'Pepsi Lipton' Alliance To Offer Ready-To-Drink Tea-Based Beverages In India

Pepsi and Hindustan Lever Limited (HLL) today announced the creation of a Pepsi Lipton alliance that pools the companies' respective strengths to market, sell and distribute Lipton ready-to-drink (RTD) teas and tea-based beverages in India.

Lipton is the world's best-selling brand of tea. The new arrangement will augment Pepsi's portfolio of healthy refreshment beverages, complementing brands such as Tropicana and Aquafina. It also will advance Lipton's leading position in the Indian RTD tea market, a fast-growing beverage category. The Pepsi Lipton alliance in India will build upon the success of the Pepsi-Lipton Tea Partnership in the United States as well as Pepsi Lipton International JV formed in October 2003 for select international markets.

Drawing on strengths

The Indian alliance draws on the strengths of both companies: HLL brings the Lipton brand, as well as its world-class Ice tea products. HLL also brings its Research and Development capabilities for tea based beverages. PepsiCo brings its extensive bottling and distribution system, with its strong customer insights and beverage know-how. The new alliance will target a national presence building on Pepsi’s market leadership in soft drinks.

Said Mr. Rajeev Bakshi, Chairman Pepsi India Holdings Pvt. Ltd., "We are creating a common vision and tremendous synergies together. This new alliance will enable both companies to leverage its extensive manufacturing, sales and distribution network and marketing strengths. At the same time, this strategic alliance in one of the fastest growing beverage segments will provide our customers with Lipton, the world leader in tea."

From HLL’s perspective, the creation of Pepsi Lipton alliance in India is in line with the company's "Path to Growth" strategy, its move into new channels and its drive into new categories for sustained future growth.

Mr. M.S. Banga, Chairman, HLL, said: "We have a strong presence in developing and emerging markets, yet there is plenty of 'white space' to move into and we see Pepsi as the ally of choice to help us achieve this. This new alliance marks a truly significant step in the expansion of the Lipton brand bringing it within the reach of millions of new consumers."

Wide range of beverages

A whole slew of new products are being developed and tested for launch in the Indian market. Iced tea flavours, green tea, herbal teas, and diet tea will be available in a host of packaging formats - glass, tetrapak and PET and will be marketed through the extensive distribution channels to meet different consumer needs. The hot tea (Cardamom, Diet Cardamom, Ginger and Masala flavours) and hot coffee (Pure, Cappuccino and Mochaccino) portfolio is already available through the strong vending networks of HLL and Pepsi.