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Karnataka beverage market in growth overdrive
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Thursday, 01 April, 2010, 08 : 00 AM [IST]
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MV Chandrashekar, Bangalore
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Karnataka beverage markets is on a major growth drive. There are at least 10 companies in the state engaged in the manufacturing of beverages.
Although the industry experts were not able to provide the market size, the view is that beverages market was on an upswing. Consumption of beverages was on the rise especially by the youth population.
Beverages are classified as fresh fruit drinks, energy drinks, hot and cold varieties like cocoa, tea and coffee, milk shakes, soft drinks, smoothies and spirits.
Karnataka’s six agro climatic zones are the key drivers of the beverage industry in the state. From pomegranate, grapes, pomello, passion fruit, mango, sugar cane, tender coconut guava to name a few, all these fruits are cultivated across the state.
The cultivation of these fruits has seen many companies set up production plants here. These are Balan Natural Food (P) Ltd, Jagadale and HOPCOMS which is a Karnataka government undertaking, Vivekananda Girijana Kalayana Kendra and a host of small entrepreneurs from the Association of Women Entrepreneurs of Karnataka besides Karnataka Milk Federation and Nilgiris.
Mandya district, which is known for the production of the highest sugarcane in the state, has led to many small kiosks vending this juice being set up by entrepreneurs. These include five major players Cane Fresh, Kabbu, Cane'o La and Health Magic Natural Foods.
Bangalore and Tier II cities have seen several of such outlets spring up, said Krishna Hegde, CEO, Nammura Hotels Pvt. Ltd. In fact, Nammura Hotels commissioned Cane’o La with over 15 outlets in Bangalore.
Although there were several unorganised players in the sugar cane juice crushing outlets, consumers refrained from consuming because of hygiene factors. Now with the advent of these convenient, clean and comfortable outlets using imported juice crushing machines and ice prepared using RO (reverse osmosis) water, the quality of juice is far superior.
The outlets having carried out considerable research on the advantages of sugar cane and highlighting the health benefits along with the calorie count, has proved to be a major success in the market. Further these outlets have also come up in many large IT companies.
Balan Natural Food (P) Ltd is known for its range of mango-orange, jamun, litchi and pomegranate beverages to name a few. Jagdale Foods( part of the Jagdale Industries) with its brand 'Bejois, a much-sought-after drink in Tetra Pak. Vivekananda Girijana Kalyana Kendra (VGKK), a non-governmental organisation (NGO), based in Biligiri Ranganna Hills in Chamrajnagar which is engaged in the production of health drinks sold under the brand name “Prakruthi Products.” Three varieties are Sogade Beru (Nannari Sherbet) made out of roots, jamun and gooseberry. Karnataka Horticultural Co-operative Marketing Society (Hopcoms) produces fresh grape and mango juices sold in glass bottles which are old at its over 25 outlets and two mobile counters across Bangalore. Grape juice is prepared from the Bangalore Blue varieties and Totapuri, Malgau and Badami varieties are used for mango juices.
Jain Agro Foods Products (P) Ltd known for its brand “CocoJal” which is a natural tender coconut water packed in food grade plastic bottles is available at all retail outlets in the state and country.
Key drivers for the beverage sector are young population, dual income and awareness on health drinks.
The visible trend in beverage selling is companies providing use and throw glasses to consume the drinks and small packs, stated industry sources.
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