New soda heralds market share shifts in soft drinks
Posted Thursday, February 21 2013 at 02:00
Harris International Limited brings more soda quantity at lower prices for the small and medium soda bottles, respectively, to lure customers to consume theirproducts.
The introduction of new soda brands is likely to tilt market share tables as players seek to hold onto the biggest slice of the market.
This comes after Hariss International Limited-Riham, a beverage and foods manufacturer, at the start of this week entered the soda market with two soda brands; Riham Cola and Riham Fun time while a third brand; Riham Wats’ Up is expected in two months.
The company becomes the third player in the soda market that has in the past decades been dominated by two manufacturers— Crown Beverages (Pepsi) and Century Bottling Company (Coca Cola). Other manufacturers such as Creps and Schweppes joined and left prematurely.
“We have invested about $13 million in a soda plant. Its production capacity model enables us produce more Soda at lower costs. Our bottles are registered under our company name and are different from other bottles currently on the market,”Mr Shadi K Ahmed, a director at the company, told the Daily Monitor.
The new player brings more soda quantity at lower prices for the small and medium soda bottles, respectively, in what is seen as a move to lure customers to consume their products.
For instance, Riham’s small soda bottle (320 mls) goes for Shs1,000 yet Crown Beverages and Century Bottling company’s small bottle that goes for Shs1,000 is 300 mls. Far still, Riham’s 500 mls bottle goes for Shs1,500 consumer price compared to Shs2,000 charged by Crown Beverages and Century Bottling Company for the same amount.
The entry of Riham Soda has been received with varying reactions. Reacting to the development, Crown Beverages managing director Simon Lugolobi, lauded Riham’s entry, saying it not only gives consumers more variety, but also shows continued growth of the sector. He said: “I don’t see what effect their entry will have on the soda market and prices as each company factors in several issues before coming up with a particular price.”
Mr Alex Matovu, a shop owner in Wandegeya, said the new player must work a little harder to compete with Pepsi and Coca Cola products.