Before Pepsi and Coca-Cola entered the Indian market, Rasna was the preferred beverage. It was also one of the top marketers on Doordarshan, and its classic ‘I love you Rasna’ commercial, which featured a little girl, still evokes strong memories in the minds of consumers. Will the brand be able to recreate the same enchantment with the new ‘Indie Cola’ drink? Time will tell.
Pioma Industries, the producer of famous SDC brand Rasna, is preparing to introduce a ‘Indie Cola’ brand to compete with major cola brands like as Pepsi, Coca-Cola, and Thumbs Up.
The business has engaged three franchisees to manufacture the product, which is now being tested in Maharashtra, Gujarat, and Bengaluru. It was planning a foray by the summer. However, the second wave of COVID-19 threw a wrench in its preparations. It intends to launch the product across the remainder of the country within a month. Full-fledged marketing efforts would begin in the summer of next year.
“There is a huge opportunity for an Indian cola, made for India, by India, in the country,” Piruz Khambatta, CMD, Pioma Industries said.
According to Khambatta, international cola producers gain a lot of money in the form of royalties and franchise fees, but given the product’s basic formulation, it can also be manufactured in India.
He adds, however, that a product will not sell just because it is “made in India”; it must also deliver on quality. “As a result, we have ensured that the product is free of hazardous chemicals commonly found in cola drinks and is created from genuine fruit.”
Given its health benefits, the firm would charge a little higher premium for the beverage, with a 1-litre bottle costing around Rs. 65, compared to the 1.25-litre Coca-Cola, which costs Rs. 65.
The business will initially offer the product through general trade in rural areas before expanding to contemporary trade and e-commerce platforms in major cities and towns.
Consider this: according to Statista, the market for soft drinks (including carbonated drinks) is now worth more than Rs. 26,000 crore. According to industry estimates, the market for soft drink concentrates is worth Rs. 1,260 crore. According to a Crisil research, PepsiCo and The Coca-Cola Company have a combined 80 percent market share in the non-alcoholic beverages industry through its brands such as Coca-Cola, Fanta, Tropicana, Mountain Dew, Pepsi, Thumbs Up, Sprite, Minute Maid, and others.
The SDC market, on the other hand, is still expanding, and Rasna remains the market leader. Today, the firm controls more than 22% of the SDC market in terms of volume and 42% in terms of value. Other important competitors in the category are Hamdard Wakf Laboratories with Rooh Afza and HUL with Kissan (as shown below).