ITC Diversifies Beverage Portfolio with Entry into India’s Cola Market
ITC has launched a premium sugar-free drink under its B Natural brand in India’s cola segment, adding to the competition in the carbonated drinks segment. As consumers look for healthier choices, the company is focusing on the fast-growing segment of drinks with no or minimal sugar.
The introduction of ITC's premium sugar-free cola has stoked competition in India's carbonated soft drink sector. Consequently, the organisation is following Reliance Industries' footsteps in an effort to contend with the global giants PepsiCo and Coca-Cola. Coconut Cola, a new beverage from ITC's B Natural line, is crafted with delicate coconut water.
Before rolling it out more widely, the corporation is testing the waters with rapid commerce systems for retail sales. Plus, the diet cola market is the fastest-growing in the nation, and ITC is going after it. Carbonated beverage options from ITC will soon be available in a wider variety of tastes. The chairman and managing director of ITC, Sanjiv Puri, recently stated that the company's beverage division will keep expanding with new varieties, sizes, and tastes.
Why ITC Targeting Sugar Free Beverages Segment?
Among carbonated and non-carbonated beverage categories, sugar-free beverages have seen the most rapid growth in sales. The primary reason for this increase is the growing trend of customers seeking out healthier alternatives. For example, in the March quarter, low- and no-sugar beverages accounted for 63% of the combined sales volume for PepsiCo bottler Varun Beverages.
Online sales, new forms of trade, and more conventional methods will all contribute to expansion, according to Puri. He elaborated by saying that the beverage sector is huge and that ITC would be targeting higher-end products.
A 250 ml can of ITC cola costs INR 60. Diet Coke and Pepsi Black Zero Sugar, on the other hand, cost INR 40 for a 300 ml can, with packs of INR 10 and INR 20 available in some marketplaces and outlets. When Reliance revived the Campa brand two years ago and priced a 200 ml PET bottle at INR 10, it sparked a cola pricing war. Consequently, competitors slashed costs and sales across the board for beverages, even those without carbonation, took a hit. Fuelled by the beverage portfolio, Reliance’s fast-moving consumer goods (FMCG) division had gross revenue of INR 22,000 crore in FY26, which doubled from the previous year. Only Campa's gross sales surpassed INR 4,700 crore.
ITC’s B Natural a Big Dent in Business Till Now
Intense rivalry from Dabur and Pepsi, along with the Campa-led cola pricing war, was affecting sales for ITC's purchased B Natural brand in the juices and nectars market. In an effort to diversify its beverage offerings, ITC has rebranded B Natural as a more comprehensive line that now includes sugar-free and calorie-reduced fruit drinks. It branched out from its Sunfeast brand to include drinks like protein smoothies.
According to ITC's FY26 annual report, the company bolstered its beverage portfolio by introducing a line of coconut water and a line of 'no added sugar' juices. Conversely, the Reliance Campa brand has been an enormous boon to the business. Last month, Isha Ambani, director of Reliance Retail and head of the FMCG company, informed shareholders that Campa has challenged long-standing industry leaders. In addition, she mentioned that the brand has achieved double-digit market share in important markets, making it the fourth-largest carbonated soft drink brand in the country.
