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Vol. 9, Issue 06 - November - 2016
BEVERAGE NEWS
Parle Agro brings ‘the Frooti life’ to billboards
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o make the consumers Live The Frooti Life Parle Agro India has come out with a massive out of home campaign of its flagship brand Frooti introduced by the company in 1985.
The objective of the campaign was to create a high visibility and impact for Frooti in the OOH space. Targeted at audience aged between 15-35 years, the campaign is centre on a deep understanding of the consumers, derived from primary research (OCS), patented analytical tools (PRISM) and accumulated knowledge. Posterscope zeroed in on strategic locations to reach the core TG and create maximum impact. Building on the brief, Posterscope India crafted a campaign that resulted in a media mix, delivering both impact and reach. The media formats used for impact were billboards, bus shelters, mall media, gantries, unipoles, bus wraps, utilities,
pillars, mobile vans and so on. In an attempt to create impact, multiple creatives are being used across cities. Every creative invariably has been highlighting the ‘live the Frooti life’ concept. The campaign has been executed in 160 plus cities that include the top eight metros, tier one and two cities. Nadia Chauhan, JMD and CMO, Parle Agro, said, “OOH has played an important role in delivering the communication objectives of the Live The Frooti Life campaign. The medium enabled us to leverage the strongest part of our creative assets; the brand’s visual identity. Posterscope has aligned with our brand strategy ensuring our campaigns achieve maximum impact.” Haresh Nayak, Regional Director, Posterscope, APAC, said, “The Frooti story is built on an enormous legacy. And therefore, the crafting of any campaign for this product has to match up to that legacy that Frooti brings along. We have been servicing this client since 2013 and every campaign that we have built for them has led us to rethink each and every tested strategy and create something novel, new and authentic. Frooti challenges us at every step and the struggle that we go through to live up to that challenge only helps us create a better version of Posterscope through every new campaign.”
PepsiCo on path for better-foryou drinks by acquiring KeVit
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epsiCo has been diversifying beyond soda in recent years, including expanding its Naked line into the fast-growing coldpressed juices category. PepsiCo also already expressed interest in probiotics with the debut of Tropicana Essentials Probiotics, which the company announced last month. Healthy foods and beverages have been key to growth for PepsiCo in its most recent earnings report. KeVita's portfolio of sparkling probiotics, master brew kombucha and vinegar tonics center on the purported health benefits of probiotics. Probiotics have been a key trend in functional food and beverages in recent years because of their potential impact on digestive and immune health, though some experts question those health benefits. PepsiCo will move forward with a deal to acquire probiotics beverage manufacturer KeVita, in which PepsiCo already owns a minority stake and distribution deal. This deal would be the first acquisition under PepsiCo's venture arm Naked Emerging Brands, which is tasked with
diversifying the large corporation's beverages portfolio with better-for-you options for healthconscious consumers. PepsiCo could complete the acquisition as early as this month with an expected value of less than $500 million, the sources said. However, negotiations could delay or stop the deal. This deal could show how PepsiCo made use of an exit strategy to make a venture capital investments in a startup. By investing early, major manufacturers can learn the inner workings of a startup's operations and portfolio, while positioning themselves to acquire the company outright for a lower price tag down the line. Without an early investment and minority stake, an acquiring company could end up paying a much higher price for the startup after it grows and proves its market potential. Consequently, more manufacturers are launching venture arms, like PepsiCo's Naked Emerging Brands or Coca-Cola's Venturing and Emerging Brands.
Sugary drinks sales may slump down due to tax hike
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ccording to a report by World Health Organisation (WHO), if there is a hike in the retail price of sugary drinks by 20 per cent, then it will affect the consumption pattern. WHO has joined a long list of countries who support the sugar tax, with its latest report campaigning for improved nutrition.
beverages by 5% in 2014. Manu Raj Mathur, Research Scientist and Assistant Professor, Public Health Foundation of India said, “Higher tax is definitely one of the strongest interventions to reduce consumption, but it should be accompanied with robust behavioural interventions to change social norms and perceptions.”
The report said that reduced consumption of these products will improve the health status of people as they will have less intake of free sugar and calories. Better nutrition and there will be less cases of obesity, diabetes, overweight, tooth decay. One in 200 deaths has been accounted to sweetened beverages, which has increased the ratio of cardiovascular diseases, obesity and diabetes in India. In order to curb consumption, the Indian government had increased the tax on such
People don’t need sugar in their diet, as the ideal intake should be below 10% of the total calorie intake of the person. WHO in its report has urged governments to subsidise fruits and vegetables which will encourage people to eat more. Such taxation should be limited to items "for which healthier alternatives are available". In various countries, the sugar products are priced at high rate and the health group suggests that the similar steps can be taken for other foods items that are rich in trans-fat, salt and saturated fats.
Coke’s growth in India loses fizz
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oca-Cola's growth plans in India have hit a bottleneck as sales of its beverages in the third quarter (July-September) have been dragged down by rising health concerns over sugary drinks and wary consumer spending.
month, PepsiCo's Chairman and CEO Indra Nooyi unveiled ambitious plans to reduce the amount of sugar in its beverages, signalling a larger global trend that shows a slowdown in sales of sugarsweetened beverages.
The Atlanta-based company, maker of drinks such as Thums Up, Sprite, Maaza and Minute Maid, said its sales volume in India declined by 4% in Q3. In the same period last year, Coca-Cola's sales in India grew by 4%.
In India, while Coca-Cola and PepsiCo control around 80% of the soft drink market, the carbonated category, (worth Rs 14,000 crore) consisting of colas and lemony drinks such as Pepsi and Sprite, accounts for more than 70% of the overall market, according to Nielsen. However, the widespread availability of health-based drinks such as packaged lassi, aam panna and soya milk among others have dented the growth of fizzy beverages in India. Coke re-entered the dairy category in January with its flavoured milk brand Vio.
"The company needs to diversify into more categories here other than sugary carbonated beverages, as sales of soft drinks in India is following a different trajectory than in other markets," said Arvind Singhal, Founder and Chairman of retail consultancy Technopak. "Coke's rival PepsiCo has done reasonably well by building a successful food business." At present, fizzy drinks account for less than 25% of PepsiCo's global revenues. Earlier this
"While Indians in their thirties and above are shifting to healthier beverages, children are still consuming soft drinks," said nutritionist and author Pooja Makhija. "However, as they are wellexposed to what's happening around them, they will also realize the health concerns of consuming colas soon." Apart from a growing negative perception of sweetened beverages, increased taxation of sugary drinks in many markets, including India, have led beverage companies to pass on the extra cost to consumers, making their products dearer in pricesensitive markets.
‘Ojasvita’ -health drink launched by Sri Sri Ayurveda
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he health drink – Ojasvita is a consumer product launched by spiritual guru Sri Sri Ravishankar company, Sri Sri Ayurveda. The brand ambassadors of this health drink are Olympic silver medallist PV Sindhu and the Indian Badminton team, Chief National Coach – P Gopichand. Ojasvita is available in different flavours namely vanilla, strawberry, mango, chocolate, and Ragi was unveiled by PV Sindhu recently. In the year 2003, Sri Sri Ravishankar stepped into the FMCG market with his company by the name of SriSri Ayurveda (SSA) which mainly focuses on Ayurvedic products. SSA has various categories of products which caters to the market target audience. Breakfast cereals, spices, oil, personal and dental care, health drinks, oil, cookies and ready-to-cook items, are some of the products in the market. The company plans to launch products for personal care and home care segments in this
financial year. The FMCG sector in India is dominated by few Indian and multinational companies, but the industry is now witnessing entry of entrepreneurs of the spiritual ranks – the Indian baba (spiritual preacher). These latest entrants like Baba Ramdev and Baba Gurmeet Ram Rahim Singh have successfully managed to build strong consumer base and market share. With the added advantage of being spiritual preachers, they use the ‘Make In India’ concept to the fullest and other marketing strategies have enabled them to achieve a successful run in their venture. Patanjali – Baba Ramdev’s company is leading with a strong market presence by its tie-ups with several departmental stores. Sri Sri Ayurveda (SSA) has yet to establish their network for growth and sales of their products. By 2017, SSA plans to open 2,500 outlets and at present sells its products through 600 authorized stores.
PepsiCo sued over Naked juice claims again
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he Center for Science in the Public Interest (CSPI) has sued PepsiCo for misleading marketing messages made by its Naked Juice brand. CSPI is concerned that the brand is duping consumers into believing they are primarily drinking "the healthful and expensive ingredients advertised on Naked labels, such as berries, cherries, kale and other greens, and mango The claims of misleading messages surround Naked's positioning as a healthy, "no sugar added" beverage while containing more sugar than a
Beverages & Food Processing Times
can of Pepsi. CSPI also said Naked's marketing was misleading because it emphasized certain ingredients on its packaging while the main ingredients were "cheap, nutrient-poor" juices. But as the FDA reconsiders its definition of "healthy", particularly taking into account high sugar levels of food and beverage products, more labels could be considered misleading. Taglines for the Naked Juice brand include "just the healthiest fruits and vegetables." If the product's sugar levels exceeds a certain level, that could negate those health claims and force PepsiCo to rethink its marketing strategy for the brand. PepsiCo has already been through litigation with this premium juice brand. In 2013, the company settled a class action lawsuit for $9 million after prosecutors accused the Naked Juice brand of falsely advertising some of its products as "all natural" and non-genetically modified.