Campa, Smoodh and now, Amul Tru: India's ₹10 beverage market ...
From buttermilk to fruit drinks and sparkling beverages, consumer companies are driving deeper into the market for ₹10 packs. Amul, Parle Agro, Reliance Consumer Products, and Dabur are ramping up efforts to expand their ₹10 offerings, bringing affordable drinks to a wider section of customers.
Amul's Tru Offers Affordable Dairy-based Fruit Drinks
Last week, Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF), which sells dairy products under the Amul brand, launched Tru dairy-based fruit drinks at ₹10 for 150ml. The dairy giant plans to introduce more beverages at this price point.
According to Jayen Mehta, managing director of GCMMF, "It’s a category we want to explore and unlock its potential." While Amul currently sells buttermilk in pouches at ₹10, Tru is its first tetra-pack product at this price.
In tetra packs, Amul Kool flavoured milk is priced between ₹20 and ₹40, while buttermilk starts at ₹15. The ₹10 buttermilk pouch, however, generates significant volume for the company.
Expansion Plans and Competition in the Market
Amul may launch more non-dairy beverages at the ₹10 price point. Mehta stated, "We are prepared to enter the ₹10 segment and double our volumes. This is achievable given our extensive distribution reach."
According to analysts, Amul's Tru product competes indirectly with Dabur’s Real, Varun Beverages’ Tropicana, Britannia’s Winkin Cow, and Parle’s Smoodh. However, product availability and sustained advertising will be crucial for scaling up.
High inflation poses a challenge in the race for the ₹10 market, forcing companies to lower quantities to sell at the same price.
Meanwhile, Campa’s re-entry has shaken up the market, impacting established players like Coca-Cola, Pepsi, and Tata Consumer Products. Campa has captured over 10% market share in the sparkling beverage category in select states.
Reliance Consumer Products Innovations
Reliance Consumer Products Limited (RCPL) relaunched its Campa brand at ₹10, disrupting the low-priced beverage market. The company also debuted sports drink Spinner and Gluco Energy, both priced at ₹10 per unit.
Parle Agro's Smoodh Success
In 2021, Parle Agro introduced its ₹10 dairy beverage Smoodh, which has become a ₹685 crore brand by February 2023. The company's focus on driving efficiency throughout manufacturing and supply chain processes has helped maintain competitive pricing.
Smoodh benefits from Parle Agro’s extensive distribution network, spanning 2 million outlets nationwide.
India's Growing Beverages Market
India’s beverages market, including carbonated soft drinks, juices, bottled water, and fruit-based beverages, was estimated at ₹67,100 crore in 2019. The market could touch ₹1.47 trillion by 2030, according to a report from think tank ICRIER.
₹10 has historically been a popular price point across consumer goods categories, expanding accessibility for the large Indian middle-class population.
Dabur's Real Fruit Drink Portfolio
Dabur India added the ₹10 price point to its Real fruit drink portfolio three to four years ago. Monisha Prasher, marketing head for beverages at Dabur India Ltd, stated, "The ₹10 portfolio has helped us expand our distribution and helped consumers enjoy real fruit goodness at an affordable price point."
