NEWS IN BRIEF

Coca-Cola India to compete with local soda brands with launch of Kinley Flavors

Kinley Flavors will be priced 35% to 40% lower than Coca-Cola, Sprite, and Fanta. ©iStock/hanohiki

Coca-Cola will launch of a line of value-priced carbonated beverages in India called Kinley Flavors in order to compete with local soda brands.

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. 

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