Coke introduces NesTea, a ready to drink beverage in the non carbonated segment. Priced at Rs 25 for a 400 ml pack, is it a good move?

If we look at the non carbonated drinks segment, Coke’s Pulpy Orange is priced at Rs 20 for a 400 ml pack and its Minute Maid Nimbu fresh is priced at Rs 15. Imagine how different it is for you to have a Nimbu drink or an Ice tea. I don’t think there is much.
Traditionally tea has been liked hot by Indians. Coke wants to change this Indian mentality. The reason could be probably Indians becoming more aware about their health coupled with their increasing ability to spend more. Ice tea would be a good substitute to carbonated drinks and would add to the options available in the non-carbonated segment.

Agreed, the Indian juice market is growing at a considerable pace, but 25 rupees for Ice tea? It is tea after all! We can spend more on fruit juices because its juice and packed fruit juice is good for health. At least that is what we think!

So will Coke be able to change this Indian mentality and especially at this higher price? I have my doubts but I am sure Coke has thought this through.

Teng

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