With demand for carbonated soft drinks falling, PepsiCo is shifting focus to value-added packaged water. To begin with, it has launched two vitamin-fortified flavoured drinks — a category it hopes will grow faster in the coming years.
Vipul Prakash, senior vice-president, beverage category, PepsiCo India, says the category, a little over Rs 10,000 crore in size, is the fastest growing among all categories of beverages.
However, almost 99 per cent of the sales are from the drinking water segment — without any value addition. “We believe over the next three to five years, this is going to be the most significant segment,” Prakash said.
He added: “Value-added dairy, hydration, and juices are the three growing categories now. Any beverage company that wants to be successful in India has to play in all three product segments. Thus, we have taken a big bet on the category.”
Source: PepsiCo bets on value-added water; launches vitamin-fortified drinks | Business Standard News