Beverage makers gear up for a long summer spell

The likelihood of a fairly long summer is bringing cheer to beverage makers. While March was relatively cool, with rain, hailstorms and even snow in some parts of the country, April and May are likely to be hotter.

What is also buoying the sentiment is the possibility of the El Niño weather phenomenon, implying the monsoon might be hit. This will lead to brisk business for beverage companies.

El Niño effect forecast

Forecasters from Australia, China, Korea and the US have already issued warnings related to the El Niño.

However, the India Meteorological Department is yet to issue any such warning.

Dhirendra Singh, chairman & managing director, Manpasand Beverages, the maker of Mango Sip, says, "The heat has set in the West and South, with people beginning to perspire and feel hot. Therefore, they want cool drinks. I hope by April 8-10, it will get hotter in other parts of the country.”

Manpasand expects 20-30 per cent growth in sales this summer. Most other beverage makers, including Parle Agro, makers of the Frooti and Appy beverage brands, also expect similar growth.

Strategy

"This season, our beverage marketing strategy will be focused on growing the equity of our brands, while driving consumption in different ways. The Indian Premier League will be the anchor of our plans and we will be leveraging it extensively in online and offline media. Additionally, we will also leverage occasions such as election gatherings to drive consumption for our snacks and beverage brands,” said a PepsiCo spokesperson.

Both PepsiCo and Coca-Cola have started aggressively pushing their products on TV.

Both companies have refurbished their campaigns for the Pepsi and Coke brands — while the latter had introduced Bollywood stars Deepika Padukone and Farhan Akhtar as new endorsers, Pepsi has changed its visual identity.

Typically, beverage companies come up with new product formats in the summer.

Nadia Chauhan, chief marketing offer and joint managing director, Parle Agro, says, "This summer, we are introducing Frooti and Appy in 250-ml tetra packs, priced at Rs 15. The objective is to complete the tetra pack portfolio to provide wholesome beverage offerings at various price points to consumers. At Rs 5, Frooti and Appy triangular tetra packs have been a big hit with consumers. This season, we will promote these packs in rural areas.”

This summer, Parle Agro would also roll out its coffee-flavoured fizzy drink Cafe Cuba across the country, Chauhan said.

Beefing up old portfolio

In contrast, Dabur is beefing up its juice portfolio, launching innovative flavours such as a packaged coconut water under Real Activ. Together, Dabur's Real and Real Activ range account for 55 per cent of the juice market, say Dabur executives. PepsiCo's Tropicana range comes second, with an estimated share of about 35 per cent. Kraft, the maker of powdered beverage drink Tang, recently launched a 125g to strengthen its portfolio, which comprises 750-g, 500-g and 19-g packs. Tang's 19-, 500- and 750-g packs are priced at Rs 5, Rs 105 and Rs 145, respectively. To promote the drink, the company is offering free mixers with its packs.