Zero-Sugar Drinks Taste Sweet Success

Ratna Bhushan New Delhi: Sales of PepsiCo's zero-sugar and low-sugar drinks doubled to a record 88% of total volumes in the July-September '26 quarter, up from 44% in the corresponding year-ago quarter as consumers turned away from sugary drinks, also mitigating margin pressures amid steep and continuous surge in sugar prices.

Larger rival Coca-Cola, which leads the 60,000-crore soft drinks category, also saw sales of its diets and lights drinks double over last year, which now includes Schweppes sugar-free flavoured drinks as well. PepsiCo's bottling partner Varun Beverages Ltd (VBL) told investors at its post September quarter earnings call in a management commentary that surge in prices of sugar was offset by increase in low sugar and no sugar products. "In India, savings in sugar consumption, driven by a higher mix of low-sugar, no-sugar products helped maintain gross margins despite the inflationary raw material environment affected by the West Asia crisis," Raj Gandhi, president and wholetime director at VBL said on the investor call.

The numbers include sales of sugar-free Pepsi and 7 Up sugar-free, Evervess soda and Aquafina water. Coca-Cola is aggressively pushing sugar-free Thums Up, Coke Zero, Diet Coke and Sprite Zero, and preparing an aggressive roll out of Coke Zero Zero, its global zero-sugar zero-caffeine drink. From a five-year-high record of 30% of its total volume sales being contributed by diet and light drinks last year, the number has more than doubled to touch over 60%, two senior bottling associates of the beverage maker said.