularity of the local brands to their deep penetration into the market and their low pricing as they do not spend too much in marketing. The veterans in the beverage industry claim that the small brands started as a bubble and now they have emerged as a threat to the two cola giants.
Regarding this, Vipul Prakash, the Vice President of Marketing at PepsiCo India claimed that they can no longer ignore the local players who operate in limited geographies as they compete on the price.
