Pepsi Launches Coco Water Product

Pepsi-Cola Products Philippines Inc. (PPCPI) aims to capture P1 billion of the estimated P1.2 billion coco water market potential, equivalent to 2 to 3 million cases, with the launch of its new product Coco Quench under the Tropicana brand as the company takes advantage of the strong trend for healthier natural juices away from the carbonated drinks. PPCPI President Partho Chakrabarti, said yesterday at the launch of the new product that the Coco Quench is going to boost its total revenue sales. The company is on track of meeting its P23.4 billion revenue targets this year from the 2011 figure of P20 billion. "We expect the non-carbonated drinks sales to be even with carbonated drinks in three years," said Chakrabarti. At present, the non-carbonated sales account for 30 percent of its total sales and the huge 70 percent goes to carbonated drinks. Charkrabarti also said they are looking at exporting the Coco Quench, which is the first coco juice in Tetra Pak packaging in the country and in the region, for exports to South East Asian countries, the North Asia and the Gulf countries starting next year. PPCPI is already exporting coco water to the US under another brand "ONE." The packaging of Coco Quench is also in partnership with Peter Paul Philippines Corporation, a coconut processing company based in Quezon province. "If we could get a billion out of the P1.2 billion potential coconut market in the country then that is big one," he said. The coconut vendor sector and the inconsistent marketing of other brands in different packaging formats have very small share of the market, he said. The company's investments have not been much in terms of facilities but rather in the marketing side of the product to create the public's awareness on the health benefits of drinking its product "Nobody has ever done this kind of packaging and marketing," he said. Besides, at a price of P30 for the 350 ml packaging, the company believes the product is very competitive. Part of its marketing campaign is to educate the public about the health benefits of coco water and how the nutritional properties are being preserved in its convenient Tetra Pak packaging. Chakrabarti explained that once the coconut water is exposed its nutrients are gone in four hours, but its manufacturing process enables to retain the properties of the water, which is hydrating and has all the electrolytes plasma of human being thus, it is good for the health. "If you don't drink coco water right away, you will lose all the properties. We are giving people a choice," he said. PPCPI, the second biggest soda product player in the country, accounts for 22 percent of the local soda market while its juice brand under Tropicana is a close competitor of Del Monte's fruit juice brand at 25-26 percent market share. Preference of natural juice drinks is now becoming a global trend where the Philippines is no exception. "But soda is still a huge market and is still growing, but not as much as the growth of natural juices market, so this is a segment we are pushing," he said. PPCPI, which is a 34 percent owned by Lottee Chilsung of Korea, and 30 percent by PepsiCo and the rest is public, has a total of 14 beverage brands being marketed in the Philippines. These include Pepsi Cola, Mountain Dew, 7-Up, Mirinda, Mug, Gatorade, Tropicana, Lipton, Sting and Premier. This year, the company has launched four products and has vowed to launch new ones. (BCM)