Pepsi and Hindustan Lever Ltd (HLL) have announced the creation of Pepsi Lipton alliance that pools the companies’ respective strengths to market, sell and distribute Lipton ready-to-drink (RTD) teas and tea-based beverages. Pepsi India Holdings Pvt Ltd chairman Rajeev Bakshi said, “We are creating common vision and synergies together. The alliance will enable both companies to leverage its extensive manufacturing, sales and distribution network and marketing strengths.”
HLL chairman MS Banga added, “We have strong presence in developing markets, but there is plenty of ‘white space’ to move into and we see Pepsi as the ally of choice to achieve this.”
A strategic alliance to market a full range of hot beverages and soft drinks through a vending format already exists between the two since 2002. The new arrangement will augment Pepsi’s portfolio of refreshment beverages and complementing brands such as Tropicana and Aquafina. It will also advance Lipton’s leading position in the Indian RTD tea market, a fast-growing beverage category.
The alliance in India will build upon the success of Pepsi-Lipton Tea Partnership in United States as well as Pepsi Lipton International JV formed in October 2003 for select international markets.
The creation of Pepsi Lipton alliance in India is in line with HLL’s “Path to Growth” strategy, its move into new channels and its drive into new categories for future growth.
According to Mr Banga the new alliance marks a significant step in the expansion of Lipton brand bringing it within the reach of millions of new consumers.