Coca-Cola likely to enter pure dairy segment in India

Soda and juice maker Coca-Cola is working on an ambitious plan for the Indian market — an entry into the pure dairy segment, which will pit it against Amul, Britannia and Nestle. The maker of Thums Up cola and Minute Maid juice plans to introduce its global milk-based beverage brand Vio in India — without any carbonation.

Coca-Cola has roped in dairy giant Schreiber Dynamix Dairies for its milk drink, one of the officials said. The plan is to introduce bottled Vio in locally relevant flavours in the first phase.

The company's customers include Pepsico, Nestle, Britannia and Mother Dairy, according to its website. Coca-Cola's move to tap the dairy market comes as fizzy drink sales have been struggling with low single-digit growth over at least the past five quarters. Aerated drinks are driven by seasonality and remain an indulgence consumption. Packaged dairy is  growing at about 15%.

Vio isn't the first milk-based drink from the Coca-Cola deck. Late last year, it had launched Fairlife in the US, a premium product introduced through a joint venture with dairy farmers and made using a proprietary milk filtering process. The product is relatively new and hasn't yet found much consumption traction.

Read more at:


Fight outsourcing and job destruction!