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ITC is expanding its beverages portfolio by entering the premium carbonated soft drinks category

ICICIdirect Research 02 Jul 2026 DISCLAIMER

News:  ITC is expanding its beverages portfolio by entering the premium carbonated soft drinks category with the launch of Coconut Cola under its B Natural brand. The product, made using tender coconut water, will initially be launched on quick commerce platforms before a wider rollout. ITC has priced the drink at Rs.60 for a 250ml can, targeting the premium segment, compared to Rs.40 for a 300ml can for rival diet colas such as Diet Coke and Pepsi Black. The move intensifies competition in India’s carbonated beverages market, where Coca-Cola, PepsiCo and also Dabur in the Juices segment are already key players. ITC also plans to expand its carbonated beverage portfolio with additional flavours, variants and pack sizes as it strengthens its presence in the fast-growing low- and no-sugar beverage segment.

View: ITC’s entry into carbonated soft drinks further intensifies competition in premium carbonated drinks/beverages segment, a market led by Varun Beverages, Coca-Cola. It will also compete with Real Activ juices brand/beverages brand owned by Dabur which offers similar products at approximately similar price range. At its current pricing, ITC is positioned against premium offerings such as Diet Coke and Pepsi Black. The launch also taps into the fast-growing zero- and low-sugar segment, whose share in industry sales has increased to ~30% in CY25 from ~5% in CY20. ITC has invested ~Rs.3,400cr in its FMCG business over the last five years, with FMCG capex as a percentage of operating cash flow rising from 4.0% in FY21 to 5.3% in FY26. While the company continues to enter high-growth categories, market share gains and brand scalability will remain the key monitorables.

Impact: Positive

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