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Coke not to raise prices this summer
BS Bureau in Kolkata | May 13, 2004 08:46 IST
Coca-Cola India has decided not to raise the price of its brands during the summer this year.
A company executive said Coca-Cola was keen to expand the consumer base in the country and an affordable price point would help in achieving that.
"The per capita consumption in India is much lower than the Asian as well as the world average. We are trying to increase the consumption level as well as broaden the consumer base," Sunil Gupta, vice president, public affairs & communication, Coca-Cola India, said.
The company has reduced the price point for 200 ml bottles to of Rs 5. It has introduced 600 ml PET bottles at Rs 15 apart from bringing down the price of bigger containers of 1.5 liter and 2 liter. It has also introduced Sunfill sachet at Re 1 good enough for two glasses.
The company has also targeted rural areas and Sec C and D cities to penetrate its products. A low price point would help in driving sales in those price sensitive areas.
Experts said the move would augur well for the cola major, which was slowly coming out of last year's pesticide controversy, which slowed down sales considerably. "This is the time to consolidate the position and increase the consumer base, especially in small towns and rural areas," they pointed out.
Coca-Cola India which has major brands like Thums Up, Coke, Fanta, Sprite, Limca, fruit juice Mazaa, concentrate Sunfill and coffee and tea brand Georgia, has registered a turnover of $ 900 million with growth of 22 per cent.The carbonated soft drink market in India is estimated at Rs 7,000 crore (Rs 70 billion) while the entire beverage market is Rs 19,000 crore (Rs 190 billion).