Pepsi, HLL form JV for Lipton ice tea

Pepsi India and Hindustan Lever (HLL) have joined hands in India to market ice tea - a segment that's expected to grow to 5-10% of the Rs
6,000 crore carbonated soft drinks market.

The two companies today announced a 50:50 joint venture, and launched Lipton ice tea through the alliance that pools their respective strengths to market, sell and distribute Lipton ready-to-drink tea and tea-based beverages in India.

Rajveev Bakshi, chairman of Pepsi India, and S Ravindranath, managing director (foods) of HLL, told a press conference that the arrangement combines Lipton brand equity with Pepsi bottling, sales and distribution strengths.

"Right now, the market for ice tea is non-existent, very, very small. We are creating a new category," Bakshi said. Lipton ice tea would be available in returnable 250 ml glass bottle (Rs 9) and 500 ml PET bottles, officials said.

The joint venture, Bakshi said, would focus on urban areas in the first two years. Lipton ice tea, targeted at the youth segment and positioned as "better for you and good for you" category, would be available initially in 17 cities.