ITC bets on local flavours, premium versions to lift juice market share

Diversified conglomerate ITC Ltd is looking to capture 18-20% of India’s juice market through its brand B Natural by focusing on regional flavours and offering premium versions of juices available in the market, a senior company official said.

“The challenge for us is looking at local Indian fruits and making it more accessible to the rest of the country,” said Hemant Malik, head of the ITC Foods Division.

The company, which acquired B Natural in 2014 from South Indian firm Balan Natural Food, is looking to launch at least two variants by October later this year, including Bel (Wood Apple) and Falsa (Grewia asiatica berry), Malik said.

B Natural has branded itself as a 100% fruit juice brand that can be part of a healthy diet and also offers regional flavours in addition to common juices such as orange and mixed fruit.

The marketing plank is similar to what other niche brands such as Raw Pressery and Paper Boat have been offering to their largely urban consumers.

ITC has been positioning B Natural at a premium to the largest competitors in India’s ₹2,500crore juice market, PepsiCo (Tropicana) and Dabur (Real).

“Most (1 litre tetra pack) juices are (priced) at ₹140-145. The juice market has nectars priced at ₹99, and they have stayed at that price now for the last couple of years,” Malik said. Nectars are fruitbased juices that contain other ingredients such as sugars.

While B Natural’s 1 litre tetra packs start from ₹84-99, its pomegranate juice debuted at ₹199 a litre. B Natural is also available in 200ml tetra packs starting at ₹20. ITC says it has kept its juices priced such to target both the mass and premium segments.

An analyst said that although the juice market in India is ripe for more competition, ITC may have to focus more on mass categories. “ITC is present in FMCG segment at a niche level with all their premium products,” the analyst from an equities brokerage firm said, requesting anonymity. “They need to start targeting the lower mid-segment.”

Dabur’s Real controls over 50% of India’s juice market share, while PepsiCo’s Tropicana has 28%, according to data from AC Nielsen from January 2017.