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ITC aims 10-12% market share in packed juice segment by next year
The Economic Times - 11 Apr 2018

FMCG major ITC is eyeing 10 to 12 percent 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 told PTI.

According to the company, B Natural is a Rs 100-crore  brand at present, and is growing 25 percent annually. ITC has around 7 percent  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 percent 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  percent 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 the numbers.