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Pepsi IPL sponsorship does not push sales

Mumbai, June 4 ():  Pepsi, the title sponsor of IPL is yet another casualty. Though exact figures are not out, market forces say that in April, Coca-Cola sold more than Pepsi and not only it sold less than the rival but dropped in volume compared to last year summer sales. The May figures are yet to come in to know whether Pepsi cashed in on the second part of the IPL.

The soft drink major pumped in around Rs 160 crore on the T20 tournament conducted from April 3 and May 26. Though sales figures for May are not yet available, the April figures show that its market share in the beverages industry in April came down to 29.7% from 32.1% in 2012. These figures were gathered by Neilsen data the research data firm. Rival Coco Cola which had 45.8% last year in April rose to 48.3% this year for the same period. Coke growth was faster than the rivals. The volume includes water, juices and aerated drinks.

Both these soft drink companies are leaders in the market. Markets say that Coca Cola cut prices on the 200 ml glass bottles to Rs8 and above it offers trade discounts to sellers. 400ml and 500 ml PET bottles and 300 ml glass bottle were launched this summer. Coke strategy is to increase volume and not just the profit margin. For this it targets organized retailers who in turn cater to local neighbourhood shops for a little margin. Coke delivery system helps the local grocery shops since the retailers give delivery in the morning while Pepsi comes in the noon when these shops are closed.

Coca Cola aims to widen the base to 2.4 million outlets from the 2.2 million. The Indian soft drink industry is worth Rs14, 000 crore and the two MNC dominate the field while Campa Cola and other local colas operating in small towns and villages. The multi- serve packs are marketed through modern retail route by the two majors. Pepsi has signed a five year contract for title rights of IPL for Rs396 crore.

The company was beverage partners with eight IPL teams and presenting sponsor for Sony Max. All this cost Rs160 crore. Whether the next season will see the soft drink major stay around has to be seen since the contract can be cancelled on unforeseen circumstances which could the match fixing etc.