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PepsiCo's energy drink Sting is now its fastest-growing brand, surpassing staples like Pepsi-Cola and Mountain Dew, executives have announced. Despite the overall decline of aerated soft drinks, Sting's growth exceeds other brands launched in India within the past three decades. Concurrently, PepsiCo India is set to launch 100% recycled PET bottles, advancing its commitment to a circular economy.
Unlike aerated soft drinks, energy drink sales are not limited to seasonal spikes. In fact, Sting's contribution during the December 2022 quarter exceeded its full-year sales. The growth of aerated soft drinks has declined by over 20% this year due to unseasonal rains in the peak summer quarter of April-June.
Despite lower temperatures and unseasonal rainfall, which can lead to muted volume growth in the June quarter, Motilal Oswal Financial Services predicts that realizations will increase, driven by a growing mix of energy drinks, fruit-based juices, and value-added dairy products.
PepsiCo India plans to introduce new 100% recycled PET (rPET) bottles for its Carbonated Beverage category in line with its commitment to building a circular economy system. The company aims to establish a 'PepsiCo positive' (pep+) value chain where packaging never becomes waste. Their endeavor aligns with the government's measures to promote a circular economy in India.
The rPET bottles will be manufactured in collaboration with Srichakra Polyplast, a local plastic recycling company, and bottling partner Varun Beverages. This initiative is part of PepsiCo's overarching pep+ initiative, which was announced in December last year and aims to increase the use of reusable packaging in its beverage offerings.
The efforts taken by PepsiCo India to promote a circular economy have been well received. George Kovoor, Senior Vice President of Beverages and Sustainability at PepsiCo India, expressed his encouragement towards the government's measures.
PepsiCo's Sting energy drink has shown remarkable growth, leaving an indelible mark in the soft drink industry. With its commitment to sustainability, PepsiCo India is making significant strides toward building a positive value chain.
Photo: Ja San Miguel/Unsplash
