Non-alcoholic beverages giant Coca Cola India has reduced the retail prices of its carbonated soft drinks brands Coke, Thums Up, Limca, Sprite and Fanta.
To begin with, the new rates will be applicable in Mumbai and they will be extended nationally later.
The prices have been slashed to Rs 5 for a 200 ml bottle and Rs 8 for a 300 ml bottle, a reduction of over 15 per cent.
Industry sources said arch rival Pepsi would also be following suit soon. However, no official response was available from the company.
Explaining the rationale behind the move, Jyant Khosla, Coca Cola India region operation director, said: "This is in keeping with our policy to enhance the affordability factor and increase availability of our products. The lower prices will provide an opportunity to a larger section of consumers to experience our world-class products on a regular basis."
The vision is to lead the beverage revolution in India and maximise the company's presence in the non-alcoholic beverages category. The 200ml and 300ml packs form 70 per cent of the Mumbai market for Coca Cola.
The per capita consumption of soft drinks in India is very low, even if compared to many third world countries.
The new price is expected to expand the consumer base and the market size of the soft drinks industry.
Also, the rural market is growing at a faster rate as compared to the urban market. Pricing is a key factor in boosting sales in this segment.
The company addressed this segment with the launch of its 200ml pack this year, which has seen an increase in volumes.
Coca Cola has a 58 per cent share in the soft drinks market in India.
The rural market contributes around 30 per cent to the turnover of the company.
Coca Cola has 33 bottling plants, which are fully owned whereas 15 plants are operated on a franchisee basis. And has over 20 contract manufacturers.
