The summer boost to soft drink sales


With the onset of summer means, sales of soft drinks and bottled water have soared, discovers Bhiva P Parab

With the summer season at its peak in Goa sales of soft drinks and bottled mineral water have started increasing. The state recorded temperature of two-four degrees Celsius above normal in the last few days and since around beginning of March the residents have been feeling the heat. Sales of soft drinks have risen with the temperature and retailers as well as hotels are reporting that their cash register has been jingling non-stop. According to them around 50 percent of the total sales during the year of soft drinks take place during the summer season.

From March the climate in Goa changes and the temperature increases. So as the weather gets warm it is more important to ensure that soft drinks, bottled mineral water are kept chilled and readily available at chilled temperature. Availability is the key driver for soft drinks  and water sales particularly between March and May,” said a trader.

The summer is synonymous with soft drinks and during the summer season there is good demand for the soft drinks and bottled mineral water. Most cold drinks vendors reveal that, business usually witnesses an increase of around 100 percent or more during the three summer months as most of the people buy various kinds of soft drinks to drink at the spot or to take home.

The countdown of the seasonal spurt has already begun for shop owners. The cost of the cold drinks differs in various markets according to the brand. As such the food industry does not work on market per se. People economise on clothing and luxuries but they always have money for food especially soft drinks and bottled mineral water to quench their thirst. Along with carbonated drinks like Coca-Cola and Pepsi, juices and energy drinks like Real, Frooti, Rio and Red Bull are also in high demand. The imported soft drinks being sold in the market come from various countries and the energy drinks usually come in 250 ml cans and prices start from Rs 25.

A shop owner said that we have had steady business all over the year however during the summer time the business increases. We have a dearth of space to display various varieties during the summer.

According to the information available from sources, sales of all kinds of carbonated and non-carbonated soft drinks has increased sharply of late and sugar-free drinks are also high in demand due to a rising number of health conscious people. Keeping in mind consumer requirements manufacturers have been coming up with a wide variety of juices with no added sugar. Coke and Pepsi are carbonated drinks and juices and powdered drinks like Tang are non-carbonated and the different types of chilled beverages and instant ready-to-drink items are available in tetra packs, pet bottles, small bottles and cans.

A roadside vendor along the coastal belt said, “The number of people visiting the stall for soft drinks, bottled mineral water varies daily. However, there is quite a good business during the summer especially along the roadsides in the coastal belt where there are tourists especially the Indian tourists.” He added, “sometimes the number of consumers cross 70 giving us good business while on the other days they are less. Overall the warm months are good period for us.” Soft drinks still have a strong seasonality curve in the state and  a warm climate boost business further. Big companies like Coca-Cola and PepsiCo India have been aggressively expanding their base in rural areas along with urban pockets to drive sales and the availability of the soft drinks can be seen almost everywhere in the state.

According to the information available from the sources, bottled water is a runaway success in the summer and traders should look to capitalise on the trend. This being a wedding season soft drinks and bottled water is performing well and the sector remain a key focus area for some traders during the summer. Moreover for weddings the orders are in bulk. The popularity of  flavoured drinks is also on the rise in the recent years and traders are aiming to capitalise on the trend. The summer days are overall good for the soft drinks and mineral bottled water trade.