Coca-Cola gets nod to market energy drinks in India

By Ankush Chibber

- Last updated on GMT

Coca-Cola gains in-country manufacturing rights for energy drinks in India
Coca-Cola gains in-country manufacturing rights for energy drinks in India

Related tags Coca-cola Corporation

Beverage major Coca-Cola Company has been given the green light by Indian authorities to manufacture and sell energy drinks in the country.

The approval makes Coca-Cola the first multinational corporation to get such permission. The company does sell its energy drink burn, launched in 2009, although this is imported from Malaysia. A Coca-Cola spokesperson confirmed the go ahead to FoodNavigator-Asia but declined to disclose any further information.

Media reports suggest that the approval has been granted by the Ministry of Health and its regulatory agency, the Food Safety and Standards Authority of India (FSSAI), have given the approval. The approval comes after the company announced in June that it will invest an additional US$3bn in India through 2020 to further capture opportunities in the country's fast-growing non-alcoholic ready-to-drink (RTD) beverage market.

“Our ongoing investment in India is focused on delivering innovation, partnerships and a portfolio that enhances the consumer experience, ensures product affordability and builds brand loyalty to deliver long-term growth,”​ said Mukhtar Kent, Chairman and CEO at the Coca-Cola Company.

Energising India

India’s non-alcoholic beverage is pegged at around US$1.2bn and is set to surge to US$2.3bn by 2015, according to a report from the Associated Chambers of Commerce and Industry (ASSOCHAM).

Coca-Cola has presence in the market with its Burn product, competing against sector names like Red Bull, Power Horse and Cloud 9.

The firm did launch another product (Shock) in 2011 but it failed to gain a hold in the local market.

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