One is the undisputed distribution king and the other an inveterate price warrior. As the cool February weather makes way for the warmth of March and the blistering heat of April and May, the two — Hindustan Unilever and Reliance Consumer —are looking to shake up a largely humdrum market with two new offerings. HUL’s Liquid IV is an electrolyte drink in powder format targeting the affluent at Rs 120 a stick (Rs 360 for a pack of three sticks); while Reliance Consumer’s Spinner is a sports drink for the masses priced at Rs 10 a bottle.
Needless to say, their pitches are different — while the former aims to bridge the gap between hydration and overall wellness, the latter hopes to democratise the sports drink category. Ergo, they are completely different products going after two different consumer cohorts. But they sit in one broad category — the $1.2-billion domestic hydration market. “Hydration drinks are different from colas and carbonated beverages in terms of the added benefits they offer to consumers apart from quenching thirst. The space is evolving,” says Ankur Bisen, senior partner and head, consumer and retail practice, Technopak Advisors.
Growing at around 12-15% per annum, the domestic hydration category includes everything from simple electrolyte drinks available at local pharmacies and chemists’ shops to advanced hydration solutions targeted at those with an active lifestyle to sports and energy drinks for those wanting to stimulate themselves after a hard day’s work. But the category is not sharply defined yet, say experts, complicating the pitch for even seasoned marketers such as HUL and Reliance. They have to contend with competition from a wide range of players including fast-moving consumer goods giants such as PepsiCo (Gatorade), Coca-Cola (Limca Sportz), Dabur (Glucose D and Glucoplus C) and Tata Consumer (Gluco+) to healthcare majors such as Cipla Health and Himalaya Wellness, blurring the lines for consumers.
There is also the added layer of regulation, Naveen Malpani, partner and consumer industry leader, Grant Thornton Bharat, says. “Hydration is a category that deals with nutrition. So, what goes into a product is something that both consumers and regulators will pay attention to,” he says.
The Food Safety and Standards Authority of India has brought energy drinks under greater scrutiny in recent years as category adoption has improved, while the broader hydration category itself has come under check from time to time with social media influencers, doctors and health experts calling out product claims.
HUL’s ED, Beauty & Wellbeing Harman Dhillon argues that is where products such as Liquid IV stand out. “The Indian market is witnessing a shift from caffeine-laden energy drinks and artificial sweeteners towards healthier hydration options. Affluent consumers are realising what they ingest determines the health of their skin and hair. They are making careful choices,” she says.
The market HUL is after with Liquid IV, Dhillon says, is a 70-million-strong consumer category that is increasingly seeking solutions that can support or enhance their active lifestyles. “If you look at skincare or hair care trends, there is a surge in conversations around hydration. Liquid IV is being introduced to cater to this growing demand. With its optimised ratio of glucose, sodium, and potassium, it provides faster hydration than water alone,” she adds.
For his part, Reliance Consumer’s COO Ketan Mody says consumers deserve access to quality products that can elevate their lives. “With Spinner, we’ve created an affordable and effective hydration solution that can be enjoyed by everyone,” he says.
At a disruptive price of Rs 10 a bottle, Mody argues that Reliance is looking to do in the estimated Rs 240-crore sports drinks what it has done across categories — from telecom to media to FMCG — reduce entry barriers and give more people the chance to sample products.
Both HUL and Reliance are padding up for the season. Dhillon says that Liquid IV, available in three flavours (Lemon Lime, Brazilian Orange, Açaí Berry) will have a digital-first approach. The focus will be on metros and Tier 1 cities of India to begin with.
Mody, meanwhile, says that in keeping with its policy of “democratising” categories, Spinner, which has been co-created with cricketer Muttiah Murlitharan, will be available in both online and offline trade channels. Spinner is being bottled at Muttiah Beverages’ plant in Mysore, which also bottles Campa soft drinks, according to industry sources. Reliance Consumer has also tied up with IPL teams Lucknow Super Giants, SunRisers Hyderabad, Punjab Kings, Gujarat Titans and Mumbai Indians to drive awareness and increase brand visibility of Spinner nationwide.