After a flat performance in 2001, soft-drink majors have reported a strong performace during April and May. While Pepsi has clocked a good double-digit growth in April and first three weeks of May, Coca-Cola has clocked a growth of over 40 per cent growth during this period.
According to industry sources, the phenomenal growth has been achieved owing to a host of reasons, including the 200 ml foray which has driven volumes especially in the rural areas, greater penetration of pet bottles and new products in the case of Pepsi.
According to Pepsi, the growth has been achieved because of new products including Pepsi Aha which has been received well in the market and whose value turnover has crossed the Rs 40 crore mark, major focus on 7-Up and all the other brands also doing well.
The growth at Coca-Cola has also been driven by the marketing initiatives along with the rural and the Pet bottle thrust and its foray in the 200 ml segment.
Both the soft drink majors had earlier decided to sell its carbonated products at an aggressive price of Rs 5 to Rs 7 for a 200 ml bottle in order to boost stagnating volumes.
Increased growth, however, does not mean a direct growth in the bottomline as well. An industry analyst said whether the growth translates into improved margins depends on the price at which the two companies are selling at various locations.
Source: Business Standard