“We Aim To Be A Total Beverage Company With Local Roots”
What is your business strategy going forward?
Coca-Cola India is evolving its business strategy to become a total beverage company with local roots. The goal is to give consumers beverages they want by building a portfolio of ‘consumer-centric brands’. Towards this, the company has adopted a multi-layered approach to match consumer preferences. First, we are expanding our product portfolio and giving more choices to consumers by rolling out new variants across Thums Up, Limca, Fanta, Sprite and Maaza, including no-sugar extension. Second, grassroots efforts through the fruit circular economy initiative has started to make a difference across the Indian agri-economy and will lead to a significant increase in India’s fruit processing capacity. Third, we have expanded our category play by entering new beverage categories — enhanced hydration, nutritious dilutables and beverage-plus at affordable price points. Fourth, as part of our hyper-local strategy, we are advancing the beverage localisation and developing an ethnic beverage portfolio to suit the various regions.
Globally, people are becoming more health conscious and shunning cola drinks for healthier options. How do you plan to address this trend?
I think this concept of health is pretty relative. We offer a wide range of products which are absolutely good and safe. We recognise that different people prefer different beverages that suit their palates and lifestyles. Therefore, as a consumer-centric company, we are broadening our beverage portfolio to bring out products that would meet the varied requirements of our consumers. There are multiple things happening on a consumer basis, whether it’s the desire for more natural, for perhaps less sugar, for functional benefits, nutrition, stimulation etc. We have accelerated our offerings in some of the consumer preferred categories. We will continue to focus on our consumer-centric portfolio. The idea is to have a portfolio and not just a collection of brands. We will therefore carry on offering more options for consumers that want lesser calories in their beverage — we already have Coca-Cola Zero, Diet Coke and Sprite Zero and have recently introduced a sugar-free variant of Thums Up Charged. We have launched beverages that provide nutrition/functional benefits. The launch of Minute Maid range of juices, Minute Maid Vitingo or Aquarius Glucocharge are a case in point.
So what are the key areas of growth?
We are a consumer-centric business, and are responding to evolving consumer tastes and expectations by becoming a total beverage company. There are four clear actionables arising out of the strategy: to strengthen the core; business with socio-economic intersection; to take Indian brands global; and hyper- localise products. Our innovation pipeline includes a range of products which are non-carbonated and also products that are diets and lights versions of our carbonated range. Additionally, we have also added fruit juices to our existing range of carbonated beverages.
Coca-Cola in India is simultaneously working on a transitional journey focused on creating a virtuous fruit circular economy by using a variety of Indian fruits in its beverages. The company, its bottling partners and its fruit suppliers and processors in India will contribute $1.7 billion in the agri-ecosystem of the country over the next five years, spanning the entire supply chain from grove to glass through a unique concept called the fruit circular economy. Close to $900 million of this contribution would be towards the procurement of processed fruit pulp and fruit concentrate for Coca-Cola’s ever increasing portfolio of juice and juice drinks and carbonated drinks with juice products in India and the remaining would be invested towards creating the required infrastructure.
Coca-Cola recently announced it plans to make Thums Up a global brand. Which are the markets you are looking to foray in and by when?
Last year, we announced our vision of Thums Up becoming the first-ever $1 billion cola beverage brand from India by 2020. To accelerate the brand’s journey and celebrate 40 years of Thums Up, Coca-Cola India launched Thums Up Charged, the first ever variant of Thums Up, followed by Thums Up Charged No Sugar. Thums Up Charged has also been launched in Bangladesh with other South West Asian countries including Nepal, Bhutan and Sri Lanka to follow suit. To deepen connect with millennials and youth, the Thums Up Charged No Sugar cans and PET bottles have dawned a new look. It features adaptations of four Avengers, Thor, Iron Man, Hulk and Black Widow.
James Quincey, CEO, Coca-Cola recently said he wants India to be the third-largest market for Coke globally. That’s an ambitious goal given that currently you are at the sixth position. Your comments.
The Indian market has tremendous growth potential and we are working with our partners to leverage this growth. Quincey has reinforced his belief in the Indian market while saying that he would like to see India as the fifth-largest market for the Coca-Cola system in the foreseeable future and in the longer term, amongst the top three markets for Coca-Cola. In order to achieve this, we are taking key steps to offer more beverage choices to our consumers and to stay relevant to the economic and social development of the country.
