While Coca-Cola India said it was too early to comment on the implications of the buyout, Pepsi put up a brave face by saying: "It will have no impact here."

Cadbury Schweppes Beverages India managing director Ashok Jain said his company, a 100 per cent subsidiary, would push the brands till mid-1999, which is when the deal would be concluded. Cadbury Schweppes will continue to compete with Coca-Cola locally, he said.

Coca-Cola's acquisition also gives rise to speculations over how the company will position its expanding portfolio in the country: it will own three cola and two orange brands. The only value-addition will come from Canada Dry, which Coca-Cola will have to build on its own strengths.

The launch of Dr Pepper, the much-awaited non-cola drink from the Schweppes stable, which is hanging fire for almost two years still remains uncertain, industry sources pointed out.

The deal, say industry-watchers, may augur well for the Cadbury Schweppes brands in the country, which are languishing after having failed to garner volumes. Points out marketing consultant Jagdeep Kapoor, "Coca-Cola will have to do a clean-up job and re-launch the Schweppes brands if it wishes to revive them."

Industry sources also do not rule out the possibility of a reverse act, meaning Coke will initially push its own brands while the Schweppes brands are left to gather dust.

"With the visibility of the Coca-Cola brands having gone up tremendously in the recent past after it changed its advertising agency which launched the new ethnic campaigns, the same is also be true for the Schweppes brands which are thirsting for better strategic decisions to perk them up," says Kapoor.

The product portfolio of Coca-Cola in the country will expand with an entry into niche segments with the internationally strong brands like Crush and Canada Dry. Some industry analysts are of the opinion that the Schweppes brands, instead of complimenting the Coca-Cola brands in the respective portfolios, will, in effect, be pitted against them. For instance, Crush may compete with Fanta.

While Fanta, which was earlier waging a lone battle with Pepsi's Mirinda, will now be armed with Crush in tow.

The possibility that brands like Sport Cola, locally built by Cadbury Schweppes to gain better entry into the retail channel, being discontinued is also being talked about.

Since the deal will be accomplished by mid-1999, the Summer of 1999, may not actually see any major impact as far as future indications on Coca-Cola's strategies for the Schweppes brands go. It will be only in 2000 that a clear picture on the final portfolio of Coca-Cola's strong brands in the country will emerge.

Kapoor says: "Cola companies are slowly realising that the best way to grow is to expand the portfolio to non-cola products. Pepsi's recent move to acquire Tropicana, and now Coke's decision is an indication on this score. With the Cadbury Schweppes brands now coming into its fold, Coca-Cola will get a good hold in the niche segments."