ITC eyes 12% market share in packed juice segment by next year
New Delhi: FMCG major ITC is eyeing 10 to 12 per cent market share in the packed juices and fruit beverages segment by next year as the company bets on its not from concentrate' range of juices, said a top company official.
ITC would continue to add more flavours in B Natural's portfolio and plans to add 4-5 new variants in next few months. Besides, the Kolkata-headquarted company is also looking to tap the export market.
"We believe that we should get double-digit market share of the juices by next year," ITC Divisional Chief Executive, Foods Division Hemant Malik said.
According to the company, B Natural is a Rs 100-crore brand at present, and is growing 25 per cent annually. ITC has around 7 per cent share in the juices and fruit beverages market, which is estimated to be around Rs 2,500 crore.
The market is growing 13 to 14 per cent annually and is dominated by players like Pepsico's Tropicana and Dabur's Real, the company said.
As per its strategy, ITC has now shifted away from making juices from concentrates, which are mostly imported, and is now leveraging strength of its agri division to directly source fruits from farmers and convert pulps into juices.
"This will lead to sourcing of over 2.5 lakh tonnes of fresh fruits directly from Indian farmers annually instead of importing concentrates," said Malik.
Globally, the trend is moving towards not-from-concentrate based juices, and in markets as US, it is sold at 30 per cent premium, he added.
"We have 13 products and now our entire range would be made not from concentrate and fruits sourced from the domestic market," said Malik.
It is also strengthening the distribution network of B Natural and would focus on small tier III markets, which have also started consuming packed juices, besides tier I & II places.
"We are using our distribution strength to expand availability across both rural and urban markets," he said.
Besides ITC has also started exporting B Natural to Middle East targeting the Indian diaspora and is looking at markets as US, Canada, Australia and New Zealand.
The company is also spending on branding and promotions substantially, he said, without disclosing