Coca-Cola India is currently testing Kinley Flavors in selected market areas and will expand its availability over time. Kinley Flavors will be 35% to 40% cheaper than Coke, Sprite, and Fanta packaged in 250ml PET packs, the company said.
However, prices of Coca-Cola India’s entire sweetened carbonated beverage portfolio will experience marginal increases with the introduction of a goods and services tax (GST), implemented July 1, 2017, taxing the category at 40%.
Coca-Cola India currently sells sparkling and still bottled water under the Kinley brand, both of which are not affected by GST and will see a price drop, the company said.
Developing local appeal
There are more than 200 local beverage brands in India such as Bovonto in Tamil Nadu, Alwar-based Jayanti Cola, Xalta cola made by a Delhi-based company, City Cola by Rahul Beverages, and Campa Cola.
Together these smaller regional brands make up 12% of the market share in India and less than half the price of soda produced by multinational corporations, according to Coca-Cola.
In order to compete in the value segment of the beverage market, Coca-Cola will have “popular localized flavors” under its Kinley Flavors label including lemon, jeera (also known as cumin), and orange.
Coca-Cola will also launch Monster Energy in India over the next few weeks to boost sales in its energy drinks segment.