Financial Times - CCS launches first locally produced energy drink

CCS launches first locally produced energy drink

Ceylon Cold Stores Limited (CCS) launched the first locally produced energy drink - Wild Elephant last week with a penetration pricing strategy and plans to popularise the brand in the rural areas.

“We are the lowest in the market at Rs.95 compared to the other brands, all of which are imported,” Upendra Gunaratne, Brand Manager Wild Elephant told The Sunday Times FT. Foreign drinks in this category are in the over Rs 200 range

He said that the main reason behind this low pricing strategy is to popularise the beverage in the rural areas. “We want to market the concept in the rural areas as well, because if not the volumes in the urban areas are far too small for us,” he added. He said that the company can afford to sell at this price, because unlike other imported brands CCS does not have to pay franchise fees to principals.

Industry analysts said that the new entrant will be tough competition for the present market leader – Red Bull, imported by Stassens. “The world over Red Bull is the undisputed global market leader, but a broadening of product types and proliferation of brands means that its share is gradually being eroded,” an industry analyst said.

Locally, including Red Bull and Booster there are six imported brands competing in a very niche market. “The pricing strategy of CCS on the new product will increase penetration and increase the market share,” an industry analyst said.

Back to Business