The alliance of Coca-Cola and Procter & Gamble‘s snack and beverage businesses is two months old. Pringles is the only brand already launched in India, and it appears to be suffering the strain of the JV, which will be finalised by 1 July.
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Pringles, supposed to benefit from this merger, is under pressure and distribution channels are drying up, reports a just-food.com correspondent based in India. Pringles were hitherto imported, but no imports have arrived for at least two months, and on-shelf presence is already zero.
Pepsi is a formidable player in India, with Frito Lay selling US$28m. Pepsi’s new subsidiary Uncle Chipps (click here for a report on last October’s acquisition) takes a further US$9m of the packaged potato chips market, which accounts for US$44m of a total packaged snack market worth US$600m. Pepsi has its own large farm plus contract farming to grow low-sugar high-solids potato. Launched in India in 1999, Pringle sold US$200,000 per annum.
By Navroz Havewala, just-food.com correspondent
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