Leading beverage makers are strengthening their affordability play in the aerated beverage segment while ramping up distribution, as they hope to garner stronger growth rates this summer season. The stronger focus on popular price points also comes at a time when entry of new players has intensified competition. As per estimates by CRISIL Ratings, soft drinks bottlers are poised to garner 15 per cent revenue growth in this fiscal, driven by hotter summers and rising penetration after subdued growth last fiscal.
In its global Q1 earnings call, beverage major Coca-Cola said that it is focusing on driving “affordability” and growing rural reach in the India market. Sundeep Bajoria, Vice President, Coca-Cola India and Southwest Asia told businessline, “In India, we are focused on shaping a beverage portfolio that offers meaningful choices across varying needs and occasions. Our ambition is to be within arm’s reach of desire for our consumers, ensuring our beverages are both easily available and affordable. Through single-serve and multi-serve entry packs, we expand access and everyday relevance, while premiumising select elements of our portfolio to elevate consumer experiences on special moments and occasions.”
PepsiCo has also expanded its affordable offerings this summer season. Nitin Bhandari, VP and GM – Beverages, PepsiCo India and South Asia, “Value and affordability remain key factors when it comes to on the go, out of home hydration choices. This season, consumers can enjoy our latest innovation under Nimbooz – locally inspired flavours like Rosey Twist, Orangey Twist and Lemony Masala Twist, priced at Rs10. At the same time, our iconic brands like Pepsi and 7UP are also available at ₹10 packs across various regions.”
PepsiCo’s leading bottler, Varun Beverages said that as part of its strategy to ramp up distribution, it plans to add nearly half a million additional outlets this year.
CRISIL Ratings in its recent report noted that the competitive landscape is heating up in the soft drinks sector with new entrants launching products at popular price points. “As a result, their market share has increased to an estimated 6-7 per cent last fiscal, from about 2 per ent in FY2024,” it added.
Saurabh Munjal, Co-Founder and CEO, Archian Foods, known for Lahori Zeera said, “Popular price points such as ₹10 remain highly relevant because it enables mass trials, impulse consumption and everyday habit formation. Brands that combine taste, trust and consistency at accessible price points will continue to win. As far as summer growth is concerned, demand is fundamentally strong.”