The Hindu Business Line : Juice wars break out as consumers look for healthier beverages

New Delhi, July 16 With the growing demand for healthier beverages, Tropicana, PepsiCo’s juice brand, has expanded its ‘Tropicana 100%’ portfolio with the launch of a new mixed fruit variant.

This also puts it in direct competition with Dabur’s Real Activ brand, which claims to address the health needs of consumers.

Dabur already has an edge in the unsweetened 100 per cent juice segment, with 10 variants in the market.

“Real Activ has a 55 per cent market share in the unsweetened juice market, our focussed communication with this brand, highlighting its health benefits, has seen it report a strong growth of over 20 per cent,” said Mr K.K. Chutani, Marketing Head, Dabur’s Foods Division.

Mr Homi Battiwalla, Business Head, Juice & Juice Drinks, PepsiCo India, said, “We have focussed our efforts behind ‘Tropicana 100%’ which offers complete juice nutrition to consumers.

“In 2009 one of our key initiatives is to widen the 100% range which we have done by our newest launch.”

Health conscious consumers

Mr Battiwalla also noted that consumers are now becoming more health conscious and looking at healthier drinks.

“Carbonated beverages are and will be popular with consumers. Having said that, it is also important to see that there are a host of beverage options available.

“The discerning consumer is looking at a wide array of choices and varied taste experiences that offer nourishment, indulgence and excitement,” he added.

Interestingly, ‘Tropicana 100%’ also got an endorsement from the Indian Medical Association last year. Dabur too, has certifications from Protein Foods and Nutrition Development Association of India.

North looking good

The juice industry, growing at about 15-20 per cent per year, is seeing tough competition amongst leading brands. North India sales have driven the growth for Tropicana according to Mr Battiwalla.

North India is also the market where Dabur has seen strongest sales.

Stepping up investment

In fact, according to Mr Chutani, Delhi is their single largest market, “Delhi alone accounts for 20 per cent of our packaged juice sales”, he said.

With PepsiCo continuing to focus on their growing juice segment by stepping up investment, the juice wars are set to sizzle.

While he did not give exact figures, Mr Battiwalla said, “PepsiCo India recently announced investment of Rs 1,000 crore in its beverage segment this year and a sizeable amount of investment will go into our high growth juice and juice drink portfolio.”

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