For consumers it’s dil mange more as cola giants announce price cut
Ens Economic Bureau

New Delhi, March 2: Summer 2001 is going to be really cool, courtesy Finance Minister. The aerated drinks Coke, Pepsi and others are going to be cheaper. Like others, the soft drink industry has also decide to pass on the excise benefits to the consumer.

While the net impact, according to the companies has been a reduction of two per cent, they are planning to reduce prices by around seven to ten per cent. Interestingly, while Pepsi announced the price cut on specifically chosen packs across its brands, Coke announced an across-the-board reduction in prices of all its brands including Maaza with immediate effect. Pepsi has reduced the prices of its various pack sizes across its brand categories Pepsi, Mirinda Orange, Mirinda Lemon and 7UP. The prices of one litre pack by Rs 2 from Rs 22 to Rs 20 and of 200 ml pack by 50 paise from Rs 7.50 to Rs 7. The company has also brought down the prices of two litre pack and 1.5 litre pack by Re 1 to Rs 49 from Rs 50 and Rs 42 from Rs 43.

In the juice drink segment, Pepsi has brought down the prices of the 250 ml pack its brands Slice and Mangola to Rs 9.50 from Rs 10. Coke has also reduced the price of its 1 litre pack from Rs 22 to Rs 20 and the 200-ml pack size from Rs 7.50 to Rs 7.

‘‘The reduction in the prices of Coca-Cola India products varies from seven to 10 per cent, which is much higher than the effective rate of excise relief given to the industry,’’ said Sanjiv Gupta, Senior Vice President of Coca-Cola India here in a statement.

Alongside the excise duty concession by reducing the special excise duty to 16 per cent from the present 24 per cent, the industry will now bear a total duty of 32 per cent the budget also announced reduction in abatement of the maximum retail price of soft drinks from the current 55 per cent to 50 per cent.The reduction in abatement has affected the industry adversely. P M Sinha, chairman, PepsiCo India Holdings Pvt Ltd in a statement said, ‘‘However the reduction of abatement for the industry has been done without consulting the industry.

Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.