Consumers are back, says Pepsi's Bakshi

After witnessing a major impact on sales due to the controversy over pesticide residues, soft-drinks maker Pepsi on Monday claimed that its business is returning to normalcy.

Rajeev Bakshi, chairman of Pepsi India Holdings, said consumer confidence is bouncing back rapidly and the company's sales are returning to the pre-controversy level.

Also Read Soft drinks, hard truths

He added that the adverse impact on sales was more in non-metros and semi-urban areas than in metros and rural areas.

Bakshi didn't reveal the specific impact on the company's overall sales since the controversy. He, however, didn't rule out the media reports that the firm's sales have fallen by 30 per cent immediately after the controversy.

Bakshi argues, "The comparison of water composition with the European Union standards is totally unfair. The EU does not prescribe any standards for the finished products but stipulates norms for the water used in manufacturing the products. So, we can export our products to any country."

"If the theoretically zero-level of chemical contents in the water, as prescribed by the EU standards, is followed in the country, it will affect the soft-drinks industry in the least compared to the effect it would have on the manufacturers of coffee, tea, packaged fruit-juices and other powdered drinks," Bakshi said at a press conference in New Delhi.

He launched the company's bulk water packs in 20 litre jars under the Aquafina brand for the first time in the country.

Blaming the media for blowing the issue out of proportions, he said it is now the responsibility of the media to help the industry come back to normalcy since the government reports have made it clear that the chemical contents in soft drinks are well within the EU-prescribed limits.

Explaining the company's plans for rolling out the bulk water packs in other parts of the country, Bakshi said the product will be launched shortly in New Delhi followed by other metros and major cities.

So far, Aquafina is available in packs of up to two litres only. The company claims that it has share of 25 per cent in the branded water segment is third after Bisleri and Kinley in terms of market share.