New Delhi, Aug. 1: Beverage major PepsiCo is planning to launch a no-sugar diet cola.

The demand for these fizzy, low-calorie diet colas, which include Diet Pepsi, constitutes less than 5 per cent of the Rs 8,000-crore aerated drinks market, though they have been available for more than a decade.

Sources said the new drink could be similar to the international brand Pepsi Max, which is sold in more than 40 countries and marketed as an alternative to regular Pepsi and Diet Pepsi.

A lime version of Pepsi Max was launched in the US in February under the name Pepsi Max Cease Fire.

“This could also be brought to India depending on the success of the domestic version of Pepsi Max,” sources said.

Pepsi Max’s global rival Coke Zero — a sugar-free drink from Coca-Cola — is imported in India.

According to analysts, the new drink from Pepsi can stoke the demand for low-calorie aerated drinks.

The market for low-calorie drinks is expected to nearly double in the next five years.

The new drink will be available in both PET bottles and cans and priced competitively.

The drinking product portfolio of Pepsi includes Mirinda, Mountain Dew, 7UP, Tropicana and Slice. Pepsi is promoted as a youth brand in the country.

India is a key market for cola companies, which have been clocking a quarterly growth of above in 20 per cent.

While PepsiCo, the world’s largest snack maker, posted a 3.4 per cent drop in second-quarter profit, it registered a double-digit growth in volumes in India.

Analysts said Pepsi had invested over $700 million in the country and wanted a faster return.

The launch of high-margin products such as low-calorie drinks can help them achieve their goal.

Coca-Cola and PepsiCo have recently come together along with other beverage makers and bottlers to form the Indian Beverage Association, which will be the industry’s single point of interaction with the government.

It will also help companies comply with food safety guidelines and other regulations.