CHAPTER 1

INTRODUCTION













Coca-Cola, the product that has given the world its best-known taste was born in
Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the worlds leading
manufacturer, marketer and distributor of non-alcoholic beverage concentrates and
syrups, used to produce nearly 400 beverage brands. It sells beverage concentrates
and syrups to bottling and canning operators, distributors, fountain retailers and
fountain wholesalers. The Companys beverage products comprises of bottled and
canned soft drinks as well as concentrates, syrups and not-ready-to-drink powder
products. In addition to this, it also produces and markets sports drinks, tea and
coffee. The Coca- Cola Company began building its global network in the 1920s.
Now operating in more than 200 countries and producing nearly 400 brands, the
Coca-Cola system has successfully applied a simple formula on a global scale:
Provide a moment of refreshment for a small amount of money- a billion times a
day.
The Coca-Cola Company and its network of bottlers comprise the most sophisticated
and pervasive production and distribution system in the world. More than anything,
that system is dedicated to people working long and hard to sell the products
manufactured by the Company. This unique worldwide system has made The Coca-
Cola Company the worlds premier soft-drink enterprise. From Boston to Beijing,
from Montreal to Moscow, Coca-Cola, more than any other consumer product, has
brought pleasure to thirsty consumers around the globe. For more than 115 years,
Coca-Cola has created a special moment of pleasure for hundreds of millions of
people every day.
The Company aims at increasing shareowner value over time. It accomplishes this by
working with its business partners to deliver satisfaction and value to consumers
through a worldwide system of superior brands and services, thus increasing brand
equity on a global basis. They have nine aims at managing their business well with
people who are strongly committed to the company values and culture and providing
an appropriately controlled environment, to meet business goals and objectives. The
associates of this Company jointly take responsibility to ensure compliance with the
framework of policies and protect the companys assets and resources whilst limiting
business risks.











CHAPTER 2
INDUSTRY PROFILE











SOFT DRINKS INDUSTRY IN INDIA

(Hierarchy
chart-1)
INDIAN BEVERAGES INDUSTRY

Beverages can be classified as non-alcoholic Beverages and Alcoholic Beverages.

NON ALCOHOLIC BEVERAGES
MALTED FOOD & HEALTH BEVERAGE INDUSTRY

The Rs. 14.4 brand malted foods market is composed of two segments brown and
white. While the brown drinks are held to be as energy boosters, the white drinks are
regarded as milk substitutes.
Malted beverages with nutritional attributes control around 70% of the total market
and energy drinks (brown beverages) account for the rest. The malted food drink
industry is
BEVERAGES
Alcoholic Non-Alcoholic
Carbonated Non-
Carbonated
Cola Non-Cola Non-Cola

dominated by few players. These include brands such as Horlicks, Complan and Viva,
which are mainly known as white beverages. Boost, Bournvita, Milo and Maltova on
the other hand are classified as brown drink. Smithkline Beecham's Horlicks and
Boost dominate the segment with around 65 % of the market share.

TEA INDUSTRY
The Rs 86 billion Indian tea industry's leaders have launched a number of instant tea
drinks for the new-generation consumers. Tea has managed to remain on top despite
repeated onslaughts by other beverage segments largely because of its price
advantages. India has a vast domestic market. About 88 per cent of tea grown in India
belongs to CTC variety. India generally produces black tea. Black tea can be
classified into two groups-Orthodox tea and Crush, Tear and Curl (CTC), a cheaper
variety depending on the system of processing the green leaves.
Consumers in different parts of the country have heterogeneous taste. Dust tea is very
popular in the south and in central India. In the western states, good quality loose tea
is preferred in Gujarat, whereas in Maharashtra, consumers provide a large market to
packet as well as unbranded tea. The eastern states of West Bengal and Orissa and
northern states consume CTC.
The main players in the tea industry are Hindustan Lever, Tata Tea, Williamson
Magors, George Williamson, Harrisons Malayalam, McLeod Russel, Bishnauth Tea,
Dhunseri Tea, Warren tea, AFT Industries. These ten companies took together
account for approximately 75 per cent of the turnover. In the packet / branded tea
segment Hindustan lever is the leader. The major segment of the market is dominated
by the unorganized players. Besides, many local brands have entered the packaged tea
segment. There are about1000 brands of tea in the country and out of which more
than 90 % brands are represented by the regional players. Regional brands have
increased their market share from about 37 per cent to around 50 per cent.
COFFEE INDUSTRY
Coffee is consumed largely in the southern states. The size of the total packaged
coffee market is 19,600 tonnes or US$ 87 million. The urban rural split in the coffee
market was 61:39 in 2000 as against 59:41 in 1995.

CARBONATED BEVERAGES AND JUICES INDUSTRY
The total soft drink (carbonated beverages and juices) market is estimated at 284
million crates a year or US$ 1 billion. The market is highly seasonal in nature with
consumption varying from 25 million crates per month during peak season to 15
million during offseason. The market is predominantly urban with 25 per cent
contribution from rural areas. Coca cola and Pepsi dominate the Indian soft drinks
market.

ALCOHOLIC BEVERAGES