Feb 15, 2021
Top beverages companies are gearing for some big launches in the summer of 2021 as consumption in the sector is increasing. This sector was one of the first to be impacted by the pandemic and lockdowns.
PepsiCo will present India, the global power brand Mountain Dew Ice in a cloudy lemon format in the while Bisleri is re-introducing three fizzy drinks – mango-based Fonzo, Spyci cola, and Limonata with juice content.
Clear-lime Mountain Dew is PepsiCo’s fastest-growing brand in India with sales of over Rs. 4,000 crore. With Mountain Dew Ice, the soda maker is entering the cloudy lemon segment where arch-rival Coca-Cola’s Limca is the market leader.
Mountain Dew Ice is being introduced in the cloudy lemon format for the first time globally in India and it has 5% lemon juice content, an executive with direct knowledge of the developments. This is the first new soft drinks category launch, post franchising of PepsiCo’s bottling operations to Varun Beverages, the executive said.
Bisleri, which leads the packaged water category, has reverted to pre-Covid sales in retail channels, though institutional sales continue to be impacted with a majority of offices and schools still shut, consumption is expected to be robust in the upcoming season, with the opening up of all out-of-home sectors.
Industry experts said the new launches, backed by heavy ad spends, are in expectation of robust sales in the upcoming summer with tourism services, eating out and cinemas reopening. Also reopening of restaurants and cinemas is expected to drive gradual recovery for on-premise consumption, in-home consumption will likely remain the key growth driver.
Minimal lockdown disruptions and reverse migration had led to an acceleration of demand for soft drinks in semi-urban and rural markets in the September quarter, while in the October-December quarter, urban demand also picked up led by higher in-home consumption and a gradual pickup in travel services and dining out.
On-premise consumption is likely to remain somewhat depressed, but hopefully balanced with continued higher in-home consumption. Consumption this season should revert to normalcy, partly also because of the low base effect.
The packaged beverages industry’s annual sales are estimated at over Rs 28,000 crore, with the lemon and lime-based segment contributing more than 50% of the carbonated soft drinks space.