New Delhi, July 10: In a bid to compete with the popularity of local brands in India, world’s largest beverage maker, Coca-Cola has now decided to launch a new category of aerated drinks called Kinley Flavors which would include Indian flavours. Seeing the growing demand for regional frizzy drinks, Coca-Cola is now all set to launch new Indian flavours like ‘jeera’ (cumin), lemon and orange in the Indian market. The new Kinley Flavors would be 35-40% cheaper than its own existing range of fizzy drinks, including Coke, Sprite and Fanta.Also Read - Viral Video: 2 Honeybees Work Together to Open a Fanta Bottle, Internet Can't Bee-live It | Watch
According to a report by Economic Times, there are more than 200 B brands across small geographic areas that have got popular at prices that are almost half that charged by the MNCs. As per industry estimates, the regional drinks now have a consolidated share of over 12 per cent of the Rs 22,000-crore packaged aerated drinks category, the report further added. Also Read - Women Shouldn't Feel Like Second-Class Citizens, They Have Arrived, Says Indra Nooyi
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The regional brands are doing really good in the Indian markets as they are cheap and affordable. This has driven the aerated drinks market in India to another level. To compete with the growing demand and popularity of these regional frizzy drinks, the soft drink giant is forced to launch its new category of drinks that will be priced at a lower rate as compared to other drinks.
What will be the cost of the new variants?
Coca-Cola’s new variants are expected to be 35-40% cheaper than its existing frizzy brands Sprite and Fanta. A report by Business World quoted Euromonitor International on March 30 informed that the country’s $4.9 billion soda market was dominated by Coca-Cola and Pepsi with 96% combined presence.
A Coca-Cola spokesperson was quoted by Economic Times saying that Coca-Cola has developed a new value-based proposition for price-conscious consumers in aerated beverages. “These new launches will be available in 250ml PET packs at attractive price points. We are doing pilots in select markets and will expand over time”, he further added.
It has been mentioned in reports that both Coca-Cola and PepsiCo set up specialised teams last year to monitor regional brands. A few months ago, PepsiCo had said that it was stepping up consumer engagement across markets to counter competition at different price points. Aerated drinks have been taxed at an effective rate of 40 percent under the new indirect tax regime-The Goods and Service Tax (GST).
As GST kicked in on July 1, Coco Cola said that prices of its aerated drinks will go up while those of packaged drinking water brand Kinley will see a significant drop. The company spokesperson was quoted by Economic Times saying that in spite of higher GST rates for the aerated beverages, certainty in tax regime provides us with an opportunity to meaningfully expand our portfolio, catering to all consumer segments.