While Kashmir consumes Rs 270 Crores worth of carbonated drinks and juices annually, local drinks have only 2% market share
Indigenous Industry Lacks Highly Sophisticated Marketing Approaches to Grow Local Brands
Srinagar: The consumption of carbonated and non-carbonated drinks in the State has touched a whooping Rs 270 crores annually, however with the drinks being manufactured outside and local producers holding mere 2 percent market share, local processing unit-holders are worried over what the trend would mean to their business.
“The trend is quite dangerous for the local processing units,” said Dr Zainul-abidin, President Kashmir Chamber of Food Processing Industry (KCOFI).
Furnishing details he said that the non-carbonated drinks have a market of Rs 55 crores in the State and is almost entirely under the control of foreign brands.
Across the State there are around 40 beverages and juice manufacturers, some owned by government and some by local entrepreneurs, but they are nowhere in competition with brand leaders like Coca Cola, Pepsi, Real, Tropicana and Rani juice “which leaves a very less space for the local brands like FIL, Shah Foods, Hyacinth juices and others.”
“The local brands are no where in contest,” he said.
According to the figures available, in 2008 alone, the State witnessed a consumption of around 18.40 lakh liters of Slice Juice—a Pepsi product, 27.60 lakh liters of Maaza juice—a Coca cola product, 17.35 lakh liters of Appy juice, 8.50 lakh liters of Real juice, 15 lakh liters of Rani juice and 8.50 lakh liters of other juices like Jumpin and domestic brands. The leading brands in carbonated segment Pepsi and Coca Cola saw sale of 7 lakh crates.
“This means we have a huge consumer base here. And definitely a potential market of juice and beverage industry,” the KCOFI President said.
Zainul-abidin proposed several initiatives, which he said, would help the local industry grow and have a bigger share in the total beverage market of State.
“We essentially need a cold storage and easily available raw material. We don’t have a proper packaging plant. Besides it is poor lending from banks that is stopping local entrepreneurs to enter the business,” he said while appealing government to consider these demands.
Meanwhile, President of Federation Chamber of Industries Kashmir (FCIK) Shakeel Qalander said that the trend of choosing juices over carbonated soft drinks is increasing and if proper plans are set up, local industry can make it to the 70 percent of the total share.
“And that can happen in next five years. I can bet on it,” the FCIK president was confident.
He said the local entrepreneurs have managed to set up eight mineral water plants across the Valley and similarly, if government helps, “we can have a good share in the non-carbonated beverage market.”
Almost 7 lakh metric ton of fruits every year during culling stage, he said, simply go waste which can be stopped by declaring orchardists and farmers as processors, giving them a small processing unit, where in they could start processing these fruits simply from their farms.
“Encouraging our own units would reverse the trend of consuming imported beverages,” Qalander added.
(Rising Kashmir)