The FMCG major begins with a sugar-free coconut water-based cola, betting on rising demand for healthier beverages and the premium soft drinks market
ITC has forayed into India’s premium carbonated beverages market with the launch of B Natural Coconut Cola, a sugar-free drink made with tender coconut water. The launch marks the company’s entry into the cola category as it seeks to strengthen its beverages portfolio and tap into the fast-growing premium and health-conscious consumer segment.
The product has initially been introduced on quick commerce platforms as part of a pilot rollout and will subsequently be expanded through wider retail channels.
The company also plans to broaden its carbonated beverages portfolio with more flavours and variants.
“Growth will be driven across ecommerce, modern trade and traditional channels,” said Sanjiv Puri, Chairman and Managing Director, ITC. “It is a large beverage market, and our focus will be more on the premium end,” he added.
Healthier Beverage Trend
The unveiling of new category comes as demand for low- and no-sugar beverages continues to grow, with consumers increasingly opting for healthier alternatives. Reflecting this shift, Varun Beverages, PepsiCo’s largest bottling partner, reported that low- and no-sugar products accounted for 63 per cent of its consolidated sales volume during the March quarter.
ITC has priced the new beverage at Rs 60 for a 250 ml can. In comparison, a 300 ml can of Diet Coke or Pepsi Black Zero Sugar is priced at Rs 40, while smaller packs are available in select markets for Rs 10 and Rs 20.
The Indian cola market has become increasingly competitive since Reliance Consumer Products revived the Campa brand in 2024 with aggressive pricing. The launch of a Rs 10 200 ml Pet bottle triggered a price war across the carbonated drinks segment, prompting established players to revise prices and affecting the wider beverages category.
In FY26, Reliance’s fast-moving consumer goods business reported gross revenue of Rs 22,000 crore, double the previous year’s figure, driven largely by its beverages portfolio. Campa alone generated gross sales of more than Rs 4,700 crore.
Last month, Isha Ambani, Director, Reliance Retail Ventures, said Campa had challenged long-established players and emerged as India’s fourth-largest carbonated soft drinks brand, securing a double-digit market share in key markets.
Portfolio Expansion
For ITC, the cola introduction forms part of a broader strategy to diversify its beverages business. The company has repositioned B Natural beyond fruit juices by introducing sugar-free and low-calorie beverages, while also extending the Sunfeast brand into adjacent categories such as high-protein smoothies.
In its FY26 annual report, ITC said it had expanded its beverage portfolio with a no-added-sugar juice range and coconut water products, signalling its intent to build a stronger presence in the premium beverages category.
