Wary of rising competition, Coke, Pepsi keep eye on small rivals

Moneycontrol BureauSoft drink giants Coca-Cola and PepsiCo appear to have become wary of the growing popularity of regional brands.

A report by the Economic Times says that the multinational companies are setting up tracking teams to keep an eye on domestic Indian brands, which are steadily gaining market share.

"The teams looking at these brands are separate from the ones tracking rural markets or counterfeits," a top official from one of the cola companies told ET.

There are around 50 such soft drink brands that are sold in the country with little spending on marketing and which cost about 20 percent less than global cola brands.

"According to industry data, the consolidated market share of these regional brands is 15-17 percent. That’s a sizable chunk of the organised soft drink market, which is estimated at over Rs 14,000 crore," the article quotes the executive as saying.

A Coca-Cola spokesperson told ET that the company was competition-aware but not competition-focussed.

"We stay informed of new products, new brands and emerging consumer preferences," the spokesperson said.