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Hot & Cold: PepsiCo sets the ball rolling with HLL tie-up

27-March-2004
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Hot & Cold: PepsiCo sets the ball rolling with HLL tie-up

PepsiCo India has formally kicked off its strategic alliance with Hindustan Lever Limited (HLL) by test marketing latter’s Lipton brand of tea and Bru coffee through a vending format in Delhi.

The alliance was formed to jointly market a full range of Hindustan Lever Limited’s hot beverages and soft drinks from Pepsi’s portfolio in 2002.

“We have begun test marketing tea and coffee through vending machines in Delhi. This is a joint venture with HLL, wherein we will provide them Aquafina water and vending machines, while HLL will give us the technology,” executive director Pepsi Foods Subroto Chattopadhyay said soon after announcing the association of Pepsi’s juice brand Tropicana with the international jumping competition organised by the Indian Army.

The alliance allows the two FMCG giants to market a unified portfolio through a combined fountain, vending and institutional initiative. The alliance will make available leading brands of the two companies — Lipton, Taj Mahal, Bru, Pepsi Cola, 7Up, Mirinda and other carbonated soft drinks.

Mean-while, the soft drinks major is also evaluating whether to launch other non-carbonated products from its global portfolio. Among the products being considered for a possible launch are sports drink ‘Gatorade’ and more juice blends specifically targeted at children.

“Juice is an area where a lot can be done. For example, we could have smoothies (which have yogurt as well as juice) and other juice-based drinks. We are evaluating these options but nothing has been decided as yet,” he said, adding two new juice blends will hit the market next month.

Meanwhile, Mr Chatop-adhyay, who heads PepsiCo’s new business division said that they are actively looking at sourcing and/or contract farming of fruits like apples, pineapples, grapes and litchi from various parts of the country as a move towards backward integration.

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