Soft Drinks Industry in India Free Essay Example

Off-trade volumes grew slightly faster than on-trade volumes, driven by higher consumption of packaged and branded soft drinks at home and on the go. The emergence of supermarkets/hypermarkets, heavy consumer promotions and various new product launches played a key role in driving off-trade volume growth. Bottled Water and Fruit/vegetable Juice Continue to be Star Performers Soft drinks sales in 2007 were propelled by bottled water and fruit/vegetable juice with their healthier positioning helping to drive sales of soft drinks.

While carbonates posted single-digit growth in 2007, rebounding from the pesticides controversy of 2006, it was bottled water and fruit/vegetable juice that stormed ahead with high double-digit growth rates. Poor municipal infrastructure for tap water has pushed sales of bulk packaged water to households. Fruit/vegetable juice is growing as a result of increased consumer expenditure on naturally healthy (NH) beverages. While functional drinks and RTD tea also posted impressive growth in 2007, they were growing from a very small base and are yet to achieve a critical mass in terms of establishing a loyal consumer base.

Coca-Cola India and PepsiCo India slip in shares With consumers showing a growing preference for healthier soft drinks such as bottled water and fruit/vegetable juice rather than carbonates in 2007, the two carbonates giants suffered a marginal decline in share. Although both players embarked on a change in strategy to focus more on non-carbonated soft drinks in their portfolios, they were unable to maintain share and lost out slightly to home-grown players Parle Bisleri and Dabur India.

Coca-Cola India launched Minute Maid and pushed the sales of its juices while PepsiCo India heavily promoted Tropicana, Aquafina and Gatorade during 2007.

In addition, Coca-Cola India and PepsiCo India embarked on re-branding themselves as total beverage players and not just carbonates players. Booming Modern Retail Brings Many Opportunities for Soft Drinks Players With the retail scene in India undergoing a rapid metamorphosis with the establishment of supermarkets/ hypermarkets and convenience stores, soft drinks sales have benefited positively. People in urban areas are increasingly flocking to supermarkets to pick up speciality items that are not available in the kirana stores that are found all over India.

Modern retail outlets have provided soft drinks players with many opportunities to push their brands. Consumer promotions for fruit/vegetable juice and emerging sectors such as RTD tea and functional drinks are driving product sampling. Attractive point-of-sale (PoS) displays and gift packs of concentrates are also drawing consumer attention in supermarkets/hypermarkets. Healthy Drinks to Drive Forecast Growth Soft drinks is expected to post a strong performance on the back of increasing affluence amongst consumers and evolving lifestyles which lead to consumers devoting less time to preparing fresh food and drink at home.

Competition from the unorganised sector will diminish gradually as consumers show greater aversion to buying unpackaged and unbranded soft drinks from street vendors due to health and hygiene concerns. Rising health consciousness is also expected to drive sales of naturally healthy (NH) soft drinks such as 100% juice and mineral water.

In addition, soft drinks such as sports drinks and juice-based carbonates are also expected to fare well over the forecast period as consumers perceive them to be healthy http://www. financialexpress.com/old/fe/daily/19990201/03255085p. html Soft-drinks industry to gain from excise slab reduction Tina Edwin New Delhi, Jan 31:

The carbonated soft drinks industry could get some relief in the forthcoming Budget if finance minister Yashwant Sinha reduces the excise structure to three slabs. Aerated beverages including aerated fruit juices, at present, attract the highest rate of duty at 40 per cent. The industry would benefit from changes in the duty structure, if the highest level is brought down to a level of 30-35 per cent, as is generally expected.

The industry is also expecting duties on mineral waters to be brought down from to a level of 10 per cent from the current 18 per cent. The apex industry associations-Confederation of Indian Industry (CII) and Federation of Indian Chambers of Commerce and Industry (Ficci)-have urged the government to reduce the rate on softdrink and fruit juices to bring it to a more reasonable level. While Ficci has refrained from suggesting tariff level for the industry, CII has recommended that the duty could be brought down to a level of 15 per cent. CII felt thereduction in duties would end spurious production of these beverages.

The chambers as well as the industry felt that reduction in duty would not lead to loss in revenue for the government has the demand for these products would increase. The revenue loss arising from reduction in duty would be offset by increased volumes, stated Ficci. Industry sources felt that the government may, despite the resolve to reduce the structure to three slabs, levy punitive tax on soft drinks sold in cans while charging a more reasonable rate for those sold in glass bottles. Others speculate that the government may levy lower rate for smaller bottles.

For instance, soft-drinks sold in smaller bottle sizes such as 200 ml may attract lower rate than the 300 ml bottle. India was a 200 ml and 250 ml prior to the cola war unleashed by the two leading soft drinks giants – Coca-Cola and PepsiCo. Coca-Cola, incidentally, is retailing the flagship brand and Thums Up in 200 ml bottles in parts of Uttar Pradesh and West Bengal for Rs6. Pressing the case of the soft drinks industry, Ficci has in its representation to the government stated that the industry is highly employment intensive and provides direct/indirect employment to about 1.

25 lakh persons. There are about 110 soft drink manufacturing units across the country. It felt that growth in the soft drinks industry would come only if it is given the necessary encouragement. “Excise duty of 40 per cent currently levied inhibits the industry’s growth,” the chamber has stated. It further pointed out that per capita consumption of soft drinks is India is the among lowest in the world. Per capita consumption of soft drinks in India is 6 bottles of (250-300 ml) as compared to 15 in Pakistan, 22 in Sri Lanka, 35 in China, 110 in Thailand, 127 in Phillipines and 700 in US.u http://en. wikipedia. org/wiki/Soft_drink {draw:a}.

Various soft drinks on supermarket shelves. Main article: Names for soft drinks The terms used for soft drinks vary widely both by country and regionally within some countries. Common terms include pop, soda pop, soda, coke, tonic, fizzy drinks, bubbly water, lemonade, and cold drink. Soft drinks trace their history back to the mineral waters found in natural springs. Ancient societies believed that bathing in natural springs and/or drinking mineral waters could cure many diseases.

Early scientists who studied mineral waters included Geber, Alkindus, Rhazes, Paracelsus, Robert Boyle, Friedrich Hoffmann, Antoine Laurent Lavoisier, Hermann Boerhaave, William Brownrigg, Gabriel F. Venel, Joseph Black, and David Macbride. The earliest soft drinks were sherbets developed by Arabic chemists and originally served in the medieval Near East. These were juiced soft drinks made of crushed fruit, herbs, or flowers. [2] The first marketed soft drinks (non-carbonated) in the Western world appeared in the 17th century.

They were made from water and lemon juice sweetened with honey. In 1676, the _Compagnie des Limonadiers_ of Paris was granted a monopoly for the sale of lemonade soft drinks. Vendors carried tanks of lemonade on their backs and dispensed cups of the soft drink to thirsty Parisians. In the 1770s, scientists made important progress in replicating naturally carbonated mineral waters. Englishman Joseph Priestley combined distilled water with carbon dioxide. Another Englishman, John Mervin Nooth, improved Priestley’s design and sold his apparatus for commercial use in pharmacies.

Swedish chemist Torbern Bergman invented a generating apparatus that made carbonated water from chalk by the use of sulfuric acid. Bergman’s apparatus allowed imitation mineral water to be produced in large amounts. Swedish chemist Jons Jacob Berzelius started to add flavors (spices, juices and wine) to carbonated water in the late 18th century. Artificial mineral waters, usually called “soda water,” and the soda fountain made the biggest splash in the United States. Beginning in 1806, Yale chemistry professor Benjamin Silliman sold soda waters in New Haven, Connecticut. He used a Nooth apparatus to produce his waters.

Businessmen in Philadelphia and New York City also began selling soda water in the early 1800s. In the 1830s, John Matthews) of New York City and John Lippincott of Philadelphia began manufacturing soda fountains. Both men were successful and built large factories for fabricating fountains. The drinking of either natural or artificial mineral water was considered a healthy practice. The American pharmacists selling mineral waters began to add herbs and chemicals to unflavored mineral water. They used birch bark (see birch beer), dandelion, sarsaparilla, fruit extracts, and other substances.

Flavorings were also added to improve the taste. Pharmacies with soda fountains became a popular part of American culture. Many Americans frequented the soda fountain on a daily basis. Due to problems in the U. S. glass industry, bottled drinks were a small portion of the market in the 19th century. Most soft drinks were dispensed and consumed at a soda fountain, usually in a drugstore or ice cream parlor. In the early 20th century, sales of bottled soda increased exponentially. In the second half of the 20th century, canned soft drinks became an important share of the market. Over 1,500 U.

S. patents were filed for either a cork, cap, or lid for the carbonated drink bottle tops during the early days of the bottling industry. Carbonated drink bottles are under a lot of pressure from the gas. Inventors were trying to find the best way to prevent the carbon dioxide or bubbles from escaping. In 1892, the “Crown Cork Bottle Seal” was patented by William Painter, a Baltimore machine shop operator. It was the first very successful method of keeping the bubbles in the bottle. In 1899, the first patent was issued for a glass-blowing machine for the automatic production of glass bottles.

Earlier glass bottles had all been hand-blown. Four years later, the new bottle-blowing machine was in operation. It was first operated by the inventor, Michael Owens, an employee of Libby Glass Company. Within a few years, glass bottle production increased from 1,400 bottles a day to about 58,000 bottles a day. During the 1920s, the first “Home-Paks” were invented. “Home-Paks” are the familiar six-pack beverage carrying cartons made from cardboard. Automatic vending machines also began to appear in the 1920s. The soft drink had become an American mainstay. {draw:a} U.

S. containers in 2008. Various sizes from 8-67. 6 (237 mL-2 L) shown in can, glass and plastic bottles In the United States, soft drinks are sold in 3 Ls, 2 Ls, 1. 5 L, 1 L, 500 mL, 8, 12, 20 and 24 U. S. fluid ounce plastic bottles, 12 U. S. fluid ounce cans, and short eight-ounce cans. Some Coca-Cola products can be purchased in 8 and 12 U. S. fluid ounce glass bottles. Jones Soda and Orange Crush are sold in 16 U. S. fluid ounce (1 U. S. pint) glass bottles. Cans are packaged in a variety of quantities such as six packs, 12 packs and cases of 24, 36, and 360.

With the advent of energy drinks sold in eight-ounce cans in the US, some soft drinks are now sold in similarly sized cans. It is also common for carbonated soft drinks to be served as fountain drinks in which carbonation is added to a concentrate immediately prior to serving. In Europe soft drinks are typically sold in 2 L, 1. 5 L, 1 L, 0. 33 L plastic or 0. 5 L glass bottles, aluminium cans are traditionally sized in 0. 33 L, although 250 mL “slim” cans have become popular since the introduction of canned energy drinks and 355 mL variants of the slim cans have been introduced by Red Bull more recently.

Cans and bottles often come in packs of six or four. Several countries have standard recycled packaging with a forfeit typically ranging from € 0. 15 to 0. 25: bottles are smelted, or cleaned and refilled; cans are crushed and sold as scrap aluminum. In Australia, soft drinks are usually sold in 375 ml cans or glass or plastic bottles. Bottles are usually 390 ml, 600 ml, 1. 25 L or 2 L. However, 1. 5 L bottles have more recently been used by the Coca-Cola Company. In India, soft drinks are available in 200 mL and 300 mL glass bottles, 330 mL cans and 600 mL, 1. 25-liter, 1. 5-liter and 2-liter plastic bottles.

A float is created by dropping a scoop of ice cream into a soft drink. In the Midwestern United States, a soft drink with ice cream added is most often called an “ice cream soda,” or soda, for short as they were made at soda fountains. In Australia and New Zealand, this is known as a “Spider. ” In Scotland (mainly the West Coast) it is usually referred to as a “float”. For example; a “coke float”. (Note: As elsewhere, ‘coke’ is often used generically to refer to any cola in Scotland, while ‘soda’ in Scotland is usually taken to mean ‘soda water’). The most common of these is the root beer float.

In Belfast, the capital of Northern Ireland, there is a regional variation: Cola (regardless of brand) and vanilla ice cream constitute a “coke afloat”. In the United States, some floats have specific names such as “Black Cow,” “Brown Cow,” “Purple Cow” (which is vanilla or chocolate ice cream in root beer), or Boston Cooler (vanilla ice cream in Vernor’s ginger ale). Until the 1980s, soft drinks obtained nearly all of their food energy in the form of refined cane sugar or corn syrup. Today in the United States high-fructose corn syrup (HFCS) is used nearly exclusively as a sweetener because of its lower cost.

However, HFCS has been criticized as having a number of detrimental effects on human health, such as promoting diabetes, hyperactivity, hypertension, and a host of other problems. [3] Although anecdotal evidence has been presented to support such claims, it is well known that the human body breaks sucrose down into glucose and fructose before it is absorbed by the intestines. Simple sugars such as fructose are converted into the same intermediates as in glucose metabolism. [4]. However, metabolism of fructose is extremely rapid and is initiated by fructokinase.

Fructokinase activity is not regulated by metabolism or hormones and proceeds rapidly after intake of fructose. While the intermediates of fructose metabolism are similar to those of glucose, the rates of formation are excessive. This fact promotes hepatic fatty acid and triglyceride synthesis, leading to accumulation of fat throughout the body. Increased blood lipid levels also seem to follow fructose ingestion over time. While the USDA recommended daily allotment (RDA) of added sugars is 10 teaspoons for a 2,000-calorie diet, many soft drinks contain more than this amount.

Unless fortified, they also contain little to no vitamins, minerals, fiber, protein, or other essential nutrients. Many soft drinks contain food additives such as food coloring, artificial flavoring, emulsifiers, and preservatives. Soft drinks may also displace other healthier choices in people’s diets, such as water, milk, and fruit juice. [5] A study from Harvard shows that soft drinks may be responsible for the doubling of obesity in children in the United States over the last 15 years. [citation needed] From 1991 and 1995, adolescent boys in the United States, on average, increased their intake of soft drinks from 345 mL to 570 mL.[clarification needed]

Dr. David Ludwig of the Boston Children’s Hospital showed that school children drinking at least eight U. S. fluid ounces (240 mL) or more of regularly sweetened drinks daily will consume 835 calories (3,500 kilojoules) more than those avoiding soft drinks; i. e. , children who drink soft drinks loaded with sugar tend to eat much more food than those who avoid soft drinks. Either those taking sugared drinks lack the same restraint on foods, or sugared drinks cause a rise in insulin that makes adolescents more hungry, causing them to eat more.

Soft drinks (including diet soft drinks) are also typically consumed with other high-calorie foods such as fast food, and may also accompany television viewing. [original research? ] Children who drink soft drinks regularly are therefore fatter on average, in addition to being more likely to develop diabetes later in life (see below). [6] In March 2006, Pediatrics) published a paper Effects of Decreasing Sugar-Sweetened Beverage Consumption on Body Weight in Adolescents: A Randomized, Controlled Pilot Study.

This suggests that reducing consumption of sugar-sweetened beverages helped reduce body mass index in the heaviest teenagers. This was reported as drinking a single 330ml can a day of sugary drinks translated to more than 1lb of weight gain every month. [7] A study by Purdue University reported that no-calorie sweeteners were linked to an increase in body weight. The experiment compared rats who were fed saccharin-sweetened yogurt and glucose-sweetened yogurt. The saccharin group eventually consumed more calories, gained more weight and more body fat, and did not compensate later by cutting back. [8]

In a four-year study of 9,000 middle-aged men and women, researchers at the Framingham Heart Study found that subjects who consumed one or more soft drinks daily (regardless of whether it was diet or regular) showed a 44†48% greater risk of developing metabolic syndrome. [10] The study showed a 31% greater chance of developing obesity (a body mass index of 30 or greater), 30% greater chance of an increased waist circumference, 25% greater chance of developing high blood triglycerides or high fasting blood glucose, and a 32% greater chance of having low levels of high-density lipoproteins (HDL), considered “good cholesterol”.

[10] Most soft drinks contain high concentration of simple carbohydrates – glucose, fructose, sucrose and other simple sugars. Oral bacteria ferment carbohydrates and produce acid, which dissolves tooth enamel during the dental decay process; thus, sweetened beverages are likely to increase risk of dental caries. The risk is greater if the frequency of consumption is high. [11] A large number of soft drinks are acidic and some may have a pH of 3. 0 or even lower. [12] Drinking acidic drinks over a long period of time and continuous sipping can therefore erode the tooth enamel.

Drinking through a straw is often advised by dentists as the drink is then swallowed from the back of the mouth and does not come into contact with the teeth as much. It has also been suggested that brushing teeth right after drinking soft drinks should be avoided as this can result in additional erosion to the teeth due to the presence of acid. [13] According to one report, soft drinks with caffeine can disrupt children’s sleep patterns and may leave them feeling tired during the day.

However, by preventing the consumption of caffeinated beverage three hours before bed time, the effects of this problem may be reduced. [14] There has been a hypothesis that the phosphoric acid contained in some soft drinks (colas) displaces calcium from the bones, lowering bone density of the skeleton and leading to conditions such as osteoporosis and very weak bones. [15] However, calcium metabolism studies by leading calcium and bone expert Dr. Robert Heaney determined that the net effect of carbonated soft drinks, (including colas, which use phosphoric acid as the acidulent) on calcium retention was negligible.

He concluded that it is likely that cola’s prominence in observational studies is due to their prominence in the marketplace, and that the real issue is that people who drink a lot of soft drinks also tend to have an overall diet that is low in calcium. [16][citation needed] In 2006, the United Kingdom Food Standards Agency published the results of its survey of benzene levels in soft drinks,[18] which tested 150 products and found that four contained benzene levels above the World Health Organization (WHO) guidelines for drinking water. The agency asked for these to be removed from sale.

The United States Food and Drug Administration released its own test results of several soft drinks and beverages containing benzoates and ascorbic or erythorbic acid. Five tested beverages contained benzene levels above the Environmental Protection Agency’s recommended standard of 5 ppb. The Environmental Working Group[19] has uncovered additional FDA test results that showed the following results: Of 24 samples of diet soda tested between 1995 and 2001 for the presence of benzene, 19 (79%) had amounts of benzene in excess of the federal tap water standard of 5 ppb.

Average benzene levels were 19 ppb, about four times tap water standard. One sample contained 55 ppb of benzene, 11 fold tap water standards. Despite these findings, as of 2006, the FDA stated its belief that “the levels of benzene found in soft drinks and other beverages to date do not pose a safety concern for consumers”. [20] A report in October 2006 demonstrates that some soft drinks contain measurable amounts of alcohol. [21] In some older preparations, this resulted from natural fermentation used to build the carbonation.

Modern drinks use introduced carbon dioxide but alcohol might result from fermentation of sugars in an unsterile environment. A small amount of alcohol is introduced to at least some soft drinks where alcohol is used in the preparation of the flavoring extracts. [22] The Turkish soft drink manufacturer whose product was listed as highest in alcohol in the October 2006 study noted that the naturally occurring alcohol level in soft drinks is 1. 56 times higher than that found in Kool-Aid.