HLL's iced tea in glass bottles

FMCG major Hindustan Lever Ltd (HLL) is introducing its Lipton iced tea brand in returnable glass bottles (RGBs) for the first time in India.

To sell and distribute iced tea in glass bottles, the company has joined hands with Pepsi Co. Ltd. An HLL spokesperson says that the strategic alliance between the two companies was inked a year ago but the product (in glass bottles) is finally being rolled out this season.

Lipton's one-litre iced tea tetra pack (for Rs 49) in peach and lemon flavours has been in the market for over three years. "But it lacked a strong market presence and hence the need to look at the glass bottle route," points out a Pepsi executive.

RGBs, he claims, is an important category for any beverage company as it drives impulse purchase . "That's why companies concentrate on glass bottles despite the handicaps of breakages and absence of mobility," he adds.

For HLL, using Pepsi's bottling and distribution infrastructure made perfect sense to expand the market for its iced tea brand.

For Pepsi, the launch of Lipton Ice Tea augments its health-oriented beverages portfolio that includes Tropicana and Aquafina.

"We're combining each other's strengths to enter the market with a new category," says the Pepsi executive. Lipton Ice Tea will soon be available in 17 cities across India, though the launch will be staggered.

While the 250ml RGBs, priced at Rs 9 a bottle were launched in Bangalore on April 5, they are yet to be introduced in Delhi, Mumbai and other places.

Though HLL and Pepsi refused to share the details of the JV but indicated that once the product category grows, they may launch more products jointly.

Lipton will be promoted through television commercials as well as onground promotions. Ad agency JWT has apparently just finished shooting the commercial in an island in Malaysia.