Coca-Cola India said its homegrown mango drink Maaza is set to become a billion-dollar brand in the next two years and is not worried about the entry of new players such as Reliance Retail in the carbonated beverages market.
The statement comes after the company’s brands Thums Up and Sprite achieved the billion-dollar revenue generating mark.
“It (Maaza) is expected to touch the (billion-dollar) mark by 2024, but if it does so in 2023, then that would be a bonus,” Moneycontrol quoted Coca-Cola India and Southwest Asia President Sanket Ray as saying.
In its Q3 2022 global results, Coca-Cola had said that Sprite has grown to become a billion-dollar brand in India.
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“(Revenue from) Maaza will be around Rs 4.500-5,000 crore this year. It is in line to be a billion-dollar (around Rs 8,000 crore) brand soon. This year, we are facing pressure from higher mango prices,” Ray added.
Ray further said the company intends to diversify its sourcing within India for mangoes.
Maaza was acquired by The Coca-Cola Company from Ramesh Chauhan of Parle Bisleri in 1993.
At present, the company has a range of over 20 products in India spanning everything from sparkling drinks, to coffee, juices, water and milk-based beverages.
Ray did not divulge any plans to hike price points but said there is a pressure from inflation and currency depreciation.
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“Our affordable options (Rs 10-20) are not facing any pressure. However, larger volume packs are facing price pressures. Currently, there is a double-whammy of inflation and currency depreciation.”
Meanwhile, the company is pushing its small-pack strategy to grow household penetration.
Adding the company will focus on bringing in new products, he exuded confidence that the rural market will bounce back.
On the entry of big companies such as Reliance Retail and Tata Consumer Products Ltd (TCPL) in the beverages segment, Ray said it is positive and will only help the category to expand.
He, however, said their entry can result in "some disruptions at the local level" leading to consolidation, but pricing will not be a game changer.
"This category penetration is one of the lowest in FMCG. Coke and Pepsi do not have enough budget to get into that," news agency PTI quoted him as saying.
Recently, Reliance Retail had acquired home-grown brand Campa Cola signalling its intention to enter the soft drinks market in India. Besides, TCPL is expanding its presence in the beverages market.
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