Coke takes road to transformation, targets health-conscious consumers

The country’s largest beverage maker Coca-Cola India is slowly but steadily transforming itself, as the pressure to move away from fizzy drinks and target health-conscious consumers grows. In the past three years, the Indian unit has launched nearly two dozen products in categories such as juices, water, and milk-based beverages, taking its revenue contribution from non-fizzy drinks to 40 per cent from 25 per cent.

Backed by recent bold bets in coffee (it acquired Costa Coffee last week globally and will rejuvenate the brand in India) as well as its interest in health drinks, including brands Complan and Horlicks that are up for sale, Coca-Cola India's plan, say executives, is to take its revenue contribution from non-fizzy drinks to 50 per cent in the next three to five years.

Coca-Cola's total India revenue, including turnover from company-owned and franchisee bottling operations, is Rs 160 billion, with 60 per cent coming from fizzy drinks. A Coca-Cola India executive said, “We have a good mix of sparking and still beverages. It is difficult to say when the share will become equal but what we can say is that both categories are growing at a healthy rate.”