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Coca-Cola and P&G global alliance won't have much impact on India

22-February-2001
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Coca-Cola and P&G global alliance won't have much impact on India

The impact on India of the global joint venture company formed by Coca-Cola and Procter & Gamble (P&G) appears to be blurred at the outset. Moreover, the only product present in Indian markets from the portfolio that the proposed joint venture company will deal in, is P&G's Pringles.

Coca-Cola India does not see the new global alliance having any impact on its India operations, it does not rule out any future possibilities of this happening either.

Significantly, the formation of the new company fits in well with its new thrust wherein Coca-Cola has decided to align itself with the company's new worldwide focus on non-alcoholic commercial beverages market.

From the Coca-Cola stable, the new enterprise announced today, will have the following brands: Minute Maid, Hi-C, Five-Alive, Fruitopia, Cappy, Kapo, Sonfil and Qoo. None of them, incidentally, are present in India.

However, Coca-Cola may be a little hesitant to launch new brands here, for the company is currently broadening its marketing focus from the Coke brand to explore the potential of its other acquired brands.

Taking a cue from its Thums Up experience, the company has realised that its homegrown brands are too strong to be ignored. Despite having a 100 per cent fruit juice brand in its global brand portfolio - Minute Maid - the company is banking on Maaza.

At a recent meeting, Coca-Cola CEO Alex von Behr stated that the multinational may not launch more brands in the country due to the high costs involved and added that new products were likely to be launched under existing brand names.

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