Flavoured water finds favour in India

Dire warnings that the future wars will be fought over water may come true sooner than anticipated, albeit with a flavour. At least four behemoths, three of them multinationals, will soon mount an assault on the flavoured water market. So far, north India-based D S Foods, not encumbered by any competition, has been ruling the market with its Catch brand priced at Rs 30. That will change soon as Coca-Cola, PepsiCo, Nestle and Tata Tea "� the first three already dabble in bottled water "� will soon try to trip Catch. The fourth, Tata Tea, had recently taken 30 per cent equity in Glaceau of the US, which has a large portfolio of enhanced waters, only to sell it to Coke. It has recently acquired the Himalayan water brand. The flavoured market in India is small, only about Rs 11 crore out of the total bottled water market of about Rs 1,100 crore. But many small market segments have been known to explode with the entry of good products. For example, enhanced and flavoured waters were just $ 234 million in the US in 2000. By 2010, the category is projected to grow to $ 8.6 billion and is the fastest growing beverage category. India shows a similar promise. The "2007 India Soft Drinks Report" by international beverage research specialist Canadean, says carbonated beverages declined in India for the second consecutive year in 2006, with little improvement projected in 2007. Packaged water growth projections, however, are in excess of 40 per cent, with still drinks (Frooti, Maaza and others) growing at under 10 per cent. Coca-Cola is expected to launch Bonaqua, by December this year.Globally, Bonaqua sells sparkling flavoured water in ranging from strawberry, litchi, apple and mint to lemon and lime. In India, it is likely to be priced between Rs 20 and Rs 30 a bottle. Coca-Cola already sells in India the bottled water brand Kinley. "We are constantly looking at newer innovations in the potential market segments," said a spokesperson for its India operations. Tata Tea is also looking to extend Himalayan into flavoured water. However, its executives only said that the company was looking to extend the brand into premium categories. PepsiCo too is believed to be planning to extend its bottled water brand, Aquafina, into flavoured water. A company executive said it was too early to comment as entry plans were still being evaluated. Nestle executives refused to comment. Parle's Bisleri, PepsiCo's Aquafina and Coke's Kinley at present rule the lower end of the Indian packaged water category, priced as they are between Rs 10 and Rs 14 for a 1 litre bottle. The top end is dominated by imported brands like Groupe Danone's mountain water brand Evian and Nestle's sparkling water brand Perrier, priced between Rs 80 and Rs 110 a litre. Himalayan costs Rs 25 a bottle. Flavoured water falls in the mid-priced segment of the bottled water category. WATER WISDOM D S Foods is now ruling the Indian flavoured water market with its Catch brand priced at Rs 30 Coca-Cola, PepsiCo, Nestle and Tata Tea are set to enter the market soon The flavoured water market now is just 1% of the Rs 1,100 crore packaged water category in India

Flavoured water finds favour in India

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