Gujarat Cooperative Milk Marketing Federation (GCMMF) has launched a new dairy-based fruit drink, “Tru,” at a competitive price point of ₹10 for 150ml. This move is part of the company’s strategy to enter the low-priced beverage market and increase its sales. The company plans to introduce more beverages at this price point, making it a major player in the market.
The ₹10 price point has become a popular category across various consumer goods, as it provides accessibility to the large Indian middle class and lower-middle-class population. Several companies, including Reliance Consumer Products Limited (RCPL), are already present in this space. RCPL relaunched its Campa brand at ₹10 last year, disrupting the low-priced beverage market and forcing established players to re-evaluate their pricing strategies. Dabur India also added the ₹10 price point to its Real fruit drink portfolio a few years ago.
GCMMF’s Tru will compete indirectly with other low-priced beverage brands such as Dabur’s Real, Varun Beverages’ Tropicana, Britannia’s Winkin Cow, and Parle’s Smoodh. However, product availability and sustained advertising will be crucial to success.
High inflation poses a challenge for companies operating in the ₹10 segment, as they need to manage costs to maintain profitability. Companies are forced to lower quantities to sell at the same price, making it a challenging market to navigate.
The Indian beverages market is expected to grow to ₹1.47 trillion by 2030, driven by increasing demand and urbanization. The ₹10 price point is a key factor in this growth, as it provides access to a wider audience and expands the market. As the competition heats up, companies will need to innovate and adapt to stay ahead in the market.