Wednesday, August 26, 2009

Galla Foods launches two fruit beverages

The Chennai based fruit beverage maker Galla Foods Wednesday launched two fruit drinks - mango and apple-litchi blend - to consolidate its presence in the country's booming Rs.2,000-crore market for such soft drinks.

Jay Galla, managing director of the Rs.38-crore company, told a launch conference here that the company's drinks would be wholesome thanks to the 14 percent pulp content for mango-based drinks against 10 percent for most other competing products.

"The pulp content in our mango drink is higher. Yet the price is lower than competition," he said.

The 275 ml and 550 ml mango packs will be retailed at Rs.12 and Rs.22 respectively, while apple-litchi blend will cost Rs.13 and Rs.24.

The fruit beverage market has three categories - fruit drink (pulp content up to 20 percent), nectar (pulp 20-80 percent) and juice (100 percent fruit juice). Fruit drinks constitute nearly 76 percent of the total market.

According to Galla, his company will be focussing on the mango drink segment as it constituted 90 percent of the total fruit beverages market.

With competition vending in pack sizes 200ml, 250ml (price band Rs.10-15) and 500 ml (Rs.25), Galla has gone for lower price offering higher quantity.

Part of the Amara Raja group, the four-year-old Galla Foods with a 20-tonne per hour capacity plant at Chittoor in Andhra Pradesh exports the bulk of its fruit concentrates and pulp to Europe, Japan and the US.

It is now looking at the domestic market, having launched its mango nectar (24 percent pulp content) last year.
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