Dabur to come up with less expensive juice-based beverages

Beverages and convenience foods face price issues

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000 crore (US$ 1.4 billion) domestic industry. Anticipating the demand for fruit based drinks companies like Coca Cola India and Pepsi launched their fruit drinks back in 2007 with the introduction of Minute Maid and Tropicana Twister respectively. The biggest player in this segment is Parle’s Frooti and there are several other players including Godrej. Another strong brand which has been around for decades in this segment is Maaza
Business Standard recently reported that the segment of non-cola soft drinks in India is reporting a year-on-year growth of close to 30%. The non-carbonated beverage segment is growing at almost double the rate of carbonated beverages in the Rs 7,000 crore (US$ 1.4 billion) domestic industry. Anticipating the demand for fruit based drinks companies like Coca Cola India and Pepsi launched their fruit drinks back in 2007 with the introduction of Minute Maid and Tropicana Twister respectively. The biggest player in this segment is Parle’s Frooti and there are several other players including Godrej. Another strong brand which has been around for decades in this segment is Maaza, which came to Coca Cola when they purchased Thums Up, Limca and Maaza from the Chauhans in 1993-94. The juice and juice based drinks market is estimated at around Rs 1,500 crore (US$ 300 million).
Dabur has established a portfolio in the sweetened and unsweetened packaged fruit juice market in the Rs 75-85 a litre bracket and are now looking to further growth with products at lower prices since non-fizzy fruit based beverages are available for Rs 45-50 a litre. The launch of non-carbonated apple and grape flavoured beverages is expected to give them an entry into this price band.

Price is also an issue for breakfast cereals in the Indian market. Apart from having to compete with the traditional options of fresh fruit and home cooking, the convenience options are finding stiff competition both from multinational players and local manufacturers. Kellogg, for instance, emphasized the crispiness of its cornflakes when it entered the market but when mixed with hot milk, it was no different from local brands apart from its’ impressive packaging and higher price tag. The company played a big stakes-game to come up with new flavours to differentiate their healthy and convenient breakfast option. While the strategy gave Kellogg an edge, pricing still remains an issue.