Cola Wars
How big is the market?
As per various estimates, the `aerated’ soft drinks market in India is somewhere around 80 million crates per annum. Though seemingly impressive in isolation, the figure is pittance comparing the annual consumption in India and USA- 3 bottles per capita to 300 bottles per capita respectively.
According to a survey conducted by IMRB the total share of aerated, beverages in the soft drinks market is 66%. The remaining 34% is cornered by tetra pack drinks and other local products.
In the aerated beverages segment, 24% share is held by Cola drinks, 19% by plain soda, 17% by mango based flavours, 9% by orange based, 20% by lime-based and the remaining 11% by others. Though these percentages are estimated on a nation-wide basis, regional preferences vary sharply. For instance, cola based drinks are preferred in Delhi, Calcutta and Ahmedabad, whereas lime based beverages are preferred in Bombay and Kanpur.
The market shares
Before the entry of Pepsi, with live national (thums Up, Gold Spot, Limca, Citra, Maaza) and two regional (Rim Jhim, Kismet) brands, Parle Exports and their sister concerns were numero-uno with over 60% of the market captured. A distant second is Campa Cola of Pure Drinks, which is more popular in northern India.
Even more than the aerated beverages, in the tetra pack market, there is a virtual monopoly of Parle beverages with over 90% of the market share safely under their belt with Frooti and Appy.
B.V.O.
For the soft drinks manufactures of the country, these three letters B.V.O. (Brominated vegetable Oil) had almost become a nightmare threatening all peace and prosperity. It is the substance which produces the `Cloudy’ effect in citrus based drinks. In 1988, on the basis of some obnoxious research, the Govt concluded that BVO can cause cancer, hence it ought to be banned. The entire industry was caught dumb founded, and plead to the powers- that – be for two years period to look for alternates to this substance. Incidentally, in the United States, where the beverages market is much larger and the food-drug authorities are much more vigilant and cautious, BVO is being used and no diseases have been reported .The only people to have gained from this controversy seem to be the tetra-pack drink manufacturers.