BEVERAGE INDUSTRY

Submitted to

Prof. Sanket Vatavwala

Submitted by – Group 4

HIMADRI JANA - MBA/07/077

PRANJAL YADAV - MBA/07/035
SARMA SIDDHARTH M - MBA/07/104
ANSH LAKHMANI - MBA/07/127
SUNDERJITH K - MBA/07/172
KAIRAM SAI KOUSHIK-MBA/07/204
Global Beverage Industry

The Beverage Industry is an extremely stagnant market with a compound annual growth rate
(CAGR) of 2.53%; it is anticipated to increase from $1,561.084 billion in 2019 to $1,852.278
billion in 2026. Rising preferences for ready-to-drink beverages are a result of rising disposable
income and a rise in disposable income. Focusing on mergers, new product launches, and
acquisitions to achieve a competitive advantage is becoming increasingly important for key
industry participants.
Increasing health concerns surrounding sugar intake in packaged beverages may affect the
beverage sector, but as a result, the leading market companies are launching non-alcoholic and
zero-sugar based products to capture the untapped market and remain competitive.
The top four global beverage companies are:
Brand Sales (in millions) U.S. dollars
Anhueser-Busch InBev 54,304
Nestle SA 50,950
The Coca-Cola Co. 38,655
PepsciCo Inc. 35,763

Indian Beverage Industry

The beverage market in India have a different scenario than global. In India, the beverage
market is still growing, and new products launches are still a part of making people understand
the need of packaged beverages. The revenues from this industry is growing at a compound
annual growth rate (CAGR) of 13.74% and is expected to grow from US$1,610.00m in 2022 to
US$3,065.00m in 2027. The user penetration in 2022 is 9.4% and is expected to hit 16.2% in
2027. The highest consumption beverage in India are hot drinks with a consumption of 91
billion litres in 2018 and soft drinks have a consumption of 26 billion litres in 2018.

Latest trends of the Beverage Industry:

Sugar Reduction: Many consumers across the world are now looking to reduce their intake of sugar.
They want beverage makers to reduce sugar in the drinks, but also to retain the taste. More than 35
countries across the world are now implementing sugar taxes. All these resulted in beverage industry
launching new varieties. Some product examples are Red Bull Sugar Free, Monster Energy Zero, etc.

Hybrid Beverages: Even successful companies need to innovate to cope up with the new competitors.
Beverage companies are now coming up new varieties by blending the top qualities of existing drinks.
Some of the hybrid energy drinks are now focusing to improve hydration as well.

Latest issues of the Beverage Industry:

Sustainable Packaging: Plastic Ban/ Reduction of single use plastic is a concern for beverage industry.
If the product is tagged as a ‘eco-friendly’, knowingly or unknowingly, consumers tend to connect with
that product. Not only in the beverage industry, manufacturers across the world are now deploying
green business practices- from production to the packaging.

CBD Beverages: The Federal Drug Administration (FDA) has not approved of using
Cannabidiol (CBD) drug in Food & Beverages sold in interstate commerce. However, many
beverage makers are using CBD in their beverages through subsidiaries, infused products.
Latest trends and issues of the Coca-Cola:

• Coca-Cola is currently restructuring its organizational structure by laying off some

employees, reshaping the brand portfolio by reducing the number of portfolio offerings
to half of the current number

• Coca-Cola’s new strategy is to gain competitional advantage by presenting in

restaurants. Currently, 40.43% restaurants offer Coca-Cola on their menus

• Traditional Coca-Cola beverages had seen the volume growth in every geographical
region in the last quarter. Coca-Cola Zero Sugar’s volume doubled in last three months
across North America

Brand Elements

Branding is an important aspect of any business, and the beverage industry is no exception. In the
beverage industry, there are several key elements that contribute to a company's brand and help it
stand out in a crowded market.
First and foremost, the name of the company and the names of its products are crucial branding
elements. A catchy and memorable name can go a long way in helping a company, and its products
stand out from the competition. For example, names like Coca-Cola, Pepsi, and Red Bull are
instantly recognizable and have become synonymous with the beverage industry. The iconic
Coca-Cola logo is instantly recognizable, with its distinctive red and white colours and Spencerian
script. This logo has been used by the company since its founding in 1886 and has become one of
the most recognizable logos in the world.
Another important element of branding in the beverage industry is the packaging of the product.
The design and color scheme of a beverage's packaging can play a big role in attracting customers
and differentiating a product from its competitors. For example, Coca-Cola's iconic red and white
color scheme is immediately recognizable and has become a key part of its brand identity. The
color red is associated with energy, excitement, and passion, which aligns with the brand's
positioning as a fun and enjoyable beverage. The bottle has a unique shape that is easily
recognizable and has been a vital element of the brand's packaging since the early 1900s.
In addition to the name and packaging, the flavour and ingredients of a beverage can also play a
role in its branding. Some companies may be into tea or coffee, while others may be into fruit-
based or carbonated drinks. The sugar content is another way to look at it. A company may
emphasize the natural, organic ingredients in its products to appeal to health-conscious consumers.

Finally, a company's marketing and advertising campaigns can also be crucial to its branding
efforts. A well-designed and effective advertising campaign can help to build awareness of a
company and its products and can help to create a positive image in the minds of consumers. The
campaigns can be around taglines that can vary in domestic and international markets. In India,
Coke had tag lines like "Thanda Matlab Coca-Cola" and "Open Happiness" in global markets.
"Open Happiness" captures the joy and happiness associated with drinking a Coke. This slogan
has become closely associated with the brand and is often used in conjunction with the Coca-Cola
logo.

Overall, branding is an essential part of the beverage industry. Companies must carefully
consider these elements to effectively differentiate themselves from their competitors and
establish a strong brand identity

Technological Innovation in Beverage Industry

Over the past fifty years, there has been a gradual change in beverages. As a result of technical
development, technology has been created to take the role of manual labor along the chain.
With smart factories and artificial intelligence in robots, smart technologies are ushering in a
new digital era for the beverage industry.
Key players include automation and digitalization. Raw material processing is the first step.
Scales, flow meters, and stylus type charts are used to take measurements. The technology used
in beverage processing facilities nowadays is highly complex, with systems that are
programmed to automatically control the sorts of materials used, their quantities, and even
temperatures for the majority of products. Digital packaging displays have also become popular,
such as the packaging of products at gas stations. Digital status acknowledgment and automated
measures have largely taken the place of manual management and attention in operations.

Intelligent Manufacturing with IoT-enabled Technologies

Manufacturers of beverages and foods are benefiting from the so-called fourth industrial
revolution because to automation and the Internet of Things (IoT). The rapid development of
robotics and other intelligent technology has decreased production costs, increased productivity,
and improved worker safety.
With the help of intelligent sensors installed on packaging lines, beverage packets may be filled
in a variety of sizes and swap forms instantly. Producers of beverages can keep an eye on their
supplies and track the condition of the filling machinery for preventive maintenance.

Using Big Data to Ensure Consistency Across Products

Big data has the potential to be a key tool for the beverage industry in terms of enhancing supply
chain insights. Organizations now have access to an online platform that gathers real-time data
and assists them in determining the best ways to optimize the production of smoothies, soft
drinks, and other beverages thanks to the development of resource planning software.
For instance, Coca-Cola is no stranger to data analytics. The company uses the Black Book
model, an algorithm, to ensure that their orange juice stays the same quality and taste throughout
the year, even when oranges aren't in season. It does this by collecting information on crop
yields, weather, sweetness, acidity, and satellite photos before determining the most effective set
of techniques for maximizing juice output for consumers around the world.