PepsiCo India is all set to embark on the health wagon, with the company looking at healthier options to boost sales in the country. With fizzy drinks like Pepsi seeing slower growth compared to non-carbonated drinks, PepsiCo India’s senior VP (beverages) Vipul Prakash is turning his attention towards the dairy industry.
Rival Coca Cola had embarked on a similar venture last year, launching ready-to-drink flavoured milk under the VIO brand. Available in two flavours, Almond Delight and Kesar Treat, these drinks, however, failed to make a mark in the segment.
PepsiCo, learning from the mistakes of its competitor aims to add products in addition to flavoured milk. While details about the complete product list is yet to be announced, it could look at products like lassi and buttermilk, which have become even more popular with the onset of summer.
Diary-based health drinks have seen a growth of 30 per cent over the period between June 2014 and June 2016, while the soft drink industry has seen a third of this growth in the same period.
In addition to dairy based drinks, PepsiCo will also cut down the sugar content in its current product line. While the new 7UP will have 30 per cent less sugar, Pepsi Black will have no sugar at all. PepsiCo will launch Pepsi Black in cans initially, aiming to counter the growth of Coke Zero.
PepsiCo India has a line-up of over 20 items including Mirinda, Tropicana, Gatorade, Lays, Quaker Oats, etc., with over 2 lakh individuals directly or indirectly participating in the employment chain. It currently has 38 bottling plants in India, in addition to three food plants.