We all love our Coca-Cola (if you’re a PepsiCo fan you can substitute soft drinks) right? Turns out, that may not be the case with everyone. Small regional companies are eating into Coca-Cola’s market share and making life difficult for the soft drinks giant. Add to that the GST Bill hike in prices and they’ve got a problem on their hands!
Coca-Cola’s solution? Launch a range of cheaper soft drinks (or aerated beverages, for the posh ones) in order to give the smaller companies some competition (never thought we’d see that day).
According to ETRetail, about 50 regional brands, sell at prices that are 20% cheaper than Coca-Cola’s prices. In addition to that, they have garnered more than a 15% market share in the carbonated drinks category. Local players such as Torino, Bovonto, Xalta, Jayanti Beverages and City Cola have made inroads into semi-urban and rural markets.
Looks like a mad dash to retain profit doesn’t it? Let’s see if it pays off in the end – only time will tell!