NEW HORIZONS

Calcutta, July 22: Coca-Cola India Limited is planning to strengthen its presence in the packaged drinking water segment. The company will introduce its global water brand Bonaqua in select markets and revamp the Kinley brand.

“We are open to opportunities and our water business has been part of our overall growth story in the last eight quarters. We shall evaluate the market and depending on consumer needs take a call,” said Avinash Pant, director (marketing) of Coca-Cola India Ltd.

In the last quarter, the company registered a 13 per cent growth rate in its drinking water business in India.

At present, Coca-Cola is test marketing its Bonaqua water brand.

It also plans to repackage the Kinley brand accompanied by a new marketing campaign. The new-look Kinley will be available in Delhi, Uttar Pradesh, Punjab and Rajasthan.

Coca-Cola, which has over 400 international brands in its kitty across various categories, is betting big on the Rs 1,250-crore Indian bottled water market, which is growing at the rate of 25-30 per cent.

Earlier, companies offered retail margins of 20 per cent to 40 per cent on packaged drinking water against 8-10 on soft drinks and, therefore, the need for promotion was limited.

But with the growing number of local, national and international brands, marketing and promotion have become a necessity.

In developed markets such as the UK, the packaged water market is slated to grow at the rate of 8.7 per cent over the next three years, while soft drinks is estimated to grow just 1.2 per cent.

According to industry sources, the Rs 1,000-1,250-crore branded water market is divided more or less evenly among Bisleri, which accounts for Rs 250 crore, Kinley (Rs 240 crore) and Aquafina (Rs 238 crore).

Moreover, Coca-Cola also has the recently acquired the Glaceau brand in its non-carbonated beverage category.

The beverage major has invested over $1 billion in India so far and will invest $250 million in the next three years.

“We are committed to investing in India and plan to invest $250 million in the next three years. India, as part of BRIC nations, is a market of strategic interest on which the company is focusing,” Atul Singh, president and CEO of Coca-Cola India, had said. The bulk of the investment will go towards brand promotion and purchase of equipment.