January 26, 2016

Coca-Cola India is entering into India’s value-added dairy drinks space with the launch of its VIO brand scheduled to be released nationwide next month.

The VIO product line has been custom formulated as part of the company’s “Made in India, Made for India” platform, at the Coca-Cola India’s R&D center in Gurgaon to suit Indian consumer’s tastes. Accounting for input from additional R&D centers in Atlanta and Shanghai, VIO offerings will be available in two varieties – ‘Kesar Treat’ and ‘Almond Delight’, both flavored with saffron, pistachio, and almond.

Commenting on the VIO launch, Mr. T. Krishnakumar, chief executive of Hindustan Coca-Cola Beverages said in a company statement, “…as we venture into this important segment, our intent is to make VIO easily accessible to the consumer. As part of the phased pilot launch, VIO flavored milk will first be made available in the top metros across the country, through modern trade outlets and e-commerce platforms and eventually expanded to traditional trade as well.”
Under the first phase of the launch beginning January 26, VIO products will be exclusively available through 500 Reliance Retail outlets, with Reliance Retail conducting promotions and sampling programs to promote the products which will be targeted toward a young, upwardly mobile demographic, before being released through a wider range of retail stores on February 3, according to ScoopWhoop.

“VIO aims to establish new consumption occasions for the consumers, over and above the standard in-home consumption,” notes Mr. Debabrata Mukherjee, vice president, Marketing and Commercial Coca-Cola India and South West Asia in a company release. The product is packed with Milk power and targeted for consumers’ on–the-go.”

The Hindu Business Line reports that Venkatesh Kini, President of Coca-Cola India and South West Asia said that the company will be focusing on branding, packaging, and distribution, and is therefore seeking out partnerships with domestic “well-entrenched” dairy companies to fill a milk sourcing and collecting need.

Although Coca-Cola is positioning itself to gain from India’s unorganized, but massive dairy sector, estimated at between 120 and 135 billion liters per year, the Business Standard reports that Mr. Kini states, “We do have plans to set up our own packaging units in future for the dairy products, but we will not get into milk collection.”