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Pepsi Sales in Pakistan

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Pepsi Sales in Pakistan
INTRODUCTION:

Beverage Industry Overview:

The juice and beverage industry is one of the largest and most contributive industrial sectors in Pakistan. Currently there are about 170 units operating in Pakistan that produce water, syrups and squashes, because of which both upstream and downstream industries have grown and are flourishing. According to CBR, the beverage industry in Pakistan has grown significantly over time.

Pakistan has become the 6th largest exporter of Food and Beverages in the world contributing significantly to the country’s economy. Beverage industry in Pakistan has tremendous growth potential if it is given the proper backing.

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Currently, of an estimated one million metric tons of cold beverages sold in Pakistan each year, 90% represent carbonated soft drinks (i.e., sodas, of which most of them are colas). There are two major names in the carbonated soft drink sector of the beverage industry of Pakistan i.e. PepsiCo and Coca Cola. Amrat Cola is another brand, which, although nowhere near the two market leaders, has still established something of a market share and name for itself in the northern areas of the country due its price competitiveness.

The remaining 10% of cold beverages purchased and consumed (100,000 tons) are juices, nectars and still water. Of these, 10% (10,000 tons) represent the approximate sales of 100% pure juice. Most of the existing fruit juice factories operate in Lahore, Bahawalpur, Karachi, Hyderabad, Hattar (NWFP), Lorali, and Sargodha. As reported by SMEDA, 24 formal fruit juice and pulp processing facilities, plus a number of small informal factories are operating in Pakistan. Estimated installed capacity is approximately 400,000 metric tons per year with a growth rate of 20% to 25% based on a total fruit juice market of Rs2.5– Rs2.6 billion.

The beverage market in Pakistan is expected to grow at between 20% - 25% per annum in the coming years. However, no clear predictions can be made

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