The Hindu Business Line : Rlys proposes to sell coconut water: Cola majors stay cool

While both soft drink majors Pepsi India and Coca-Cola India are toying with the idea of foraying into this beverage segment even though the projects are long-term, another interesting development is now unfolding.

According to industry sources, the Railways is considering giving the go-ahead for the sale of tender coconut water inside trains, following a proposal mooted by the agriculture lobby in Tamil Nadu and Kerala through the Agriculture Minister, Mr Ajit Singh.

While a senior Railways official confirmed to Business Line that there was such a proposal, he added that issues such as logistics and transportation of the beverage needed to be sorted out first.

Meanwhile, both cola companies maintain that the sale of tender coconut water inside trains would not impact their sales directly. "It is too early to comment. However, coconut water-based beverages are obviously not direct competition for us," said a Coca-Cola official. A Pepsi India official echoed this.

However, analysts tracking the soft drink sector maintain that if the coconut water project does get going in full swing, it would have an impact on soft drink sales in trains. "Sale of alternate beverages in trains could easily impact soft drink sales. Trains do comprise a reasonable market for the soft drinks industry," analysts said.

According to industry sources, political leaders, especially from Kerala and Tamil Nadu, have been lobbying with the Railways, as also with several other establishments including defence canteens, to allow sale of tender coconut. The primary reason is to placate the coconut-farming lobby in these States, especially in the wake of coconut prices being volatile and rather depressed in recent years. The Kerala State Tourism Development Corporation (KTDC), for example, had been pushing the cause of tender coconut water for a while now, sources said.

However, what is interesting to note is that while agricultural movements in Kerala have been talking about packaging tender coconut water, successful ventures in this segment have been negligible. "There have been experiments by unorganised sector players, but sustaining operations is fraught with bottlenecks. Efforts of agricultural lobbies in promoting coconut water will take a leap only when big players come forward and hit the market," industry observers said.

Send this article to Friends by E-Mail

Stories in this Section
Sony to focus on prime time slot

Rlys proposes to sell coconut water: Cola majors stay cool

BPCL in bid to promote piped gas in South

McDowell executes a good `shot'

Amway `open' to making investments in State

US venture shortly — LIC finds slight dip in policies sale

Totus unveils new HR tool

Mukta Arts promotes new co for TV software

Sandpiper fizzes in AP market