FOOD BEVERAGES ASSIGNMENT

Importance of beverages
Both alcoholic and otherwise, are as diverse as its people, influenced by the
country’s vast geography and the weather that comes with it. Hot summers
demand thirst-quenching, refreshing drinks, while chilly winters call for steaming
hot cups of goodness. Every region tends to have its own eclectic set of drinks
suited for each season. These most likely contain a mix of spices and herbs, with
blends concocted with the health benefits of sourcing local ingredients in mind.

Traditional beverages include Aam Panna and Aamras (both made from
mangoes), Jal-Jeera (literally translating to cumin water from Hindi) which is a
beverage also used in Pani Puris, and Kashmiri Khawah – a tea made from a spice
mix for cold regions. Milk-based drinks include tea and coffee, but also Lassi (a
yogurt-based drink either sweet or salted) or buttermilk among other variants.
Nutrient-balancing milk drinks have an important place in the beverage market in
India. Brands such as Bournvita, Boost, Complan, and Horlicks were household
names.

With economic growth, increasing urbanization and the ease of travelling

worldwide, Indians have the choice to cater to their changing consumption
patterns. This has led to carbonated, non-alcoholic beverages acquiring a share of
the market across the country. Not surprisingly, urban areas hold a larger share
compared to rural India. This segment was expected to grow exponentially and
diversify to include a fusion of drinks in the years to come. Furthermore, the
convenience of being ready-to-drink and easily available works in favor of the big
players including Pepsi (supplied by Varun Beverages), Coca-Cola, Parle Agro, and
Dabur.

Scope of beverages
  Beverages are essential for growth, development as well for carrying out
various physiological processes that are critical for living a healthy life.

 In adult individuals 70 percent of body weight, 73 percent of lean muscle,

25 percent of adipose tissues, 22 percent of bone and 80 percent of blood
consists of water. Consumption of beverages help in maintaining the water
content in body and prevent dehydration

 The water assists in digestion, assimilation and excretion of foods. It also

helps in removing the toxic substances produced in body as a result of
metabolisms such as urea, uric acid, ammonia etc. through kidney.

 Beverages specially the fruit and vegetable based ones are source of
micronutrients (vitamins and minerals) and anti-oxidants (carotenoids,
flavonoids).

 Certain beverages like tea and coffee contain alkaloids which stimulate the
central nervous system.

 Fermented dairy beverages are consumed because of the beneficial

microflora present in them which assist in restoration and improvement of
gastro-intestinal health.

Beverage Industry Overview

The food processing industry in India has a total turn over of around USD 65
billion which includes value added products of around USD 20.6 billion. Coca cola,
Pepsi, and Nestle are the leading beverage brands that have been ruling the
Indian beverage market since past few decades. Among all the beverages, tea and
coffee are manufactured as well as exported heavily in the international markets
succumbing to the individual demands around the world.

The beverage industry in India constitutes of around USD 230 million among the
USD 65 billion food processing industry. The major sectors in beverage industry in
India are tea and coffee which are not only sold heavily in the domestic market
but are also exported to a range of leading overseas markets. Half of the tea and
coffee products are available in unpacked or loose form. Among the hot
beverages manufactured in India, tea is the most dominant beverage that is ruling
both the domestic and international market even today. The supply of tea and
coffee is insurmountable in the Indian beverage industry.

The taste factor in tea varies according to the taste of individuals in different
countries and the beverage companies in India manufacture the products in
accordance with the taste of the individuals. For example, the inhabitants in the
southern parts of India prefer dust tea whereas the inhabitants in the western
part of India prefer loose tea. The Southern India also prefers coffee a lot. The
production capacity of the total packaged coffee market is 19,600 tonnes which is
approximately a USD 87 million market. The soft drink market such as carbonated
beverages and juices constitutes around USD 1 billion producing 284 million
crates per year. In the peak season, the consumption capacity reaches 25 million
creates per month and during off season the same goes down to 15 million crates
in a month. Pepsi and Coca cola are the two leading brands in the Indian market.
The mineral water market in India is a USD 50 million industry and produces 65
million crates. Around 4.9 million crates is usually consumed each month but it
rises to 5.2 million crates in the peak season.

About Beverage Companies in India

Fruit juices, pulp and concentrates, and sauces or ketchups are doing very well in
the beverage market in India for the past few years. Various milk products, health
beverages, beer, and country liquors have also been contributing largely in the
rising demand of beverages in India. The leading beverage companies in India are
also exporting various products especially tea and coffee to the international
markets every year. Tea and coffee have registered an excellent growth in the
Indian beverage market as these are the most preferred drinks purchased
excessively around the world. Among all the leading beverage companies in India,
Coca cola has accounted for a thriving growth since its inception. It occupies
around 60 percent of the carbonated drink sector in the Indian beverage industry.
Another predominant brand in beverages is Nestle India Limited which occupies
61.85 percent of the total Nestle S.A. Switzerland. The Nestle products are hugely
exported to Russia apart from selling in the domestic market.