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MNCs knock the fizz out of local manufacturers

Goa, highest consumer of soft drinks in India

Ajit John / The Goan | FEBRUARY 09, 2013, 12:57 PM IST

The soft drinks market in Goa will continue to experiencestrong growth in the near future, as the tourism industry expands. Today, thestate is the highest consumer of soft drinks products in the country with 80bottles every year per person as compared to the national average of 10bottles. Albert Zuzarte, Director Sales at Western Beverages Pvt Ltd felt thatthe consumption of packaged water would also increase in the state in the yearsto come by approximately 20% every year.

With the state annually consuming 70 lakh crates a year ofsoft beverages, his company presently has a 19% share of the market. Thecompany is one of 20 local companies battling for a piece of the soft drink andpackaged water market in the state. The number of local companies in operationnow, is a dramatic drop from the days when there were 200 companies spread overvarious talukas and towns selling soft drinks in the state. According toAlbert, the multinationals ensured these companies died out by either breakingexisting business relations or offering larger trade incentives. WesternBeverage is the only operation the state to possess a water packaging unit, PETbottle filling unit, glass filling unit and a PET blowing unit.   

Western Beverages produces and sells its brand of premiummixers under the brand name ‘Twist” currently available in tonic water, Gingerale, Bitter lemon and the Soda water. These products retail at a price of Rs.20 in Goa and Rs. 30 outside the state and the company enjoys a 70% marketshare in mixers. The lemon and orange flavor is very popular. Twist is now alsoavailable in South India, in the west and in Rajasthan. The product will soonbe available in Delhi and Agra. Their other brand Taan has carbonated softdrinks, soda and packaged drinking water. In soft drinks, the company sellslemonade, orangeade, Pineapple fizz and Masala soda.

Breaking convention the company has encouraged local Goanyouth to gain self employment and helped set up a team of 33 dealers who visitset areas in the state. In addition there is also a wholesale depots where aconsumer can purchase any of the products at wholesale price. These outlets areat 18 locations in Salegoa, Candolim, Calangute, Mapusa and Margoa. Plans areafoot to set up a similar operation in Panjim.          

Given the nature of the soft drinks industry in the countryand the trade practices adopted by the multi-nationals ,brands of WesternBeverages are available at Kamat’s supermarkets, Caculo Mall to name a few. Thepremium mix segment is expected to grow sharply in the following years too astastes grow more sophisticated. It is presently growing at 8% and is expectedto increase in pace as the years go by.    

Asked what his assessment of the future was he said that itwas entirely dependent on the tourism industry and that the market, if thingsstayed right, would continue to grow at a healthy pace.

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