PepsiCo India aims to double Tropicana business by 2020
The focus on Tropicana comes as part of Pepsico’s global strategy to focus on nutrition and healthier beverages amid falling sales of aerated drinks as consumers shift to healthier drinks
New Delhi: PepsiCo India Holdings Pvt Ltd, the local unit of American food and beverages company PepsiCo Inc., aims to double sales of Tropicana, the flagship brand for its fruit-based beverages, by 2020, Deepika Warrier, vice president (nutrition category), PepsiCo India, said on Thursday.
Tropicana, which was launched in India in 2004 as 100% juice and then extended to other juice-based drinks, generated business of “more than Rs1,000 crore” in 2017, according to the company.
The focus on Tropicana comes as part of the company’s global strategy to focus on nutrition and healthier beverages as it failed to check falling sales of aerated drinks in the past five years as consumers shift to healthier options.
To achieve the target, Warrier said, PepsiCo will expand retail reach by moving deep into smaller markets, reposition the brand with new packaging and campaigns and double marketing spend on television, a medium more relevant for semi-urban and rural markets, this year.
“We’ll aim to make Tropicana available across 250,000 retail outlets, 2.5 times of 100,000 now by the end of this year. From less than 100 towns, Tropicana will be made available across 300 towns. Besides, we’ll utilize our coolers (used primarily for carbonated drinks at retail points) for Tropicana so that it’s sold chilled even in smaller markets,” Warrier said, adding that the company will follow segmented marketing approach for the range. Certain variants of Tropicana will be given priority in certain states, and the company will look at state-specific marketing approach, she said.
PepsiCo has, in January, entered into an agreement with its bottling partner Varun beverages Ltd for distribution of Tropicana juice in North and East India. “Varun Beverages’ contiguous reach will help the brand more than double the distribution reach in these states, with a focus on rest of urban and rural market expansion. For the other regions (south and west) in India, this portfolio of products will ride on the existing PepsiCo go-to-market system for core carbonated beverage in those geographies,” the company said in a statement.
For Tropicana, the company has appointed Hindi film actor Katrina Kaif as brand ambassador. Kaif has been endorsing its mango drink brand Slice for some years. Slice was launched in India in 1993 as a mango drink and rebranded as Tropicana Slice in 2014.
In the 100% juice segment, Tropicana had a 41.5% market share (retail volume) in 2016, up from 40% in 2015. Dabur India’s Real juice leads the market with a 43.5% share, according to data compiled by market research firm Euromonitor International.
Slice, which is considered a regular juice drink, lost market share from 19.4% in 2015 to 18.1% in 2016, while Coca-Cola’s mango drink Maaza gained from 28.8% in 2015 to 29.7% in 2016, Euromonitor added.
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