miniddy7的部落格

pub_date:Coca-Cola, Pepsico eyeing the US$4.儲存1b soft drink marketAMERICAN soft drink giants Coca-Cola and Pepsico are stepping up their battle for India's estimated US$4.1 billion soft drink market, representing a compound annual growth rate (CAGR) of 12.3 per cent between 2008 and 2012.PepsiCo, the world's largest snack-food maker announced last week that it would invest US$5.5 billion in India by 2020 to bolster production, saying that it had only "scratched the surface" of the Asian giant's potential.This followed an earlier move by arch rival Coca-Cola, the world's largest drinks maker that it intends to pump a total of US$5 billion between 2012 and 2020 to grow its business in Asia's third-largest economy.Pepsico will augment its manufacturing capacity, as well as enrich its current portfolio, by adding new products while ramping up investment in delivery infrastructure in the world's second most populous nation with a focus on the rural segment. The New York-based company has so far invested US$2 billion in India since its entry in 1989."India is a country with huge potential and it remains an attractive, high-priority market for PepsiCo. We've built a highly successful business in India over the course of many years, and we believe we've only scratched the surface of the long-term growth opportunities that exist for PepsiCo and our partners. This investment is PepsiCo's vote of confidence in India's future and it represents our deep commitment to this great country," Indra Nooyi, chairman and CEO, PepsiCo, who is on an India visit, told The Business Times (BT)."India is a market for the future," added the India-born Ms Nooyi. "We do not invest based on short term, we are here for the long term. For a long term, India has the demographic dividend, democracy, it has entrepreneurial environment, and a functioning government."PepsiCo and Coca-Cola's investments, driven by an exponentially growing middle class (estimated to be over 200 million people), are likely to be welcomed by the Indian government which is struggling to restore foreign investor confidence in the wake of GDP growth plummeting to a decade low of 5 per cent, a string of corruption scandals involving top officials and high inflation.According to data from researcher Euromonitor International, PepsiCo's share of the carbonated beverage market in India plunged to 36.4 per cent last year, from 40.1 per cent in 2007 while Coca-Cola's has surged to 60.9 per cent from 57 per cent in the same period.However, both companies are betting on robust growth from a low-consumption base of soft drinks in India to rev up sales. Currently, Coca-Cola and PepsiCo together dominate the Indian market for carbonated soft drinks.India, a country of 1.2 billion people, remains one of the most appealing markets for the two mini storageeverage titans due to its low per capita consumption of carbonated beverages. Indians on average drink 12 eight-ounce - about 240ml - bottles of Coke a year compared with 92 bottles globally according to industry estimates.Also, growth rates in Asia, the Middle East and Africa are almost four to five times those in the US and Europe, making emerging countries such as India a very attractive growth market, said PepsiCo.PepsiCo and its bottling partners plan to more than double production capacity in India by 2020. Pepsi entered the country at a time when the Indian government was liberalising the economy and opening up a plethora of sectors to foreign investment in the 1990s. Coca-Cola returned in 1993 (after leaving India over a dispute involving handing over its secret recipe) buying out top local cola, Thums Up.India is one of Pepsico's biggest markets globally and the investments will help expand its repertoire of food and drinks in the South Asian nation, the company said. Pepsico has also been adding to its list of offerings while roping in Bollywood actors to endorse its range of products estimated to be worth US$4.25 billion by 2018."A stronger distribution in the existing categories and strong forays into new rural markets have helped the company retain its toehold," Mumbai-based trade analyst Murli Menon told BT.Since entering India, Pepsi claims it has created opportunities for more than 200,000 people through direct or indirect employment and agriculture collaborations. It is estimated that the strategic initiative announced last week will add more than 100,000 additional employment opportunities. Pepsi has 42 plants in India, including franchises. The company also intends to step up collaborative farming that it claims has benefited 24,000 farmers.On the other hand, Coca-Cola says that it has already pumped over US$7 billion in India since it re-entered the country in 1993. Coca-Cola India directly employs over 25,000 people and about 150,000 people indirectly.Market analysts believe that growth for both companies in the future will be determined by rural sales as the cities are witnessing a level of saturation. Besides, they point out, the dynamics in the urban segment is changing towards healthier options, such as fruit/vegetable juices and bottled water. It is on the rural turf, therefore, that both companies will joust to enhance their share of the Indian soft drinks pie.Even so, analysts add that despite a first-mover advantage in the market, PepsiCo has not been able to capitalise on this to elbow past Coca-Cola. "The latter's well-fleshed out strategy both at the top and bottom-end of the market spectrum, combined with a price-point edge, have so far helped it remain ahead in the race. But in the future, it could be anybody's game," sums up Mr Menon.self storage