I understand the gst angle. Fizzy cola attracts 40% gst. And quick commerce players want 60% mark up to distribute non alcoholic beer. So the business case is brand building and no product sales. Carlsberg sells non alcoholic beer at these terms so it can bypass a ban on advertising of alcoholic beverages.
Coconut cola is flavored coconut juice without any carbonation so u get around the 40% gst. But it is not that the others are comatose. Pepsi was field testing a nitro cola. Here they use nitrogen instead of carbon dioxide. So you don’t get carbonic acid in the mouth which destroys your teeth. Being sugar free is fashionable but the other sweeteners don’t seem to be benign either.
Frankly with due credit to ITC – which is one of my favourite management teams currently – I don’t buy this. Coconut Cola – give me a break !!!! Just sell good coconut water. Leave the cola to the cola warriors. Why flatter them with imitation.
But what recently took my breath away – and left everyone wanting more – is an absolutely delicious spicy drink which pairs really well with Indian food. It is yet to be launched but can be tasted. Both Thums Up and Old Monk rum use a spice decoction for adding that zing. This startup uses Mahua cider vinegar. They then blend it with an ayurvedic Dosha balancing herbal mix. So the drink comes in three flavours – vata, pita etc. If you want to put on weight, you have one version. If you are obese, you have another version.
The drink comes as a concentrate. So they don’t deplete water at their manufacturing site. In fact they require zero water to manufacture as they capture the organic water which is there in all juices. The concentrate is send to bars and restaurants who have a nitro machine. The bar adds a tablespoon of the concentrate – adds water and then uses the nitro – to get a really creamy spiced drink. And you get it as part of your bill with 5% gst. You can also order it as part of your food for takeaway.
It is responsibly packed in a glass bottle. And if you give back ten empty bottles, you get a free drink.
It would be interesting to see how Shambhala – not a cola – competes with Coconut Cola – force fitted as a cola.
These days any company can be hit by a bullet made in some garage by a startup.
The Cola wars are far from done. Reliances Campa Cola generated little fizzz. And ITCs Coconut Cola is unlikely to be the next big thing.
Coca Cola and Pepsi Cola deserve to be banned – not just their original classic but also their so called diet versions. They are bad for the environment, bad for the kids and bad for the country. They are good for doctor revenues.
I would look at the startups more carefully. From sleepy owl to Shambhala and from Boohz to Kombucha – someone is going to get it right. And soon.
So far the only place where soda making home machines sell in is Gujarat. The rest pay for convenience. And taste. But now people want health. And no one really has a healthy addiction.
