Pepsico to enter Indias vegetable juices market

Written by Simran Arora | New Delhi, Mar 28 | Updated: Mar 30 2008, 05:08am hrs
With a view to further tap the Rs 1,200-crore juice and juice-based drinks segment, cola major Pepsico India is looking at launching vegetable-based drinks in the market.

Development, including blending, is going on at our R&D centre in Gurgaon, where people are also getting to taste the products, a highly-placed company official told FE.

The blended fruit and vegetable juices have a good market overseas with people having great appeal for such juices and we are optimistic that the blended juices would do good business in India also, the official added. Shifting of focus to juice and juice-based drinks segment, which is growing at rate of 18-20%, is an exercise the carbonated drinks major has been doing for quite sometime now as part of a strategy to emerge as a company focused on health issues.

The company, however, refused to give details about the blended juices in terms of flavours and the time when they were likely to hit the market.

The work is still going on and it is too early to comment on this, the company official added.

The vegetable juice market in the country is currently dominated by homegrown beverage major Dabur, which entered into the segment in 2003. The company has a range of fruit-veggie juices and veggie juices under the Activ brand. The fruit-vegetable blend juices range includes orange-carrot, mixed fruit-beetroot-carrot and mixed fruit-cucumber-spinach. The company last year expanded this range and introduced carrot and mixed vegetable juices. Pepsico, however, refused to divulge new flavours it was planning to launch in fruit-veggie juices segment.

Dabur, the market leader in the juice segment with 50% market share, offers two brands Real and Activ.

The company's juice brands are performing very well in the market and have shown a growth of over 20% this year, said a company official.