June 21, 2021
Leading indigenous food company Nilon is trying to enter the market ruled by Pepsi and Coca Cola with the launch its new line of fizzy drinks called the Cheers line.
However, the carbonated beverages segment has got itself a bad name in recent times due to the high sugar content and low nutritional benefit of the products. This is mainly because of the growing awareness around health and nutrition, and ailments like obesity and diabetes.
The trend is essentially making both PepsiCo and Coke to cut down on sugar content, reduce portion sizes and launch sugar-free variants of popular brands like Fanta, Pepsi, Miranda, 7Up, Coca-Cola and Mountain Dew.
Now, it is this trend that Nilon’s is holding its expectation on. The Cheers portfolio puts forth new flavours like kokum, amla, ginger and jeera, while also including the more common lemon and orange variants. Nilon’s claims that its drinks are healthier than the existing alternatives are low on sugar and have more real fruit content.
With less sugar and more fruit on offer, the food brand is trying the health plank to find space in the Pepsi – Coca Cola market. Cheers is being built on top of the health proposition, which isn’t too common in the fizzy beverages category.
Rajheev Agarwal, director and CEO, Nilon’s, says that given the present COVID scenario, the company was working on healthy food ingredients, like amla, jeera, ginger, kokum, etc. We have created fizzy drinks, which have real extracts, unlike other products available in the market. We saw a white space where these products were needed – like, say, in canteens, railways, airlines, etc. We want Cheers to be available as a healthy alternative that people will come back for.”
Now, health has never been on offer in the fizzy drinks market. Most products here are calibrated for fun and joy for the young, and to be occasionally used to wash down fast food.
Agarwal says that the products will be sold across markets. The brand will mainly cater to a young TG, while also appealing to older consumers.
“This is a time when cold beverages will take a back seat, but innovative beverages that can be consumed in ambient temperature will come forward and find favour,” he adds.
Cheers is also the first beverage in Nilon’s product portfolio, meaning, the company now has to set up its beverages distribution chain.
Nilon’s has traditionally refrained from spending too much on advertising. The company has mostly been driven by word of mouth, social media, and its sales and distribution infrastructure.
As the brand re-strategizes for new product launches and looks to newer markets, it is likely to change. Cheers will be presented to the consumers via a TV campaign led by actor Pankaj Tripathi. The message will be a mix of health and taste. Nilon’s will now be allocating 6-7 per cent of its turnover to advertising.