Health is wealth

Calcutta, Sept. 9: Coca-Cola India is planning to launch flavoured water, sports and energy drinks.

Coke will introduce global brands such as Bonaqua and develop local flavoured products such as pudina and mango water.

The company has recently acquired Energy Brands Inc’s Glaceau for $4.1 billion. Glaceau, which has products such as smartwater and fruitwater, is expected to clock sales worth $700 million by the end of this year.

“We are examining options like energy drinks and flavoured water as Indians have become more health conscious. Such niche drinks will cater to the beverage needs of the urban citizens,” said Vikas Chawla, vice-president — franchisee operations, Coca-Cola India.

Tata Tea had earlier bought a 30 per cent stake in Glaceau, which it sold off to Coke.

In an earlier report, Coca-Cola said it plans to launch health drinks in the sparkling and still ranges.

According to a report by Canadean, a global beverage research company, sales of carbonated drinks had declined for the second consecutive year in 2006-07. The numbers are not expected to improve significantly this year also. Coke, however, has grown 12 per cent in the second quarter.

Industry analysts predicted that the flavoured water market would grow to $800 million by 2009 from $168 million in 2004, a more than four-fold rise.

The flavoured water market in India is small, valued only at about Rs 11 crore. The bottled water market is valued at Rs 1,100 crore.

Coke also offers mango pulp drinks Maaza and Orange drink Minute Maid.

Chawla said Coke sources mango pulp locally through a third party contractor. It imports orange pulp from Brazil and Florida.

With increase in sales, Coke will look at sourcing orange pulp locally.

The juice market promises a huge growth opportunity for Coca-Cola India, as only 10 per cent of such products in the country are packaged. The juice market is sized at 50 million cases. A case holds 5.5 litres.

Coke is also planning to set up a global corporate university for employee capability building in the country. The university will cater to its bottlers and key customers, sources said.