The sweltering month of May has spelt dhanda manda for the thandas. Sample this: sales of the major colas (Pepsi and Coke) in India were down by a good 15-17% in the month of April-May, against the same period last year. Is this a harbinger of the impending doom for fizzy colas or just a passing hiccup?
Whether
the pesticide controversy, which created hell for the cola majors a few years ago warned off consumers, or just a fitness wave propelling them toward healthier drinks, the consumer verdict is definitely proving unhealthy for fizzy cola-makers. “Carbonated drinks fall under the social ostracism category, offering nothing on the nutrition platform. Consumers have become health conscious and are certainly going to shun carbonated drinks and shift to more nutritious options,” prophecies FMCG analyst Harish Bijur.
The trend in India is not too different from what is transpiring globally, where rising obesity levels are forcing consumers to shift preferences to non-fizzy healthy drinks. In fact, Coke – that wore the crown of being the world’s most valuable brand for years – was recently dethroned by Microsoft and Google. The beneficiaries of this transition, will of course be the energy drinks, packaged fruit juices, fruit based soft drinks and packaged water, areas where both Coca Cola and PepsiCo are trying to create a stranglehold. If PepsiCo already has fitness water drink Propel and sports drink Gatorade in its kitty, Coke also seems to be on track with its recent acquisition of Glaceau for $4.1 billion. Yet in India, fizzy drinks still remain the highest grosser for both cola majors. And if they want to continue cashing in on their flagship brands, they’ll have to find ways to keep consumer interest alive in the fizzy colas. Wake up ‘thanda’!
For Complete IIPM Article, Click here
Source: IIPM Editorial, 2008
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative
Whether
the pesticide controversy, which created hell for the cola majors a few years ago warned off consumers, or just a fitness wave propelling them toward healthier drinks, the consumer verdict is definitely proving unhealthy for fizzy cola-makers. “Carbonated drinks fall under the social ostracism category, offering nothing on the nutrition platform. Consumers have become health conscious and are certainly going to shun carbonated drinks and shift to more nutritious options,” prophecies FMCG analyst Harish Bijur.The trend in India is not too different from what is transpiring globally, where rising obesity levels are forcing consumers to shift preferences to non-fizzy healthy drinks. In fact, Coke – that wore the crown of being the world’s most valuable brand for years – was recently dethroned by Microsoft and Google. The beneficiaries of this transition, will of course be the energy drinks, packaged fruit juices, fruit based soft drinks and packaged water, areas where both Coca Cola and PepsiCo are trying to create a stranglehold. If PepsiCo already has fitness water drink Propel and sports drink Gatorade in its kitty, Coke also seems to be on track with its recent acquisition of Glaceau for $4.1 billion. Yet in India, fizzy drinks still remain the highest grosser for both cola majors. And if they want to continue cashing in on their flagship brands, they’ll have to find ways to keep consumer interest alive in the fizzy colas. Wake up ‘thanda’!
For Complete IIPM Article, Click here
Source: IIPM Editorial, 2008
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative
